Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

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Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)


	Three Months Ended
		March 28, 2026		March 29, 2025
		(In millions, except per share amounts)
Net revenue		$	10,253	$	7,438
Cost of sales		4,576		3,451
Amortization of acquisition-related intangibles		261		251
Total cost of sales		4,837		3,702
Gross profit		5,416		3,736

Research and development		2,397		1,728
Marketing, general and administrative		1,253		886
Amortization of acquisition-related intangibles		290		316
Total operating expenses		3,940		2,930
Operating income		1,476		806

Interest expense		(37)		(20)
Other income (expense), net		165		39
Income from continuing operations before income taxes and equity income		1,604		825

Income tax provision		238		123
Equity income in investee		6		7
Income from continuing operations, net of tax		1,372		709
Income from discontinued operations, net of tax		11		—
Net income		$	1,383	$	709

Earnings per share
Basic earnings from continuing operations		$	0.84	$	0.44
Basic earnings from discontinued operations		0.01		—
Basic earnings per share		$	0.85	$	0.44

Diluted earnings from continuing operations		$	0.83	$	0.44
Diluted earnings from discontinued operations		0.01		—
Diluted earnings per share		$	0.84	$	0.44

Shares used in per share calculation
Basic		1,631		1,620
Diluted		1,650		1,626

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)


	Three Months Ended
		March 28, 2026		March 29, 2025
		(In millions)
Net income		$	1,383	$	709
Other comprehensive income, net of tax:
Net change in unrealized gains (losses) on cash flow hedges		(43)		27
Net change in unrealized gains (losses) on available-for-sale securities		(26)		2
Total comprehensive income		$	1,314	$	738

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)


	March 28, 2026		December 27, 2025
	(In millions, except par value amounts)
ASSETS
Current assets:
Cash and cash equivalents	$	5,585	$	5,539
Short-term investments	6,762		5,013
Accounts receivable, net	6,035		6,315
Inventories	8,045		7,920
Prepaid expenses and other current assets	2,201		2,160
Total current assets	28,628		26,947
Property and equipment, net	2,723		2,312
Goodwill	25,344		25,126
Acquisition-related intangibles, net	16,154		16,705
Deferred tax assets	476		384
Other non-current assets	6,317		5,452
Total assets	$	79,642	$	76,926
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable	$	2,997	$	2,929
Accrued liabilities	5,785		5,250
Current portion of long-term debt, net	874		874
Other current liabilities	850		402
Total current liabilities	10,506		9,455
Long-term debt, net	2,350		2,348
Long-term operating lease liabilities	647		625
Deferred tax liabilities	307		313
Other long-term liabilities	1,370		1,186
Commitments and contingencies (See Note 10)
Stockholders’ equity:
Capital stock:
Common stock, par value $0.01; shares authorized: 4,000; shares issued: 1,697 and 1,695; shares outstanding: 1,630 and 1,630	17		17
Additional paid-in capital	63,856		63,365
Treasury stock, at cost (shares held: 67 and 65)	(7,421)		(7,079)
Retained earnings	8,082		6,699
Accumulated other comprehensive loss	(72)		(3)
Total stockholders’ equity	64,462		62,999
Total liabilities and stockholders’ equity	$	79,642	$	76,926

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended
	March 28, 2026		March 29, 2025
	(In millions)
Cash flows from operating activities:
Net income	$	1,383	$	709
Income from discontinued operations, net of tax	(11)		—
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	206		175
Amortization of acquisition-related intangibles	551		567
Stock-based compensation	487		364
Deferred income taxes	(79)		(167)
(Gains) losses on long-term investments, net	(66)		2
Other	28		37
Changes in operating assets and liabilities:
Accounts receivable, net	280		748
Inventories	(125)		(682)
Prepaid expenses and other assets	(308)		(237)
Accounts payable	(104)		(289)
Accrued and other liabilities	713		(288)
Net cash flows provided by operating activities of continuing operations	2,955		939
Cash flows from investing activities:
Purchases of property and equipment	(389)		(212)
Purchases of short-term investments	(2,545)		(304)
Proceeds from maturity of short-term investments	652		365
Proceeds from sale of short-term investments	126		33
Purchases of long-term investments	(409)		(239)
Net cash used in investing activities of continuing operations	(2,565)		(357)
Cash flows from financing activities:
Proceeds from debt and commercial paper issuance, net of issuance costs	—		2,441
Proceeds from sales of common stock through employee equity plans	5		4
Repurchases of common stock	(221)		(749)
Stock repurchases for tax withholding on employee equity plans	(134)		(30)
Net cash (used in) provided by financing activities of continuing operations	(350)		1,666
Net increase in cash, cash equivalents and restricted cash	40		2,248
Cash, cash equivalents and restricted cash at beginning of period	5,556		3,811
Cash, cash equivalents and restricted cash at end of period	$	5,596	$	6,059

