Advanced Micro Devices, Inc. stock research
FY2025 Q4
Advanced Micro Devices (AMD) Gross Margin — Quarter Ended Dec 27, 2025
Revenue grew while cost of revenue increased at a slower pace, leading to a higher gross profit and an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin strengthened.
Gross margin takeaway
Quarter ended Dec 27, 2025 · FY2025 Q4
Revenue grew while cost of revenue increased at a slower pace, leading to a higher gross profit and an improved gross margin. Compared to the prior quarter and the same quarter last year, gross margin strengthened.
- The improvement in gross margin was primarily driven by revenue growing faster than cost of revenue, which allowed gross profit to expand at a higher rate relative to revenue.
- Sequentially, revenue and gross profit both increased, with gross profit rising faster than cost of revenue, yielding a higher gross margin. Year-over-year, the same pattern held as revenue growth outpaced cost growth, resulting in a stronger gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
54.3%
Gross profit
$5.6B
Revenue
$10.3B
Cost of revenue
$4.7B
Quarter-over-quarter change
+2.6 pts
Year-over-year change
+3.6 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 29, 2025 | $7.4B | $3.7B | $3.7B | 50.2% |
| Jun 28, 2025 | $7.7B | $3.1B | $4.6B | 39.8% |
| Sep 27, 2025 | $9.2B | $4.8B | $4.5B | 51.7% |
| Dec 27, 2025 | $10.3B | $5.6B | $4.7B | 54.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 27, 2025
+2.6 pts
Year-over-year change
Dec 28, 2024
+3.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was primarily driven by revenue growing faster than cost of revenue, which allowed gross profit to expand at a higher rate relative to revenue.
Sequentially, revenue and gross profit both increased, with gross profit rising faster than cost of revenue, yielding a higher gross margin. Year-over-year, the same pattern held as revenue growth outpaced cost growth, resulting in a stronger gross margin.
Monitor the ongoing financial impact of the ZT Systems acquisition and the sale of its manufacturing business, as disclosed in the filing.