AMD reported first-quarter revenue of $10.3 billion on Monday, up 38% from a year earlier, as demand for AI accelerators and server processors drove growth across the business.

Net income reached $1.4 billion, up 95% year over year, with diluted earnings per share of $0.84. On a non-GAAP basis, net income was $2.3 billion and diluted earnings per share was $1.37, compared with $0.96 in the same quarter last year, the company said.

The data center segment was the largest contributor, generating $5.8 billion in revenue — up 57% year over year — driven by demand for AMD EPYC processors and continued shipments of AMD Instinct GPUs. The client and gaming segment produced $3.6 billion in revenue, up 23% year over year, while the embedded segment brought in $873 million, up 6%.

Free cash flow reached $2.6 billion in the quarter, compared with $727 million in the first quarter of 2025, the company said.

“We delivered an outstanding first quarter, driven by accelerating demand for AI infrastructure, with Data Center now the primary driver of our revenue and earnings growth,” AMD chair and CEO Lisa Su said in a statement. “We are seeing strong momentum as inferencing and agentic AI drive increasing demand for high-performance CPUs and accelerators.”

CFO Jean Hu said in a statement that the results reflected “record quarterly free cash flow” and “continued momentum and execution across the business.”

For the second quarter of 2026, AMD said it expects revenue of about $11.2 billion, plus or minus $300 million — representing year-over-year growth of about 46% and a sequential increase of about 9%. Non-GAAP gross margin is expected to be about 56%.

Among recent business developments, Meta and AMD announced plans to deploy up to 6 gigawatts of AMD Instinct GPUs, with the first 1-gigawatt deployment to be powered by a custom AMD Instinct MI450-based GPU, according to AMD. Meta will also be a lead customer for AMD’s upcoming 6th Gen EPYC CPUs. AMD also said it is collaborating with Samsung on next-generation AI memory technologies, including HBM4 supply for AMD Instinct MI455X GPUs.

AMD said customer engagement around its MI450 Series and Helios rack-scale AI platform is strengthening, with leading customer forecasts exceeding the company’s initial expectations.