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)


	Three Months Ended
	March 28, 2026		March 29, 2025
	(In millions)
Supplemental cash flow information:
Cash paid during the period for:
Income taxes, net of refunds	$	30	$	128
Non-cash investing and financing activities:
Purchases of property and equipment, accrued but not paid	$	329	$	147
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents	$	5,585	$	6,049
Restricted cash included in Prepaid expenses and other current assets	11		10
Cash, cash equivalents and restricted cash at end of period	$	5,596	$	6,059

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)


	Three Months Ended
		March 28, 2026		March 29, 2025
		(In millions)
Capital stock:
Common stock, par value
Balance, beginning of period		$	17	$	17
Balance, end of period		$	17	$	17
Additional paid-in capital
Balance, beginning of period		$	63,365	$	61,362
Common stock issued under employee equity plans		4		4
Stock-based compensation		487		364

Balance, end of period		$	63,856	$	61,730
Treasury stock
Balance, beginning of period		$	(7,079)	$	(6,106)
Repurchases of common stock		(221)		(756)
Common stock repurchases for tax withholding on employee equity plans		(121)		(37)

Balance, end of period		$	(7,421)	$	(6,899)

Retained earnings:
Balance, beginning of period		$	6,699	$	2,364
Net income		1,383		709
Balance, end of period		$	8,082	$	3,073

Accumulated other comprehensive income (loss):
Balance, beginning of period		$	(3)	$	(69)
Other comprehensive income (loss)		(69)		29
Balance, end of period		$	(72)	$	(40)

Total stockholders' equity		$	64,462	$	57,881

See accompanying notes.

Notes to Condensed Consolidated Financial Statements

(Unaudited)

NOTE 1 – The Company

Advanced Micro Devices, Inc. is a global semiconductor company. References herein to AMD or the Company mean Advanced Micro Devices, Inc. and its consolidated subsidiaries. AMD’s products include Artificial Intelligence (AI) accelerators, microprocessors (CPUs) and graphics processing units (GPUs), as standalone devices or as incorporated into accelerated processing units (APUs), chipsets, data center and professional GPUs, embedded processors, semi-custom System-on-Chip (SoC) products, microprocessor and SoC development services and technology, data processing units (DPUs), Field Programmable Gate Arrays (FPGAs), System on Modules (SOMs), AI Network Interface Cards (AI NICs) and Adaptive SoC products. From time to time, the Company may also sell or license portions of its intellectual property (IP) portfolio.

NOTE 2 – Basis of Presentation and Significant Accounting Policies

Basis of Presentation. The accompanying unaudited condensed consolidated financial statements of AMD have been prepared in accordance with United States generally accepted accounting principles (U.S. GAAP) for interim financial information and the instructions to Form 10-Q and Article 10 of Regulation S-X. The results of operations for the three months ended March 28, 2026 shown in this report are not necessarily indicative of results to be expected for the full year ending December 26, 2026 or any other future period. In the opinion of the Company’s management, the information contained herein reflects all adjustments necessary for a fair presentation of the Company’s results of operations, financial position, cash flows and stockholders’ equity. All such adjustments are of a normal, recurring nature. The unaudited condensed consolidated financial statements should be read in conjunction with the audited consolidated financial statements in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025.

The Company uses a 52- or 53-week fiscal year ending on the last Saturday in December. The three months ended March 28, 2026 and March 29, 2025 each consisted of 13 weeks.

Use of Estimates. The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of commitments and contingencies at the date of the financial statements and the reported amounts of revenues and expenses during the reporting periods. Actual results are likely to differ from those estimates, and such differences may be material to the financial statements. Areas where management uses subjective judgment include, but are not limited to: revenue allowances, inventory valuation, valuation of goodwill and long-lived and intangible assets, business combination accounting and income taxes.

Significant Accounting Policies. There have been no material changes to the Company’s significant accounting policies in Note 2 - Basis of Presentation and Significant Accounting Policies, of the Notes to Condensed Consolidated Financial Statements included in the Company’s Annual Report on Form 10-K for the fiscal year ended December 27, 2025.

