AMD announced its second-quarter financial results for fiscal year 6, ending June 28th. Revenue reached $2025 billion, a 76.85% increase year-over-year and a 32% increase quarter-over-quarter, setting a new record. However, due to declining gross profit margins and increased costs, the company's operating performance turned negative, demonstrating continued pressure from multiple market challenges.
Calculated on a non-GAAP basis, AMD's operating profit in the second quarter was US$8.97 million, a decrease of 29% year-on-year and a quarterly decrease of 50%. Its operating profit margin was 12%, and its net profit was US$7.81 million, a decrease of 31% year-on-year and a quarterly decrease of 50%.
AMD's gross profit this quarter was US$30.59 billion, and the gross profit margin dropped to 40% due to increased related costs, a 9% decrease from the same period last year and a 10% decrease from the previous quarter. The operating loss reached US$1.34 million, compared with an operating profit of US$2.69 million in the same period last year and a profit of US$8.06 million in the previous quarter, indicating that profitability is under pressure in the near term.
Data center revenue grew, but overall losses were recorded
AMD's data center business revenue reached $32 billion in the second quarter, a 14% increase year-over-year, primarily driven by growing demand for its EPYC processors. However, limited sales of its Instinct MI308 accelerator in China impacted overall performance. This resulted in an operating loss of $1.55 million for the division, a significant improvement from the $9.32 million loss in the same period last year, but still far from profitability.
Client and gaming businesses saw substantial growth
Client segment revenue reached $25 billion, a 67% year-over-year increase, primarily driven by demand for Zen 5-based Ryzen desktop processors and product line expansion. Gaming segment revenue reached $11 billion, a 73% year-over-year increase, primarily driven by increased semi-custom business and Radeon GPU sales. These combined revenue generated $7.67 million in operating profit, up from $5 million in the same period last year.
Embedded business declined slightly
The embedded division's revenue was $8.24 million, down 4% from last year, reflecting continued instability in end-market demand, but the division still maintained an operating profit of $2.75 million.
Financial Status and Outlook
AMD generated $11.8 billion in free cash flow this quarter, with costs and expenses reaching $2.82 million. Cash and short-term investments totaled $58.67 billion, down from $73.1 billion in the same period last year. AMD projects revenue for the third quarter of fiscal 2025 to be approximately $87 billion (plus or minus $3 million), indicating management remains cautiously optimistic about second-half revenue.
