AM

Advanced Micro Devices, Inc. stock research

Sep 27, 2025

FY2025 Q3

Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Sep 27, 2025

Revenue increased versus both the prior quarter and the same quarter last year. Gross profit improved relative to both periods, while cost of revenue decreased sequentially but increased year-over-year; gross margin strengthened for both comparisons.

Gross margin takeaway

Quarter ended Sep 27, 2025 · FY2025 Q3

Revenue increased versus both the prior quarter and the same quarter last year. Gross profit improved relative to both periods, while cost of revenue decreased sequentially but increased year-over-year; gross margin strengthened for both comparisons.

  • Gross profit rose more strongly than revenue in both comparisons, with cost of revenue declining sequentially, which jointly lifted gross margin.
  • Sequentially, gross margin showed a notable improvement. Year-over-year, gross margin was also higher, though the change was more moderate.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

51.7%

Gross profit

$4.8B

Revenue

$9.2B

Cost of revenue

$4.5B

Quarter-over-quarter change

+11.9 pts

Year-over-year change

+1.6 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 28, 2024$7.7B$3.9B$3.8B50.7%
Mar 29, 2025$7.4B$3.7B$3.7B50.2%
Jun 28, 2025$7.7B$3.1B$4.6B39.8%
Sep 27, 2025$9.2B$4.8B$4.5B51.7%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 28, 2025

+11.9 pts

Year-over-year change

Sep 28, 2024

+1.6 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

Gross profit rose more strongly than revenue in both comparisons, with cost of revenue declining sequentially, which jointly lifted gross margin.

Sequentially, gross margin showed a notable improvement. Year-over-year, gross margin was also higher, though the change was more moderate.

Monitor the trend in cost of revenue, which decreased sequentially but remained elevated relative to the year-ago period.