NOTE 3 – Supplemental Financial Statement Information


Inventories	March 28, 2026		December 27, 2025
	(In millions)
Raw materials	$	752	$	909
Work in process	4,748		4,768
Finished goods	2,545		2,243
Total inventories	$	8,045	$	7,920


Property and Equipment, net	March 28, 2026		December 27, 2025
	(In millions)
Land, building and leasehold improvements	$	1,034	$	967
Equipment	3,795		3,453
Construction in progress	646		508
Property and equipment, gross	5,475		4,928
Accumulated depreciation	(2,752)		(2,616)
Total property and equipment, net	$	2,723	$	2,312


Accrued Liabilities	March 28, 2026		December 27, 2025
	(In millions)
Customer-related liabilities	$	1,732	$	1,194
Accrued marketing programs	1,648		1,454
Accrued compensation and benefits	1,280		1,645
Other accrued expenses and liabilities	1,125		957
Total accrued liabilities	$	5,785	$	5,250

Revenue

Revenue allocated to remaining performance obligations that are unsatisfied or partially unsatisfied include amounts received from customers and amounts that will be invoiced and recognized as revenue in future periods for development and engineering services, IP licensing, and product revenue. As of March 28, 2026, the aggregate transaction price allocated to remaining performance obligations under contracts with an original expected duration of more than one year was $264 million, of which $167 million is expected to be recognized in the next 12 months. The revenue allocated to remaining performance obligations does not include amounts which have an original expected duration of one year or less.

Revenue recognized over time associated with custom products and development services accounted for approximately 4% and 9% of the Company’s revenue for the three months ended March 28, 2026 and March 29, 2025, respectively.

NOTE 4 – Segment Reporting

Management, including the Chief Operating Decision Maker (CODM), who is the Company’s Chief Executive Officer, reviews and assesses operating performance using segment net revenue, cost of sales and operating expenses, and operating income (loss). These performance measures include the allocation of expenses to the reportable segments based on management’s judgment. The CODM is regularly provided segment operating income to assess relative segment performance.

The Company’s three reportable segments are:

the Data Center segment, which primarily includes Artificial Intelligence (AI) accelerators, microprocessors (CPUs) for servers, graphics processing units (GPUs), accelerated processing units (APUs), data processing units (DPUs), AI Network Interface Cards (AI NICs), Field Programmable Gate Arrays (FPGAs) and adaptive System-on-Chip (SoC) products for data centers;
the Client and Gaming segment, which primarily includes CPUs, APUs, chipsets for desktops and notebooks, discrete GPUs, and semi-custom SoC products and development services; and
the Embedded segment, which primarily includes embedded CPUs, APUs, FPGAs, System on Modules (SOMs), and adaptive SoC products.

From time to time, the Company may also sell or license portions of its IP portfolio.

In addition to these reportable segments, the Company has an All Other category, which is not a reportable segment. This category primarily includes certain expenses and credits that are not allocated to any of the reportable segments because the CODM does not consider these expenses and credits in evaluating the performance of the reportable segments. This category primarily includes amortization of acquisition-related intangibles, employee stock-based compensation expense and acquisition-related and other costs. Acquisition-related and other costs primarily include certain compensation charges and transaction costs.

The following table provides a summary of net revenue, cost of sales and operating expenses, and operating income (loss) by segment. Segment cost of sales and operating expenses primarily include materials, external manufacturing, labor and marketing and advertising costs, and exclude expenses and credits that are recorded within the All Other category. Each of the Client and Gaming businesses do not qualify as a separate reportable operating segment, however, the Company continues to separately disclose revenue for each business.


	Three Months Ended
		March 28, 2026		March 29, 2025
		(In millions)
Net revenue:
Data Center		$	5,775	$	3,674
Client and Gaming
Client		2,885		2,294
Gaming		720		647
Total Client and Gaming		3,605		2,941
Embedded		873		823
Total net revenue		$	10,253	$	7,438

Cost of sales and operating expenses:
Data Center		$	4,176	$	2,742
Client and Gaming		3,030		2,445
Embedded		535		495
All other		1,036		950
Total cost of sales and operating expenses		$	8,777	$	6,632

Operating income (loss):
Data Center		$	1,599	$	932
Client and Gaming		575		496
Embedded		338		328
All other (1)		(1,036)		(950)
Total operating income		$	1,476	$	806


(1)			For the three months ended March 28, 2026, all other operating losses primarily included $551 million of amortization of acquisition-related intangibles, and $487 million of stock-based compensation expense, respectively. For the three months ended March 29, 2025, all other operating losses primarily included $567 million of amortization of acquisition-related intangibles, and $364 million of stock-based compensation expense, respectively.

NOTE 5 – Acquisitions and Divestitures

ZT Systems Acquisition and ZT Manufacturing Business Divestiture

On March 31, 2025 (the Acquisition Date), the Company completed the acquisition of all issued and outstanding shares of ZT Systems, a provider of AI and general-purpose compute infrastructure for hyperscale computing companies for a total purchase consideration of $4.4 billion. The acquisition is expected to enable the Company to deliver end-to-end AI solutions and accelerate the design and deployment of AMD-powered AI infrastructure at scale optimized for the cloud.

