Item 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Operations

(Unaudited)

			Three Months Ended												Six Months Ended
			June 27, 2026						June 28, 2025						June 27, 2026						June 28, 2025
			(In millions, except per share amounts)
Net revenue			$	11,536					$	7,685					$	21,789					$	15,123
Cost of sales			5,073						4,366						9,649						7,817
Amortization of acquisition-related intangibles			260						260						521						511
Total cost of sales			5,333						4,626						10,170						8,328
Gross profit			6,203						3,059						11,619						6,795
Research and development			2,528						1,894						4,925						3,622
Marketing, general and administrative			1,401						991						2,654						1,877
Amortization of acquisition-related intangibles			284						308						574						624
Total operating expenses			4,213						3,193						8,153						6,123
Operating income (loss)			1,990						(134)						3,466						672
Interest expense			(37)						(38)						(74)						(58)
Other income (expense), net			598						98						763						137
Income (loss) from continuing operations before income taxes and equity income			2,551						(74)						4,155						751
Income tax provision (benefit)			252						(834)						490						(711)
Equity income in investee			6						8						12						15
Income from continuing operations, net of tax			2,305						768						3,677						1,477
Income (loss) from discontinued operations, net of tax			(8)						104						3						104
Net income			$	2,297					$	872					$	3,680					$	1,581
Earnings per share
Basic earnings from continuing operations			$	1.41					$	0.47					$	2.25					$	0.91
Basic earnings (loss) from discontinued operations			(0.01)						0.07						0.01						0.07
Basic earnings per share			$	1.40					$	0.54					$	2.26					$	0.98
Diluted earnings from continuing operations			$	1.39					$	0.47					$	2.22					$	0.91
Diluted earnings (loss) from discontinued operations			(0.01)						0.07						—						0.06
Diluted earnings per share			$	1.38					$	0.54					$	2.22					$	0.97
Shares used in per share calculation
Basic			1,632						1,623						1,631						1,621
Diluted			1,659						1,630						1,655						1,628

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Comprehensive Income

(Unaudited)

			Three Months Ended												Six Months Ended
			June 27, 2026						June 28, 2025						June 27, 2026						June 28, 2025
			(In millions)
Net income			$	2,297					$	872					$	3,680					$	1,581
Other comprehensive income, net of tax:
Net change in unrealized gains (losses) on cash flow hedges			(1)						50						(44)						76
Net change in unrealized gains (losses) on available-for-sale securities			(1)						—						(27)						3
Total comprehensive income			$	2,295					$	922					$	3,609					$	1,660

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Balance Sheets

(Unaudited)

			June 27, 2026						December 27, 2025
			(In millions, except par value amounts)
ASSETS
Current assets:
Cash and cash equivalents			$	5,086					$	5,539
Short-term investments			8,025						5,013
Accounts receivable, net			7,281						6,315
Inventories			8,468						7,920
Prepaid expenses and other current assets			2,662						2,160
Total current assets			31,522						26,947
Property and equipment, net			3,439						2,312
Goodwill			25,470						25,126
Acquisition-related intangibles, net			15,635						16,705
Deferred tax assets			494						384
Other non-current assets			7,904						5,452
Total assets			$	84,464					$	76,926
LIABILITIES AND STOCKHOLDERS’ EQUITY
Current liabilities:
Accounts payable			$	5,359					$	2,929
Accrued liabilities			5,546						5,250
Current portion of long-term debt, net			875						874
Other current liabilities			301						402
Total current liabilities			12,081						9,455
Long-term debt, net			2,351						2,348
Long-term operating lease liabilities			1,050						625
Deferred tax liabilities			300						313
Other long-term liabilities			1,458						1,186
Commitments and contingencies (See Note 10)
Stockholders’ equity:
Capital stock:
Common stock, par value $0.01; shares authorized: 4,000; shares issued: 1,632 and 1,695; shares outstanding: 1,632 and 1,630			16						17
Additional paid-in capital			61,373						63,365
Treasury stock, at cost (shares held: — and 65)			—						(7,079)
Retained earnings			5,909						6,699
Accumulated other comprehensive loss			(74)						(3)
Total stockholders’ equity			67,224						62,999
Total liabilities and stockholders’ equity			$	84,464					$	76,926

