Advanced Micro Devices (XSWX:AMD) Operating Income: CHF3,460 Mil (TTM As of Mar. 2026)


XSWX:AMD Advanced Micro Devices Inc XSWX:AMD
80 GF Score
Price CHF419.32
GF Value CHF190.40
Valuation Significantly Overvalued
! 9 Warning Signs
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What is Advanced Micro Devices Operating Income?

Advanced Micro Devices XSWX:AMD 80 Operating Income is CHF3,460 Mil as of Mar. 2026. GuruFocus rates XSWX:AMD with a GF Score™ of 80/100 and a GF Value™ of CHF190.40 (Significantly Overvalued). The stock has 9 warning signs investors should review.

Advanced Micro Devices's Operating Income for the three months ended in Mar. 2026 was CHF1,162 Mil. Its Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 was CHF3,460 Mil.

Operating Margin % is calculated as Operating Income divided by its Revenue. Advanced Micro Devices's Operating Income for the three months ended in Mar. 2026 was CHF1,162 Mil. Advanced Micro Devices's Revenue for the three months ended in Mar. 2026 was CHF8,072 Mil. Therefore, Advanced Micro Devices's Operating Margin % for the quarter that ended in Mar. 2026 was 14.40%.

Warning Sign:

Advanced Micro Devices Inc operating margin has been in a 5-year decline. The average rate of decline per year is -14.6%.

Advanced Micro Devices's 5-Year average Growth Rate for Operating Margin % was -14.60% per year.

Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition. Advanced Micro Devices's annualized ROC % for the quarter that ended in Mar. 2026 was 8.35%. Advanced Micro Devices's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 was 66.91%.

Advanced Micro Devices  (XSWX:AMD) Operating Income Explanation

1. Operating Income or EBIT is linked to Return on Capital for both regular definition and Joel Greenblatt's definition.

Advanced Micro Devices's annualized ROC % for the quarter that ended in Mar. 2026 is calculated as:

ROC % (Q: Mar. 2026 )
=NOPAT/Average Invested Capital
=Operating Income * ( 1 - Tax Rate % )/( (Invested Capital (Q: Dec. 2025 ) + Invested Capital (Q: Mar. 2026 ))/ count )
=4648.22 * ( 1 - 14.84% )/( (47686.495 + 47075.029)/ 2 )
=3958.424152/47380.762
=8.35 %

where

Invested Capital(Q: Dec. 2025 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=61302.329 - 5206.945 - ( 8408.889 - max(0, 7534.69 - 21474.064+8408.889))
=47686.495

Invested Capital(Q: Mar. 2026 )
=Total Assets - Accounts Payable & Accrued Expense - Excess Cash
=Total Assets - Accounts Payable & Accrued Expense - ( Cash, Cash Equivalents, Marketable Securities - max(0, Total Current Liabilities - Total Current Assets+Cash, Cash Equivalents, Marketable Securities))
=62702.147 - 5906.325 - ( 9720.793 - max(0, 8271.374 - 22538.824+9720.793))
=47075.029

Note: The Operating Income data used here is four times the quarterly (Mar. 2026) data.

2. Joel Greenblatt's definition of Return on Capital:

Advanced Micro Devices's annualized ROC (Joel Greenblatt) % for the quarter that ended in Mar. 2026 is calculated as:

ROC (Joel Greenblatt) %(Q: Mar. 2026 )
=EBIT/Average of (Net fixed Assets + Net Working Capital)
=EBIT/Average of (Property, Plant and Equipment+Net Working Capital)
     Q: Dec. 2025  Q: Mar. 2026
=EBIT/( ( (Property, Plant and Equipment + Net Working Capital) + (Property, Plant and Equipment + Net Working Capital) )/ count )
=5167.836/( ( (1842.433 + max(6226.976, 0)) + (2143.818 + max(5234.757, 0)) )/ 2 )
=5167.836/( ( 8069.409 + 7378.575 )/ 2 )
=5167.836/7723.992
=66.91 %

where Working Capital is:

Working Capital(Q: Dec. 2025 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(5032.424 + 6311.448 + 1721.303) - (5206.945 + 0 + 1631.254)
=6226.976

Working Capital(Q: Mar. 2026 )
=(Accounts Receivable + Total Inventories + Other Current Assets) - (Accounts Payable & Accrued Expense + Defer. Rev. + Other Current Liabilities)
=(4751.356 + 6333.829 + 1732.846) - (5906.325 + 0 + 1676.949)
=5234.757

When net working capital is negative, 0 is used.

Note: The EBIT data used here is four times the quarterly (Mar. 2026) EBIT data.

3. Operating Income is also linked to Operating Margin %:

Advanced Micro Devices's Operating Margin % for the quarter that ended in Mar. 2026 is calculated as:

Operating Margin %=Operating Income (Q: Mar. 2026 )/Revenue (Q: Mar. 2026 )
=1162.055/8072.187
=14.40 %

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

4. Please click Growth Rate Calculation Example (GuruFocus) to see how GuruFocus calculates Wal-Mart Stores Inc (WMT)'s revenue growth rate. You can apply the same method to get the Operating Income growth rate using Operating Income per share data.