The purchase consideration was composed of the following (in millions):


Cash paid on Acquisition Date	$	3,188
Fair value of 8,335,849 shares(1) issued on Acquisition Date	860
Fair value of contingent consideration(2) on Acquisition Date	361
Total purchase consideration	$	4,409

(1) Represented the fair value based on the closing price of AMD common stock on March 28, 2025 of $103.22 per share, as the transaction closed prior to the opening of markets on March 31, 2025.

(2) Represented the estimated fair value of additional consideration of up to 740,961 shares of AMD common stock to be issued and up to $300 million of cash to be paid to former ZT Systems stockholders and warrant holders when the contingencies are fully met.

The Company allocated the purchase price to identifiable tangible and intangible assets acquired and liabilities assumed based on estimates of their fair values, which were determined using generally accepted valuation techniques based on estimates and assumptions made by management. The assets and liabilities related to the data center infrastructure manufacturing business (ZT Manufacturing Business), which was divested on October 27, 2025, were classified as held for sale. Fair values of assets and liabilities classified as held for sale were determined using the income and cost valuation approaches, which incorporate significant unobservable inputs. Goodwill was assigned to the Company’s Data Center reporting unit, primarily attributed to the assembled workforce and is not expected to be deductible for income tax purposes.

The Company retained select intellectual property and employees associated with the design operations (ZT Design Business). The results of operations of the ZT Design Business are included in the Company’s continuing operations within the Data Center segment and are not material. The results of operations of the ZT Manufacturing Business are presented as discontinued operations in the Company’s Condensed Consolidated Financial Statements.

The contingent consideration liability was settled in October 2025 with the former ZT shareholders and warrant holders as the contingencies were fully met.

During the measurement period, the Company recorded adjustments to certain assets and liabilities acquired and classified as held for sale, with a corresponding adjustment to goodwill. The adjustments did not have a material impact on the Company’s consolidated results of operations. The purchase price allocation, including measurement period adjustments, is presented below.


(in millions)	Preliminary		Measurement Period Adjustments		As adjusted
Cash and cash equivalents	$	1,500	$	—	$	1,500
Assets held for sale	5,965		54		6,019
Other assets	81		—		81
Total assets acquired	7,546		54		7,600
Liabilities held for sale	3,221		272		3,493
Other liabilities	124		—		124
Total liabilities assumed	3,345		272		3,617
Fair value of net assets acquired	4,201		(218)		3,983
Goodwill	208		218		426
Total purchase consideration	$	4,409	$	—	$	4,409

On October 27, 2025, the Company completed the sale of the ZT Manufacturing Business to Sanmina Corporation (Sanmina) for $2.4 billion in cash, subject to certain purchase price adjustments and 1,151,052 shares of Sanmina common stock. Upon close of the sale, the Company received cash of $1.4 billion, net of cash divested and purchase price adjustments, and shares of Sanmina common stock valued at $154 million. The purchase consideration received is subject to customary post-closing adjustments, including adjustments resulting from measurement period adjustments related to the acquisition of ZT Systems.

The Company is eligible to receive additional cash consideration of up to $450 million to the extent certain conditions are met following the close of the sale through 2028 (Earn-out). The Company applied the loss recovery approach, under which the difference between the fair value of the consideration received, excluding the Earn-out, and the carrying amount of the net assets disposed, is recognized as an earn-out receivable, to the extent it is probable of being received. As of March 28, 2026, the earn-out receivable of $324 million was recorded within Other non-current assets in the Company’s Consolidated Balance Sheets, and is subject to impairment assessment at the end of each reporting period prior to receipt of payment. The Company also entered into a Manufacturing Services Agreement with Sanmina with an initial term of five years.

Pro Forma Information

Since the ZT Manufacturing Business, which represents the majority of ZT Systems’ operations, was classified as held for sale upon acquisition and subsequently sold in October 2025, pro forma information presenting the combined results of operations of ZT Systems and other acquired entities were deemed neither material nor meaningful to the Company’s consolidated income from continuing operations and were omitted.

NOTE 6 – Goodwill and Acquisition-related Intangibles, net

Goodwill

The following table summarizes Goodwill:



(in millions)	Data Center		Embedded		Client and Gaming		Total
December 27, 2025	$	3,690	$	21,072	$	364	$	25,126
Measurement period adjustments relating to acquisitions	218		—		—		218
March 28, 2026	$	3,908	$	21,072	$	364	$	25,344

Acquisition-related Intangibles, net

The following table summarizes Acquisition-related Intangibles Assets:


	March 28, 2026						December 27, 2025
	Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount		Gross Carrying Amount		Accumulated Amortization		Net Carrying Amount
	(In millions)						(In millions)
Developed technology	$	13,599	$	(3,821)	$	9,778	$	13,599	$	(3,560)	$	10,039
Customer relationships	12,324		(6,537)		5,787		12,324		(6,267)		6,057
Product trademarks	914		(325)		589		914		(305)		609
Total acquisition-related intangible assets, net	$	26,837	$	(10,683)	$	16,154	$	26,837	$	(10,132)	$	16,705

Acquisition-related intangible amortization expense was $551 million and $567 million for the three months ended March 28, 2026 and March 29, 2025, respectively.