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

			Six Months Ended
			June 27, 2026						June 28, 2025
			(In millions)
Cash flows from operating activities:
Net income			$	3,680					$	1,581
Income from discontinued operations, net of tax			(3)						(104)
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization			427						364
Amortization of acquisition-related intangibles			1,095						1,135
Stock-based compensation			990						733
Gains from long-term investments, net			(549)						(36)
Deferred income taxes			(106)						(1,053)
Other			61						65
Changes in operating assets and liabilities:
Accounts receivable, net			(966)						1,078
Inventories			(548)						(943)
Prepaid expenses and other assets			(991)						(377)
Accounts payable			2,170						547
Accrued and other liabilities			61						(589)
Net cash provided by operating activities of continuing operations			5,321						2,401
Net cash provided by operating activities of discontinued operations			—						549
Net cash provided by operating activities			5,321						2,950
Cash flows from investing activities:
Purchases of property and equipment			(1,197)						(494)
Purchases of short-term investments			(4,555)						(796)
Proceeds from maturity of short-term investments			1,267						683
Proceeds from sale of short-term investments			286						48
Purchases of long-term investments			(844)						(358)
Acquisitions, net of cash acquired			(129)						(1,716)
Net cash used in investing activities of continuing operations			(5,172)						(2,633)
Purchases of property and equipment			—						(22)
Payment for working capital adjustment on divestiture			(243)						—
Net cash used in investing activities of discontinued operations			(243)						(22)
Net cash used in investing activities			(5,415)						(2,655)
Cash flows from financing activities:
Proceeds from debt and commercial paper issuance, net of issuance costs			—						2,441
Repayment of debt and commercial paper			—						(950)
Proceeds from sales of common stock through employee equity plans			205						159
Repurchases of common stock			(221)						(1,227)
Stock repurchases for tax withholding on employee equity plans			(341)						(76)
Other			(8)						—
Net cash provided by (used in) financing activities of continuing operations			(365)						347
Net increase (decrease) in cash, cash equivalents and restricted cash			(459)						642
Cash, cash equivalents and restricted cash at beginning of period			5,556						3,811
Cash, cash equivalents and restricted cash at end of period			$	5,097					$	4,453

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Cash Flows

(Unaudited)

			Six Months Ended
			June 27, 2026						June 28, 2025
			(In millions)
Supplemental cash flow information:
Cash paid during the period for:
Income taxes, net of refunds			$	777					$	760
Non-cash investing and financing activities:
Purchases of property and equipment, accrued but not paid			$	421					$	333
Reissuance of treasury stock for acquisitions			$	—					$	860
Contingent consideration liability for acquisitions			$	—					$	361
Non-cash lease activities:
Operating lease right-of-use assets acquired by assuming related liabilities			$	514					$	231
Reconciliation of cash, cash equivalents and restricted cash
Cash and cash equivalents			$	5,086					$	4,442
Restricted cash included in Prepaid expenses and other current assets			11						11
Cash, cash equivalents and restricted cash at end of period			$	5,097					$	4,453

See accompanying notes.

Advanced Micro Devices, Inc.

Condensed Consolidated Statements of Stockholders’ Equity

(Unaudited)

