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AMD’s Q2 2026 financial results show record revenue across the business, but gaming is contributing less and less to that overall pie. Overall, AMD’s Q2 revenue was $11.5 billion, up 50% year-over-year and up 13% quarter-over-quarter. In AMD’s gaming segment, however, it saw $779 million in revenue, down 31% YoY due to “lower semi-custom revenue,” according to AMD’s press release.Go deeper with TH Premium: CPUThat’s not a new story, as AMD has continually pointed to the late stage of the console lifecycle as the driving force behind declining gaming revenue. CEO Lisa Su, however, also says revenue is declining due to rising component costs. “Gaming graphics revenue also declined year-over-year as higher industry-wide component costs contributed to higher graphics card prices and weighed on overall demand,” Su said.Earlier this year, AMD said that it expected a 20% decline in gaming revenue in the second half of the year, which is reaffirmed in its Q2 2026 earnings call. “[We expect] a modest decline in our client gaming segment, with slight growth in client offset by strong double-digit decline in gaming,” said AMD's Jean Hu, executive vice president and Chief Financial Officer.Despite these declines, Su says she's 'optimistic' about the future of AMD's client CPU business, particularly when it comes to AI PCs. "I think AI PCs will become more important as it relates to our client business in 2026. I think our first half performance has been very strong, and although we are expecting that the market will decline in the second half, the market's actually held up, you know, better than you know most people would have thought," said Su.