Based on the carrying value of acquisition-related intangibles recorded as of March 28, 2026, and assuming no subsequent impairment of the underlying assets, the estimated future annual amortization expense for acquisition-related intangibles is as follows:


Fiscal Year	Remainder of 2026		2027		2028		2029		2030		2031 and thereafter		Total
	(In millions)
Future annual amortization	$	1,602	$	2,036	$	1,923	$	1,691	$	1,454	$	7,448	$	16,154

NOTE 7 – Related Party — Equity Joint Ventures

ATMP Joint Ventures

The Company holds a 15% equity interest in two joint ventures (collectively, the ATMP JV) with affiliates of Tongfu Microelectronics Co., Ltd, a Chinese joint stock company. The Company has no obligation to fund the ATMP JV. The Company accounts for its equity interests in the ATMP JV under the equity method of accounting due to its significant influence over the ATMP JV. The carrying value of the Company’s investment in ATMP JV was $182 million and $176 million as of March 28, 2026 and December 27, 2025, respectively, and is recorded within Other non-current assets on the Company’s Consolidated Balance Sheets.

The ATMP JV provides assembly, test, mark and packaging (ATMP) services to the Company. The Company’s purchases from the ATMP JV during the three months ended March 28, 2026 and March 29, 2025 were $718 million and $497 million, respectively. The amounts payable to the ATMP JV were $556 million and $408 million as of March 28, 2026 and December 27, 2025, respectively, and are recorded within Accounts payable on the Company’s Consolidated Balance Sheets.

On October 2024, the Company provided a $100 million term loan to one of the ATMP JVs for general corporate purposes. The loan bears interest at the three months term Secured Overnight Financing Rate (SOFR) plus 35 basis points, payable quarterly and matures on October 16, 2026. The loan and related interest receivable are recorded within Prepaid expenses and other current assets on the Company’s Consolidated Balance Sheets.

During the three months ended March 28, 2026 and March 29, 2025, the Company recorded income related to the ATMP JV of $6 million and $7 million in Equity income in investee on its Consolidated Statement of Operations, respectively.

NOTE 8 – Financial Instruments

Financial Instruments Recorded at Fair Value on a Recurring Basis


	March 28, 2026								December 27, 2025
(In millions)	Level 1		Level 2		Level 3		Total		Level 1		Level 2		Level 3		Total
Cash equivalents
Money market funds	$	640	$	—	$	—	$	640	$	620	$	—	$	—	$	620
Corporate debt securities	—		1,509		—		1,509		—		1,869		—		1,869
U.S. government and agency securities	1,049		798		—		1,847		1,148		300		—		1,448
Non-U.S. government and agency securities	—		100		—		100		—		245		—		245
Time deposits and certificates of deposits	—		92		—		92		—		173		—		173
Short-term investments
Corporate debt securities	—		4,446		—		4,446		—		3,107		—		3,107
U.S. government and agency securities	1,074		1,043		—		2,117		901		718		—		1,619
Non-U.S. government and agency securities	—		161		—		161		—		256		—		256
Time deposits and certificates of deposits	—		11		—		11		—		10		—		10
Asset-backed and mortgage-backed securities	—		21		—		21		—		22		—		22
Marketable equity securities	6		—		—		6		—		—		—		—
Other non-current assets
Long-term investments	169		—		126		295		198		—		202		400
Deferred compensation plan investments	269		—		—		269		257		—		—		257
Total assets measured at fair value	$	3,207	$	8,181	$	126	$	11,514	$	3,124	$	6,700	$	202	$	10,026

Deferred compensation plan investments are primarily mutual fund investments held in a Rabbi trust established to maintain the Company’s executive deferred compensation plan.

The following is a summary of cash equivalents and short-term investments:


	March 28, 2026								December 27, 2025
	Cost/ Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value		Cost/ Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Estimated Fair Value
	(in millions)								(in millions)
Money market funds	$	640	$	—	$	—	$	640	$	620	$	—	$	—	$	620
Corporate debt securities	5,976		1		(22)		5,955		4,974		2		—		4,976
U.S. government and agency securities	3,969		1		(6)		3,964		3,065		2		—		3,067
Non-U.S. government and agency securities	261		—		—		261		501		—		—		501
Time deposits and certificates of deposits	103		—		—		103		183		—		—		183
Asset-backed and mortgage-backed securities	22		—		(1)		21		23		—		(1)		22
Marketable equity securities	6		—		—		6		—		—		—		—
	$	10,977	$	2	$	(29)	$	10,950	$	9,366	$	4	$	(1)	$	9,369

As of March 28, 2026 and December 27, 2025, the Company did not have material available-for-sale debt securities which have been in a continuous unrealized loss position of more than twelve months.