			Three Months Ended												Six Months Ended
			June 27, 2026						June 28, 2025						June 27, 2026						June 28, 2025
			(In millions)
Capital stock:
Common stock, par value
Balance, beginning of period			$	17					$	17					$	17					$	17
Retirement of treasury stock			(1)						—						(1)						—
Balance, end of period			$	16					$	17					$	16					$	17
Additional paid-in capital
Balance, beginning of period			$	63,856					$	61,730					$	63,365					$	61,362
Common stock issued under employee equity plans			199						157						203						161
Stock-based compensation			503						369						990						733
Reissuance of treasury stock			—						(28)						—						(28)
Retirement of treasury stock			(3,185)						—						(3,185)						—
Balance, end of period			$	61,373					$	62,228					$	61,373					$	62,228
Treasury stock
Balance, beginning of period			$	(7,421)					$	(6,899)					$	(7,079)					$	(6,106)
Repurchases of common stock			—						(480)						(221)						(1,236)
Common stock repurchases for tax withholding on employee equity plans			(234)						(44)						(355)						(81)
Reissuance of treasury stock			—						888						—						888
Retirement of treasury stock			7,655						—						7,655						—
Balance, end of period			$	—					$	(6,535)					$	—					$	(6,535)
Retained earnings:
Balance, beginning of period			$	8,082					$	3,073					$	6,699					$	2,364
Net income			2,297						872						3,680						1,581
Retirement of treasury stock			(4,470)						—						(4,470)						—
Balance, end of period			$	5,909					$	3,945					$	5,909					$	3,945
Accumulated other comprehensive income (loss):
Balance, beginning of period			$	(72)					$	(40)					$	(3)					$	(69)
Other comprehensive income (loss)			(2)						50						(71)						79
Balance, end of period			$	(74)					$	10					$	(74)					$	10
Total stockholders' equity			$	67,224					$	59,665					$	67,224					$	59,665

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), data processing units (DPUs), AI Network Interface Cards (AI NICs), Field Programmable Gate Arrays (FPGAs), Adaptive System-on-Chip (SoC) products, chipsets, embedded processors, semi-custom SoC products, microprocessor and SoC development services and technology and System on Modules (SOMs). 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 and six months ended June 27, 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 and six months ended June 27, 2026 and June 28, 2025 each consisted of 13 and 26 weeks, respectively.

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.

Prior Period Reclassification. Certain amounts in prior period were reclassified to conform to current period presentation.

NOTE 3 – Supplemental Financial Statement Information

Inventories			June 27, 2026						December 27, 2025
			(In millions)
Raw materials			$	946					$	909
Work in process			5,265						4,768
Finished goods			2,257						2,243
Total inventories			$	8,468					$	7,920

Property and Equipment, net			June 27, 2026						December 27, 2025
			(In millions)
Land, building and leasehold improvements			$	1,068					$	967
Equipment			4,127						3,453
Construction in progress			1,148						508
Property and equipment, gross			6,343						4,928
Accumulated depreciation			(2,904)						(2,616)
Total property and equipment, net			$	3,439					$	2,312

Accrued Liabilities			June 27, 2026						December 27, 2025
			(In millions)
Customer-related liabilities			$	1,359					$	1,194
Accrued marketing programs			1,579						1,454
Accrued compensation and benefits			1,462						1,645
Other accrued expenses and liabilities			1,146						957
Total accrued liabilities			$	5,546					$	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 June 27, 2026, the aggregate transaction price allocated to remaining performance obligations under contracts with an original expected duration of more than one year was $222 million, of which $144 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% of the Company’s revenue for the three and six months ended June 27, 2026, and 12% and 11% of the Company’s revenue for the three and six months ended June 28, 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												Six Months Ended
			June 27, 2026						June 28, 2025						June 27, 2026						June 28, 2025
			(In millions)
Net revenue:
Data Center			$	6,718					$	3,240					$	12,493					$	6,914
Client and Gaming
Client			3,062						2,499						5,947						4,793
Gaming			779						1,122						1,499						1,769
Total Client and Gaming			3,841						3,621						7,446						6,562
Embedded			977						824						1,850						1,647
Total net revenue			$	11,536					$	7,685					$	21,789					$	15,123
Cost of sales and operating expenses:
Data Center			$	4,615					$	3,395					$	8,791					$	6,137
Client and Gaming			3,259						2,854						6,289						5,299
Embedded			591						549						1,126						1,044
All other			1,081						1,021						2,117						1,971
Total cost of sales and operating expenses			$	9,546					$	7,819					$	18,323					$	14,451
Operating income (loss):
Data Center			$	2,103					$	(155)					$	3,702					$	777
Client and Gaming			582						767						1,157						1,263
Embedded			386						275						724						603
All other (1)			(1,081)						(1,021)						(2,117)						(1,971)
Total operating income (loss)			$	1,990					$	(134)					$	3,466					$	672

(1)			For the three and six months ended June 27, 2026, all other operating losses primarily included $544 million and $1.1 billion of amortization of acquisition-related intangibles, and $503 million and $990 million of stock-based compensation expense, respectively. For the three and six months ended June 28, 2025, all other operating losses primarily included $568 million and $1.1 billion of amortization of acquisition-related intangibles, and $369 million and $733 million of stock-based compensation expense, respectively.

