AMD ADVANCED MICRO DEVICES INC

Overview and Growth

ADVANCED MICRO DEVICES INC generated $34.64B of revenue in fiscal 2025, with net income of $4.33B and an operating cash inflow of $7.71B. Revenue of $34.64B sets the scale for evaluating how effectively sales translated into profit and cash during the year. Revenue was 34.3% above fiscal 2024 revenue of $25.79B, marking a year-over-year increase. On a per-share basis, diluted EPS was $2.65, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 165.0% increase from fiscal 2024 diluted EPS of $1.00. The revenue-to-assets relationship was 0.45x, showing the sales generated relative to the resources carried on the balance sheet.

Profitability

The first profit layer was $17.15B of gross profit, the amount available after reported direct revenue costs to absorb operating expenses. Gross margin was 49.5%, so that share of each revenue unit remained after the cost of revenue reported for the period. The reported operating result was $3.69B, capturing profitability after direct costs and the operating expenses reflected in the statements. Relative to revenue, operating income represented 10.7%, showing how efficiently sales converted into operating profit. The bottom-line result was net income of $4.33B, after the operating, financing, tax, and other items recognized for the period. Measured against reported revenue, net income produced a 12.5% margin after operating costs and the remaining recognized items. Pretax income was $4.17B, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 12.0%, adding a pre-tax profitability layer between revenue and net income. The reported tax benefit was $103.00M, favorably bridging the pretax and after-tax results. The tax benefit equaled 2.5% of positive pretax income, lifting the after-tax result.

Liquidity and Capital Structure

The company held $76.93B of assets against $13.93B of liabilities and $63.00B of equity, revealing how the asset base was financed. Current assets were $26.95B against $9.46B of current liabilities, framing the resources and obligations classified within the near-term balance-sheet horizon. At 2.85x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. The company held $5.54B in cash and equivalents, a narrower liquidity measure than total current assets. Measured only with cash and equivalents, coverage of current liabilities was 58.6%, excluding receivables and other current assets. Borrowings totaled $3.22B, adding a fixed financing obligation alongside the company’s equity capital. Against book equity, debt measured 0.05x, placing the company’s financial leverage in clear balance-sheet terms. Relative to total assets, debt measured 4.2%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 18.1%, placing reported obligations against the full positive asset balance. Measured against total assets, cash and equivalents represented 7.2%, a balance-sheet composition measure rather than a liquidity forecast.

Cash Flow and Earnings Quality

Cash flow from operations was $7.71B, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.78x, showing the relationship between accrual earnings and operating cash. Capital expenditures used $974.00M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Relative to operating cash flow, capital expenditures measured 12.6%, connecting investment intensity with the company’s cash-generation base. The combination of operating cash flow and capital spending produced $6.74B of positive free cash flow for the period. Relative to revenue, free cash flow equaled 19.4%, showing how much sales converted into cash after investment. Free cash flow equaled 8.8% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 27, 2025. Analysis generated Oct 21, 2026.