The contractual maturities of available-for-sale debt securities are as follows:


	March 28, 2026				December 27, 2025
	Amortized Cost		Fair Value		Amortized Cost		Fair Value
	(In millions)				(In millions)
Due within 1 year	$	6,998	$	6,996	$	6,528	$	6,528
Due in 1 year through 5 years	3,313		3,288		2,195		2,199
Due in 5 years and later	21		20		23		22
	$	10,332	$	10,304	$	8,746	$	8,749

Financial Instruments Not Recorded at Fair Value

The carrying amounts and estimated fair values of the Company’s current and long-term debt are as follows:


	March 28, 2026				December 27, 2025
	Carrying Amount		Estimated Fair Value		Carrying Amount		Estimated Fair Value
	(In millions)				(In millions)
Current portion of long-term debt, net	$	874	$	877	$	874	$	879
Long-term debt	$	2,350	$	2,209	$	2,348	$	2,246

The estimated fair value of the Company’s long-term debt is based on Level 2 inputs of quoted prices for the Company’s debt and comparable instruments in inactive markets.

The fair value of the Company’s accounts receivable, accounts payable and other short-term obligations approximate their carrying value based on existing terms.

Financial Instruments Measured at Fair Value on a Non-Recurring Basis

Non-marketable equity securities and other instruments primarily include investments in privately held companies with technologies that are typically in early stages of research or development. These investments are recorded within Other non-current assets on the Consolidated Balance Sheets. Gains and losses are recorded in Other income, expense, net on the Consolidated Statements of Operations.

As of March 28, 2026 and December 27, 2025, the Company had long-term investments in non-marketable equity securities of $1.8 billion and $1.1 billion, respectively, which are recorded at estimated fair value based on observable events or adjustments from impairments.

As of March 28, 2026, non-marketable equity investments had cumulative gross unrealized gains of $384 million and cumulative gross unrealized losses and impairments of $52 million. During the three months ended March 28, 2026, the Company recognized gross unrealized gains of $93 million and gross unrealized losses and impairments were not material. As of March 29, 2025, cumulative and quarterly gross unrealized gains, losses and impairments were not material.

Hedging Transactions and Derivative Financial Instruments

Foreign Currency Forward Contracts Designated as Accounting Hedges

The Company enters into foreign currency forward contracts to hedge its exposure to foreign currency exchange rate risk related to future forecasted transactions denominated in currencies other than the U.S. Dollar. These contracts generally mature within 24 months and are designated as accounting hedges. As of March 28, 2026 and December 27, 2025, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $2.9 billion and $2.3 billion, respectively. The fair value of these contracts was not material as of March 28, 2026 and December 27, 2025.

Foreign Currency Forward Contracts Not Designated as Accounting Hedges

The Company also enters into foreign currency forward contracts to reduce the short-term effects of foreign currency fluctuations on certain receivables or payables denominated in currencies other than the U.S. Dollar. These forward contracts generally mature within 3 months and are not designated as accounting hedges. As of March 28, 2026 and December 27, 2025, the notional value of these outstanding contracts was $1.2 billion and $1.1 billion, respectively. The fair value of these contracts was not material as of March 28, 2026 and December 27, 2025.

The cash flows associated with derivative instruments as cash flow hedging instruments are classified in the same category within the Consolidated Statement of Cash Flows as the cash flows of the related items.

Lease Guarantees

As of March 28, 2026, the Company had a maximum gross exposure of $4.1 billion from guarantees issued in connection with certain commercial partner data center lease obligations with a term of up to 15 years. Guarantees typically become payable in the event of a commercial partner’s default and may be issued in exchange for warrants. The exposure decreases over time as contractual lease payments are made to the lessor. Guarantees are recorded as a credit derivative within Other long-term liabilities, with changes in fair value recorded within Other income (expense), net, and were not material to the financial statements.