NOTE 5 – Acquisitions and Divestitures

ZT Systems Acquisition and ZT Manufacturing Business Divestiture

In March 2025, the Company completed the acquisition of ZT Group Int’l, Inc. (ZT Systems), a provider of AI and general-purpose compute infrastructure for hyperscale computing companies, for total purchase consideration of $4.4 billion, consisting of $3.2 billion in cash, $860 million in shares of AMD common stock and $361 million of contingent consideration. The contingent consideration was settled in October 2025 upon full satisfaction of the applicable contingencies. The acquisition supports the Company’s ability 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 Company retained select intellectual property and employees associated with the design operations, and the results of which are included in the Data Center segment within continuing operations and are not material. Goodwill, assigned to the Data Center reporting unit and primarily attributed to assembled workforce, is not deductible for income tax purposes. The data center infrastructure manufacturing business (ZT Manufacturing Business) was classified as held for sale upon acquisition and was divested in October 2025, and its results are presented as discontinued operations.

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

In October 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. During the three months ended June 27, 2026, the Company made a payment of $243 million related to customary post-closing net working capital adjustments, including adjustments resulting from measurement period adjustments related to the acquisition of ZT Systems.

The Company is also 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 June 27, 2026, the earn-out receivable of $348 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.

Since the ZT Manufacturing Business was classified as held for sale upon acquisition and sold in October 2025, pro forma combined results were deemed immaterial and omitted.

Other Acquisitions

For the periods presented, the Company also completed acquisitions that were immaterial both individually and in aggregate.

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 related to prior acquisitions			218						—						—						218
Current period acquisitions			126						—						—						126
June 27, 2026			$	4,034					$	21,072					$	364					$	25,470

Acquisition-related Intangibles, net

The following table summarizes Acquisition-related Intangibles Assets:

			June 27, 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			$	13,624					$	(4,082)					$	9,542					$	13,599					$	(3,560)					$	10,039
Customer relationships			12,324						(6,801)						5,523						12,324						(6,267)						6,057
Product trademarks			914						(344)						570						914						(305)						609
Total acquisition-related intangible assets, net			$	26,862					$	(11,227)					$	15,635					$	26,837					$	(10,132)					$	16,705

Acquisition-related intangible amortization expense was $544 million and $1.1 billion for the three and six months ended June 27, 2026, respectively. Acquisition-related intangible amortization expense was $568 million and $1.1 billion for the three and six months ended June 28, 2025, respectively.

Based on the carrying value of acquisition-related intangibles recorded as of June 27, 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			$	1,062					$	2,042					$	1,929					$	1,697					$	1,457					$	7,448					$	15,635

NOTE 7 – Equity Method Investments

The Company has investments accounted for under the equity method, which are considered related parties. The carrying value of the Company’s investments accounted for under the equity method was $302 million and $176 million as of June 27, 2026 and December 27, 2025, respectively, and is recorded within Other non-current assets on the Company’s Consolidated Balance Sheets. The Company has no obligation to fund these investees.

The Company’s transactions with these related parties consist primarily of assembly, test, mark and packaging (ATMP) services provided in the ordinary course of business. Purchases from related parties during the three and six months ended June 27, 2026 were $594 million and $1.2 billion, respectively, and during the three and six months ended June 28, 2025 were $529 million and $1.0 billion, respectively. Amounts payable to related parties were $569 million and $408 million as of June 27, 2026 and December 27, 2025, respectively, and are recorded within Accounts payable on the Company’s Consolidated Balance Sheets. The Company also has a $100 million term loan receivable outstanding from one of the investees as of June 27, 2026 and December 27, 2025, bearing interest at a variable rate plus a margin payable quarterly and maturing in October 2026, recorded with related interest receivable within Prepaid expenses and other current assets on the Company’s Consolidated Balance Sheets.

