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AMD announced revenue for the second quarter of 2022 of $6.6 billion, gross margin of 46%, operating income of $526 million, operating margin of 8%, net income of $447 million and diluted earnings per share of $0.27. On a non-GAAP(*) basis, gross margin was 54%, operating income was $2.0 billion, operating margin was 30%, net income was $1.7 billion and diluted earnings per share was $1.05.
GAAP Quarterly Financial Results
| Q2 2022 | Q2 2021 | Y/Y | |
| Revenue ($M) | $6,550 | $3,850 | Up 70% |
| Gross profit ($M) | $3,028 | $1,830 | Up 65% |
| Gross margin % | 46% | 48% | Down 140 bps |
| Operating expenses ($M) | $2,508 | $1,000 | Up 151% |
| Operating income ($M) | $526 | $831 | Down 37% |
| Operating margin % | 8% | 22% | Down 14 pp |
| Net income ($M) | $447 | $710 | Down 37% |
| Earnings per share | $0.27 | $0.58 | Down 53% |
Non-GAAP(*) Quarterly Financial Results
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| Q2 2022 | Q2 2021 | Y/Y | |
| Revenue ($M) | $6,550 | $3,850 | Up 70% |
| Gross profit ($M) | $3,538 | $1,832 | Up 93% |
| Gross margin % | 54% | 48% | Up 640 bps |
| Operating expenses ($M) | $1,562 | $909 | Up 72% |
| Operating income ($M) | $1,982 | $924 | Up 115% |
| Operating margin % | 30% | 24% | Up 6 pp |
| Net income ($M) | $1,707 | $778 | Up 119% |
| Earnings per share | $1.05 | $0.63 | Up 67% |
“We delivered our eighth straight quarter of record revenue based on our strong execution and expanded product portfolio,” said AMD Chair and CEO Dr. Lisa Su. “Each of our segments grew significantly year-over-year, led by higher sales of our data center and embedded products. We see continued growth in the back half of the year highlighted by our next generation 5nm product shipments and supported by our diversified business model.”
Q2 2022 Financial Summary
- Revenue of $6.6 billion increased 70% year-over-year driven by growth across all segments and the inclusion of Xilinx revenue.
- Gross margin was 46%, a decrease of 2 percentage points year-over-year, primarily due to amortization of intangible assets associated with the Xilinx acquisition. Non-GAAP gross margin was 54%, an increase of 6 percentage points year-over-year, primarily driven by higher Data Center and Embedded segment revenue.
- Operating income was $526 million, or 8% of revenue, compared to $831 million or 22% a year ago primarily due to amortization of intangible assets associated with the Xilinx acquisition. Record non-GAAP operating income was $2.0 billion, or 30% of revenue, up from $924 million or 24% a year ago primarily driven by higher revenue and gross profit.
- Net income was $447 million compared to $710 million a year ago primarily due to lower operating income. Record non-GAAP net income was $1.7 billion, up from $778 million a year ago primarily driven by higher operating income.
- Diluted earnings per share was $0.27 compared to $0.58 a year ago primarily due to lower net income and a higher share count as a result of the Xilinx acquisition. Non-GAAP diluted earnings per share was $1.05 compared to $0.63 a year ago primarily driven by higher net income.
- Cash, cash equivalents and short-term investments were $6.0 billion at the end of the quarter and debt was $2.8 billion. AMD repurchased $920 million of common stock during the quarter.
- Cash from operations was a record $1.04 billion in the quarter, compared to $952 million a year ago. Free cash flow was $906 million in the quarter compared to $888 million a year ago.
- Goodwill and acquisition-related intangible assets associated with the acquisitions of Xilinx and Pensando were $50.4 billion.
Quarterly Segment Financial Summary
- AMD previously announced new segments beginning the second quarter to align financial reporting with the way AMD now manages its business in strategic end markets.
- Data Center segment includes server CPUs, data center GPUs, Pensando and Xilinx data center products.
- Client segment includes desktop and notebook PC processors and chipsets.
- Gaming segment includes discrete graphics processors and semi-custom game console products.
- Embedded segment includes AMD and Xilinx embedded products.
- Prior period results have been conformed to the new reporting segments for comparison purposes.
- Data Center segment revenue was $1.5 billion, up 83% year-over-year driven by strong sales of EPYC™ server processors. Operating income was $472 million, or 32% of revenue, compared to $204 million or 25% a year ago. Operating income improvement was primarily driven by higher revenue, partially offset by higher operating expenses.
- Client segment revenue was $2.2 billion, up 25% year-over-year driven by Ryzen™ mobile processor sales. Client processor ASP increased year-over-year driven by a richer mix of Ryzen mobile processor sales. Operating income was $676 million, or 32% of revenue, compared to $538 million or 31% a year ago. Operating income improvement was primarily driven by higher revenue, partially offset by higher operating expenses.
- Gaming segment revenue was $1.7 billion, up 32% year-over-year driven by higher semi-custom product sales, partially offset by a decline in gaming graphics revenue. Operating income was $187 million, or 11% of revenue, compared to $175 million or 14% a year ago. Operating income improvement was primarily driven by higher revenue, partially offset by higher operating expenses. Operating margin was lower primarily due to lower graphics revenue and higher operating expenses.
- Embedded segment revenue was $1.3 billion, up 2,228% year-over-year driven by the inclusion of Xilinx embedded revenue. Operating income was $641 million, or 51% of revenue, compared to $6 million or 11% a year ago. Operating income and margin improvement was primarily driven by the inclusion of Xilinx revenue.
- All Other operating loss was $1.5 billion as compared to $92 million a year ago due to amortization of intangible assets largely associated with the Xilinx acquisition.
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