NOTE 9 – Debt, Revolving Credit Facility and Commercial Paper Program

Debt

The Company’s debt as of March 28, 2026 and December 27, 2025 consisted of the following:


	March 28, 2026		December 27, 2025
	(In millions)
4.212% Senior Notes Due 2026 (4.212% Notes)	$	875	$	875
4.319% Senior Notes Due 2028 (4.319% Notes)	625		625
2.375% Senior Notes Due 2030 (2.375% Notes)	750		750
3.924% Senior Notes Due 2032 (3.924% Notes)	500		500
4.393% Senior Notes Due 2052 (4.393% Notes)	500		500
Total debt (principal amount)	3,250		3,250
Unamortized debt discount and issuance costs	(26)		(28)
Total debt (net)	3,224		3,222
Less: current portion of long-term debt and related unamortized debt issuance costs	(874)		(874)
Total long-term debt (net)	$	2,350	$	2,348

4.212% Senior Notes Due 2026 and 4.319% Senior Notes Due 2028

On March 24, 2025, the Company issued 4.212% Notes and 4.319% Notes in aggregate principal amount of $1.5 billion, which are general unsecured senior obligations of the Company. The interest is payable semi-annually on March 24 and September 24 of each year, commencing on September 24, 2025.

The Company may redeem some or all of the 4.212% Notes prior to September 24, 2026 and the 4.319% Notes prior to February 24, 2028 at a price equal to the greater of the present value of the principal amount and future interest through the maturity of the debt or 100% of the principal amount plus accrued and unpaid interest. On or after February 24, 2028, the Company may also redeem some or all of the 4.319% Notes at 100% of the principal amount plus accrued and unpaid interest.

Holders of the 4.212% Notes and the 4.319% Notes have the right to require the Company to repurchase all or a portion of their notes at 101% of the principal amount plus accrued and unpaid interest if the Company undergoes a change of control. An event of default may also accelerate the maturity of the 4.212% Notes and 4.319% Notes.

2.375% Senior Notes Due 2030, 3.924% Senior Notes Due 2032 and 4.393% Senior Notes Due 2052

The 2.375% Notes, 3.924% Notes and 4.393% Notes are general unsecured senior obligations of the Company with semi-annual fixed interest payments due on June 1 and December 1.

The Company may redeem some or all of the 3.924% Notes and 4.393% Notes prior to March 1, 2032 and December 1, 2051, respectively, at a price equal to the greater of the present value of the principal amount and future interest through the maturity of the 3.924% Notes or 4.393% Notes or 100% of the principal amount plus accrued and unpaid interest. Holders have the right to require the Company to repurchase all or a portion of the 3.924% Notes or 4.393% Notes in the event that the Company undergoes a change of control as defined in the indenture, at a repurchase price of 101% of the principal amount plus accrued and unpaid interest. Additionally, an event of default may result in the acceleration of the maturity of the 3.924% Notes and 4.393% Notes.

As of March 28, 2026, the Company was in compliance with the covenants associated with its notes.

Revolving Credit Facility

The Company has $3.0 billion available under an unsecured revolving credit facility that expires on April 29, 2027. During the three months ended March 28, 2026, the Company did not draw funds from the revolving credit facility. As of March 28, 2026, the Company was in compliance with the covenants under the revolving credit facility.

Commercial Paper

The Company has a commercial paper program under which it can issue unsecured commercial paper notes up to a principal amount of $3.0 billion at any time with maturities of up to 397 days from the date of issue. The commercial paper will be sold at a discount from par or, alternatively, will be sold at par and bear interest at rates that will vary based on market conditions at the time of the issuance. As of March 28, 2026 and December 27, 2025, the Company had no commercial paper outstanding.

NOTE 10 – Commitments and Contingencies

Commitments

The Company’s commitments primarily include the Company’s obligations to purchase wafers, substrates and components from third parties, and future payments related to multi-year cloud service provider (CSP), software, and technology license agreements. The Company continually works with suppliers and partners on the timing of payments and deliveries of commitments, taking into account business conditions. Some cloud service capacity may be reduced, terminated or sold to others by the CSPs, in which case the Company’s commitments will be reduced. The Company expects to utilize the cloud service capacity in its operations or assign the capacity to third parties. These commitments were made under noncancellable purchase orders and contractual obligations requiring minimum commitments for which cancellation would lead to significant penalties.

Total future commitments as of March 28, 2026 were as follows (in millions):


Fiscal Year						Remainder of 2026						2027						2028						2029						2030						2031 and thereafter						Total
Unconditional commitments						$	18,342					$	2,721					$	1,934					$	1,930					$	727					$	8					$	25,662

The Company has also entered into data center and other real estate leases that have not yet commenced. As of March 28, 2026, these leases have aggregate future payments of $4.4 billion and have lease terms of 7 to 10 years. These leases are expected to commence beginning in the second quarter of fiscal year 2026.

Contingencies

During the quarter ended March 28, 2026, there were no material legal proceedings. The Company is a defendant or plaintiff in various actions that arose in the normal course of business. With respect to these matters, based on management’s current knowledge, the Company believes that the amount or range of reasonably possible loss, if any, will not, either individually or in the aggregate, have a material adverse effect on the Company’s financial position, results of operations, or cash flows.