Equity income from these investees, recorded in Equity income in investee on the Company’s Consolidated Statements of Operations, was not material for the three and six months ended June 27, 2026 and the three and six months ended June 28, 2025.

NOTE 8 – Financial Instruments

Financial Instruments Recorded at Fair Value on a Recurring Basis

			June 27, 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			$	752					$	—					$	—					$	752					$	620					$	—					$	—					$	620
Corporate debt securities			—						1,049						—						1,049						—						1,869						—						1,869
U.S. government and agency securities			250						1,074						—						1,324						1,148						300						—						1,448
Non-U.S. government and agency securities			—						134						—						134						—						245						—						245
Time deposits and certificates of deposits			—						142						—						142						—						173						—						173
Short-term investments
Corporate debt securities			—						5,354						—						5,354						—						3,107						—						3,107
U.S. government and agency securities			1,333						1,113						—						2,446						901						718						—						1,619
Non-U.S. government and agency securities			—						119						—						119						—						256						—						256
Time deposits and certificates of deposits			—						86						—						86						—						10						—						10
Asset-backed and mortgage-backed securities			—						20						—						20						—						22						—						22
Other non-current assets
Long-term investments			1,194						—						26						1,220						198						—						202						400
Deferred compensation plan investments			312						—						—						312						257						—						—						257
Total assets measured at fair value			$	3,841					$	9,091					$	26					$	12,958					$	3,124					$	6,700					$	202					$	10,026

Long-term investments primarily consist of equity investments in previously non-marketable equity securities that became publicly traded during the second quarter of fiscal year 2026 and were reclassified to Level 1 upon the availability of quoted market prices. As of June 27, 2026, net unrealized gains from marketable equity securities were $425 million and were not material as of December 27, 2025.

As of June 27, 2026 and December 27, 2025, long-term investments include $1.1 billion and $178 million, respectively, of aggregate fair value of marketable equity securities which are subject to time-based contractual sale restrictions that expire through October 2028.

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:

			June 27, 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			$	752					$	—					$	—					$	752					$	620					$	—					$	—					$	620
Corporate debt securities			6,423						1						(21)						6,403						4,974						2						—						4,976
U.S. government and agency securities			3,778						—						(8)						3,770						3,065						2						—						3,067
Non-U.S. government and agency securities			253						—						—						253						501						—						—						501
Time deposits and certificates of deposits			228						—						—						228						183						—						—						183
Asset-backed and mortgage-backed securities			21						—						(1)						20						23						—						(1)						22
			$	11,455					$	1					$	(30)					$	11,426					$	9,366					$	4					$	(1)					$	9,369

As of June 27, 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:

			June 27, 2026												December 27, 2025
			Amortized Cost						Fair Value						Amortized Cost						Fair Value
			(In millions)												(In millions)
Due within 1 year			$	6,679					$	6,677					$	6,528					$	6,528
Due in 1 year through 5 years			4,004						3,978						2,195						2,199
Due in 5 years and later			20						19						23						22
			$	10,703					$	10,674					$	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:

			June 27, 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			$	875					$	876					$	874					$	879
Long-term debt			$	2,351					$	2,225					$	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 June 27, 2026 and December 27, 2025, the Company had long-term investments in non-marketable equity securities of $1.7 billion and $1.1 billion, respectively, which are recorded at estimated fair value based on observable events or adjustments from impairments.

As of June 27, 2026, non-marketable equity investments had cumulative gross unrealized gains of $118 million. The cumulative and gross unrealized losses and impairments were not material for the period ended June 27, 2026. Gross unrealized gains, impairment losses and gross unrealized losses were not material during the three and six months ended June 28, 2025.

Subsequent to June 27, 2026, the Company entered into investment commitments of up to $5.0 billion, subject to certain contingencies, which are expected to be made through fiscal year 2028.

