AMD · Q2 FY2026
ADVANCED MICRO DEVICES INC Q2 FY2026 earnings analysis
By SageNoodle ResearchNeutral
| Metric | Actual | Estimate | Result |
|---|---|---|---|
| Revenue | $11.54B | $7.68B (yr ago) | Beat |
| EPS | $1.38 | $0.54 (yr ago) | Beat |
| Free Cash Flow | $1.56B | $1.73B (yr ago) | Miss |
| Gross Margin | 53.8% | 39.8% (yr ago) | Beat |
| Operating Margin | 17.3% | -1.7% (yr ago) | Beat |
What changed
Q2 FY2026 revenue increased 50.3% year over year to $11.54 billion, while gross margin recovered to 53.8% and operating margin reached 17.3%. EPS more than doubled to $1.38, but free cash flow declined 9.8% year over year to $1.56 billion and fell sharply from Q1 FY2026.
Impact on the investment thesis
There was no prior SageNoodle fair value to revise; this update establishes a base-case value of $220 per share. The quarter supports stronger earnings assumptions, but not the 129.7x trailing P/E embedded in the $504.64 share price.