AMD reported record revenue of $7.7 billion for Q2 2025, a 32% year-over-year increase, exceeding the midpoint of guidance.
Client and Gaming segment revenue rose 69% year-over-year to $3.6 billion, driven by record client CPU sales and strong demand for gaming GPUs and semi-custom game console SoCs.
Data Center segment revenue increased 14% year-over-year to $3.2 billion but decreased 12% sequentially due to export controls impacting MI308 sales.
Diluted earnings per share were $0.48, reduced by approximately $0.43 due to inventory and related charges.
Embedded segment revenue declined 4% year-over-year to $824 million, with mixed demand and product mix impacting operating income.
Free cash flow was a record $1.2 billion, with $478 million returned to shareholders through share repurchases in the quarter.
Gross margin was 43%, down from 53% a year ago, primarily due to an $800 million inventory write-down related to U.S. export controls on MI308 sales to China; excluding this charge, non-GAAP gross margin was approximately 54%.
Operating income was $897 million, representing a 12% operating margin, down from $1.3 billion or 22% a year ago due to inventory charges.
Adjusted EBITDA was a $400,000 profit, outperforming guidance which forecasted a loss between $2.1 million and $600,000.
GAAP gross margin was 33.2%, and cash gross margin was 38.4%, both within guidance ranges but lower year-over-year due to revenue mix.
Operating cash flow was $7 million, and free cash flow was $4.6 million, representing a 12.9% free cash flow margin for the quarter.
Security Solutions accounted for approximately 90% of total revenue and was the primary driver of growth.
Telos reported second quarter 2025 revenue of $36 million, a 26% year-over-year increase, exceeding guidance of $32.5 million to $34.5 million.
Year-to-date free cash flow was $8.4 million or 12.6% margin, with significant improvements driven by revenue growth, cost discipline, and working capital management.
Dafinchi