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 June 27, 2026 and December 27, 2025, the notional value of the Company’s outstanding foreign currency forward contracts designated as cash flow hedges was $3.2 billion and $2.3 billion, respectively. The fair value of these contracts, on a gross basis, was not material as of June 27, 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 June 27, 2026 and December 27, 2025, the notional value of these outstanding contracts was $1.6 billion and $1.1 billion, respectively. The fair value of these contracts, on a gross basis, was not material as of June 27, 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 June 27, 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 terms 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 lessors. 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 June 27, 2026 and December 27, 2025 consisted of the following:

			June 27, 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			(24)						(28)
Total debt (net)			3,226						3,222
Less: current portion of long-term debt and related unamortized debt issuance costs			(875)						(874)
Total long-term debt (net)			$	2,351					$	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 2.375% Notes, 3.924% Notes and 4.393% Notes prior to March 1, 2030, 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 2.375% Notes, 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 2.375% Notes, 3.924% Notes and 4.393% Notes.

As of June 27, 2026, the Company was in compliance with the covenants associated with its notes.

Revolving Credit Facility

In May 2026, the Company entered into a five-year, $5.0 billion unsecured revolving credit facility (the Revolving Facility), replacing its prior $3.0 billion revolving credit facility entered into in April 2022. Under the Revolving Facility, the Company can borrow, repay, and reborrow at any time prior to the earlier of the fifth anniversary of the Revolving Facility and termination of commitments. Up to $250 million of the Revolving Facility may be used for the issuance of letters of credit, which reduces the aggregate amount otherwise available for revolving loans. Borrowings under the Revolving Facility bear interest at variable market rates based on prevailing short‑term market benchmarks, plus an applicable margin based on the Company's credit ratings. The Revolving Facility also requires payment of customary fees, including a commitment fee on unused commitments. As of June 27, 2026, the Company was in compliance with the covenants under the Revolving Facility. As of June 27, 2026 and December 27, 2025, the Company had no outstanding balance under its Revolving Facility.

Commercial Paper

The Company has a commercial paper program under which it can issue unsecured commercial paper notes. In May 2026, the Company increased to $5.5 billion, from $3.0 billion, the maximum aggregate amount outstanding at any time of unsecured commercial paper notes which the Company may issue on a private placement basis under the commercial paper program. The Company can issue unsecured commercial paper notes 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 June 27, 2026 and December 27, 2025, the Company had no commercial paper outstanding.

NOTE 10 – Commitments and Contingencies

Commitments

The Company’s commitments primarily include obligations to purchase wafers, substrates and components from third parties, as well as commitments for multi-year cloud compute capacity arrangements with cloud service providers (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. Cloud compute 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 compute 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 June 27, 2026 were as follows (in millions):

Fiscal Year						Remainder of 2026						2027						2028						2029						2030						2031 and thereafter						Total
Unconditional commitments						$	17,386					$	5,474					$	2,851					$	2,528					$	1,471					$	566					$	30,276

The Company has also entered into data center and other real estate leases that have not yet commenced. As of June 27, 2026, these leases have aggregate future payments of $4.5 billion and have lease terms of 6 to 11 years. These leases are expected to commence beginning in the second half of fiscal year 2026. Subsequent to June 27, 2026, the Company entered into long-term data center leases with aggregate future payments of $9.5 billion over lease terms of up to 16 years and these leases are expected to commence in 2027 and 2028.

Contingencies

During the quarter ended June 27, 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												Six Months Ended
			June 27, 2026						June 28, 2025						June 27, 2026						June 28, 2025
			(In millions, except per share amounts)
Numerator
Income from continuing operations			$	2,305					$	768					$	3,677					$	1,477
Income (loss) from discontinued operations			(8)						104						3						104
Net income			$	2,297					$	872					$	3,680					$	1,581
Denominator
Basic weighted average shares			1,632						1,623						1,631						1,621
Potentially dilutive shares from employee equity plans			27						7						24						7
Diluted weighted average shares			1,659						1,630						1,655						1,628
Earnings per share:
Basic earnings from continuing operations			$	1.41					$	0.47					$	2.25					$	0.91
Basic earnings (loss) from discontinued operations			(0.01)						0.07						0.01						0.07
Basic earnings per share			$	1.40					$	0.54					$	2.26					$	0.98
Diluted earnings from continuing operations			$	1.39					$	0.47					$	2.22					$	0.91
Diluted earnings (loss) from discontinued operations			(0.01)						0.07						—						0.06
Diluted earnings per share			$	1.38					$	0.54					$	2.22					$	0.97