NOTE 11 – Earnings Per Share

The following table sets forth the components of basic and diluted earnings per share:


	Three Months Ended
		March 28, 2026		March 29, 2025
		(In millions, except per share amounts)
Numerator
Income from continuing operations		$	1,372	$	709
Income from discontinued operations		11		—
Net income		$	1,383	$	709

Denominator
Basic weighted average shares		1,631		1,620
Potentially dilutive shares from employee equity plans		19		6
Diluted weighted average shares		1,650		1,626

Earnings per share:
Basic earnings from continuing operations		$	0.84	$	0.44
Basic earnings from discontinued operations		0.01		—
Basic earnings per share		$	0.85	$	0.44

Diluted earnings from continuing operations		$	0.83	$	0.44
Diluted earnings from discontinued operations		0.01		—
Diluted earnings per share		$	0.84	$	0.44

Securities which would have been anti-dilutive are not material and are excluded from the computation of diluted earnings per share for all periods presented.

NOTE 12 – Common Stock and Stock-based Compensation

Common Stock

Shares of common stock outstanding were as follows:


	Three Months Ended
		March 28, 2026	March 29, 2025
		(In millions)
Balance, beginning of period		1,630	1,622
Common stock issued under employee equity plans		2	1
Common stock repurchases for tax withholding on equity awards		(1)	—
Repurchases of common stock		(1)	(7)
Balance, end of period		1,630	1,616

Stock Repurchase Program

The Company has a stock repurchase program (Repurchase Program) with total repurchase authority of $14 billion. During the three months ended March 28, 2026, the Company repurchased 1.1 million shares of its common stock under the Repurchase Program for $221 million. The repurchased amounts do not include the 1% excise tax on stock repurchases enacted by the Inflation Reduction Act of 2022. As of March 28, 2026, $9.2 billion remained available for future stock repurchases under the Repurchase Program. The Repurchase Program does not obligate the Company to acquire any common stock, has no termination date and may be suspended or discontinued at any time.

Warrants

In October 2025 and February 2026, the Company issued warrants to OpenAI OpCo, LLC (OpenAI) and Meta Platforms, Inc. (Meta) (the OpenAI Warrant and the Meta Warrant, respectively). Each warrant provides the holder the right to purchase up to an aggregate of 160 million shares of the Company’s common stock at an exercise price of $0.01 per share. The warrants vest in tranches based on AMD Instinct GPU purchase milestones achieved by OpenAI, Meta, their affiliates, or indirectly through authorized third parties, and achievement of specified Company stock price targets. The vesting of the OpenAI Warrant also includes the achievement of stock‑performance thresholds. Each vested tranche is further subject to the fulfillment of certain other technical and commercial conditions prior to exercisability. Subject to the terms of the warrants, the OpenAI Warrant is exercisable through October 5, 2030 and the Meta Warrant is exercisable through February 23, 2031. As of March 28, 2026, and as of December 27, 2025 with respect to the OpenAI Warrant only, none of the warrant shares had vested or become exercisable. Accordingly, the warrants did not have an impact on the Company’s financial statements for the periods ended March 28, 2026 and, with respect to the OpenAI Warrant only, December 27, 2025. The Company will account for the warrants as a liability until certain conditions for equity classification are satisfied.

Stock-based Compensation

Stock-based compensation expense recorded in the Consolidated Statements of Operations was as follows:


	Three Months Ended
		March 28, 2026		March 29, 2025
		(In millions)
Cost of sales		$	8	$	5
Research and development		387		282
Marketing, general and administrative		92		77
Total		$	487	$	364

NOTE 13 – Income Taxes

The Company determines its income taxes for interim reporting periods by applying the Company’s estimated annual effective tax rate to the year-to-date results, adjusted for tax items discrete to each period.

Continuing Operations

For the three months ended March 28, 2026, the Company recorded an income tax provision from continuing operations of $238 million representing an effective tax rate of 14.8%. The difference between the U.S. federal statutory tax rate of 21% and the Company’s estimated annual effective tax rate was primarily due to the income tax benefit from foreign-derived deduction eligible income (FDDEI), formerly FDII, and research and development (R&D) tax credits.

For the three months ended March 29, 2025, the Company recorded an income tax provision from continuing operations of $123 million representing an effective tax rate of 14.8%. The difference between the U.S. federal statutory tax rate of 21% and the Company's estimated annual effective tax rate was primarily due to the income tax benefit from foreign-derived intangible income (FDII) and research and development (R&D) tax credits, partially offset by the tax rate detriment from foreign earnings.

As of March 28, 2026 and December 27, 2025, the Company had long-term income tax liabilities related to unrecognized tax benefits, which included interest and penalties, of $833 million and $806 million, respectively, recorded under Other long-term liabilities in the Company’s Consolidated Balance Sheets.

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