Be Aware

Compared with a company's EBITDA margin, Operating Margin can be manipulated by adjusting the rate of depreciation, depletion and amortization (DDA).

If a company is facing competition, its Operating Margin may decline. Often the Operating Margin declines well before the company's revenue or even profit decline. Therefore, Operating Margin is a very important indicator of whether the company is facing problems.

For instance, by 2012, Nokia (NOK)'s problems were well known and its stock had lost more than 90% of its market value since 2007. But Nokia's Operating Margin had already been in decline since 2002, although its earnings per share were still rising. Investors who paid attention to Operating Margin would have avoided this huge loss. The same can be said for Research-in-Motion (RIMM).

Therefore, Operating Margin is a very important screening filter for GuruFocus. GuruFocus's Buffett-Munger screener requires that the profit margin is either consistent or expanding. The Model Portfolio of the Buffett-Munger screener has outperformed the market every year since inception in 2009.

Advanced Micro Devices Operating Income Related Terms

Advanced Micro Devices Operating Income Historical Data

* Premium members only.

The historical data trend for Advanced Micro Devices's Operating Income can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Advanced Micro Devices Operating Income Chart

Advanced Micro Devices Annual Data
Trend Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23 Dec24 Dec25
Operating Income
Get a 7-Day Free Trial Premium Member Only Premium Member Only 3,359.81 1,177.54 346.79 1,859.88 2,943.75

Advanced Micro Devices Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Operating Income Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 712.18 -108.97 1,011.05 1,396.17 1,162.06
XSWX:AMD
80GF Score
Advanced Micro Devices Inc XSWX:AMD
Operating Income is just one metric. See GF Score™, valuation, warning signs, and more.
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Advanced Micro Devices Operating Income Calculation

Operating Income, is the profit a company earned through operations. All expenses, including cash expenses such as cost of goods sold (COGS), research & development, wages, and non-cash expenses, such as depreciation, depletion and amortization, have been deducted from the sales.

Operating Income for the trailing twelve months (TTM) ended in Mar. 2026 adds up the quarterly data reported by the company within the most recent 12 months, which was CHF3,460 Mil.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Frequently Asked Questions Learn more about Operating Income →
What does a Operating Income of CHF3,460 Mil mean?
Advanced Micro Devices (XSWX:AMD) has a Operating Income of CHF3,460 Mil as of Mar. 2026. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Advanced Micro Devices and its competitors.
Is Advanced Micro Devices' Operating Income too high?
Advanced Micro Devices' current Operating Income is CHF3,460 Mil. Overall, Advanced Micro Devices has a GF Score™ of 80/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Advanced Micro Devices' Operating Income compare to INTC and MU?
Advanced Micro Devices' Operating Income of CHF3,460 Mil can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Operating Income for a Semiconductors company?
A good Operating Income depends on the Semiconductors industry context. However, Operating Income should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Operating Income mean?
A high Operating Income can signal that a stock is expensive relative to its fundamentals. Operating Income equals sales less all operating expenses. It is linked to EBIT. View historical data on Advanced Micro Devices and its competitors. Advanced Micro Devices's current Operating Income is CHF3,460 Mil. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Advanced Micro Devices stock overvalued right now?
Based on GuruFocus' analysis, Advanced Micro Devices (XSWX:AMD) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF190.40, compared to a current price of CHF419.32 — trading 120.2% above its estimated fair value. The current Operating Income is CHF3,460 Mil. Advanced Micro Devices' overall GF Score™ is 80/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Operating Income calculated?
Operating Income is calculated from a company's financial statements. For Advanced Micro Devices (XSWX:AMD), the current Operating Income is CHF3,460 Mil as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.

Is Advanced Micro Devices (XSWX:AMD) Overvalued in 2026?

Based on GuruFocus' analysis, Advanced Micro Devices stock appears to be overvalued. The current stock price of CHF419.32 is trading 120.2% above its estimated GF Value™ of CHF190.40. GuruFocus considers Advanced Micro Devices to be Significantly Overvalued.

Key valuation signals for XSWX:AMD:

  • Operating Income: CHF3,460 Mil
  • GF Value™: CHF190.40 vs. price of CHF419.32 (120.2% above fair value)
  • GF Score™: 80/100 with 9 warning signs

No single metric tells the full story. See the XSWX:AMD stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.

Advanced Micro Devices Business Description

Address 2485 Augustine Drive, Santa Clara, CA, USA, 95054
Advanced Micro Devices designs a variety of digital semiconductors for markets such as PCs, gaming consoles, data centers (including artificial intelligence), industrial, and automotive applications. AMD's traditional strength was in central processing units and graphics processing units used in PCs and data centers. However, AMD is emerging as a prominent player in AI GPUs and related hardware. Additionally, the firm supplies the chips found in prominent game consoles such as the Sony PlayStation and Microsoft Xbox.
80GF Score

Get the complete analysis for XSWX:AMD

Operating Income is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF419.32
Price
CHF190.40
GF Value