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												Six Months Ended
			June 27, 2026						June 28, 2025						June 27, 2026						June 28, 2025
			(In millions)
Balance, beginning of period			1,630						1,616						1,630						1,622
Common stock issued under employee equity plans			3						3						4						4
Common stock repurchases for tax withholding on equity awards			(1)						—						(1)						—
Repurchases of common stock			—						(5)						(1)						(12)
Common stock issued in the acquisition of ZT Systems			—						8						—						8
Balance, end of period			1,632						1,622						1,632						1,622

Treasury Stock

During the three months ended June 27, 2026, the Company retired 66.9 million of treasury shares, which returned to the status of authorized but unissued shares. The excess of purchase price over par value was allocated between additional paid-in capital and retained earnings.

Stock Repurchase Program

The Company has a stock repurchase program (Repurchase Program) with total repurchase authority of $14 billion. During the six months ended June 27, 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 June 27, 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), each entitling the holder the right to purchase up to 160 million shares of the Company’s common stock at an exercise price of $0.01 per share (the OpenAI Warrant and the Meta Warrant, respectively). The warrants vest in tranches based on specified AMD InstinctTM GPU purchase milestones by OpenAI, Meta, their affiliates, or indirectly through authorized third-parties and achievement of specified stock price targets. The vesting of the OpenAI Warrant is also subject to stock‑performance thresholds. Each vested tranche is further subject to additional technical and commercial conditions before becoming exercisable. The OpenAI Warrant and Meta Warrant is exercisable through October 5, 2030 and February 23, 2031, respectively. The warrants will be classified as liabilities until certain conditions for equity classification are met. As of June 27, 2026, no warrant shares had vested or become exercisable, and the warrants had no impact on the Condensed Consolidated Financial Statements for the three and six months ended June 27, 2026.

Stock-based Compensation

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

			Three Months Ended												Six Months Ended
			June 27, 2026						June 28, 2025						June 27, 2026						June 28, 2025
			(In millions)
Cost of sales			$	8					$	6					$	16					$	11
Research and development			392						290						779						572
Marketing, general and administrative			103						73						195						150
Total			$	503					$	369					$	990					$	733

On May 13, 2026, the Company amended and restated its 2023 Equity Incentive Plan (the Plan), increasing the authorized shares for issuance under the Plan by 65 million to a total of 153 million shares of common stock. As of June 27, 2026, 107 million shares remain available for issuance under the Plan.

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 and six months ended June 27, 2026, the Company recorded an income tax provision from continuing operations of $252 million and $490 million representing an effective tax rate of 9.8% and 11.8%, respectively. 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), and research and development (R&D) tax credits.

For the three and six months ended June 28, 2025, the Company recorded an income tax benefit from continuing operations of $834 million and $711 million representing an effective tax rate of 1,263.6% and (92.8)%, respectively. The tax benefit for the three and six months ended June 28, 2025 reflected a discrete tax benefit of $792 million and $781 million, respectively, primarily due to a tax benefit of $853 million related to the release of uncertain tax positions pertaining to the reasonable cause relief for dual consolidated losses approved by the Internal Revenue Service (IRS) in April 2025, partially offset by other items, including deferred tax expense associated with the expected gain on the transfer of appreciated assets related to the acquisition of ZT Systems.

As of June 27, 2026 and December 27, 2025, the Company had long-term income tax liabilities related to unrecognized tax benefits, which included interest and penalties, of $873 million and $806 million, respectively, recorded under Other long-term liabilities in the Company’s Consolidated Balance Sheets.