Advanced Micro Devices Inc. (NASDAQ:AMD)

The financial performance indicators reveal discernible trends over the observed periods, reflecting fluctuations and subsequent recoveries across profitability and efficiency measures.

Gross Profit Margin

The gross profit margin displayed a steady upward trend from March 2021 to March 2022, peaking around 48.53%. Thereafter, a gradual decline occurred through December 2022 before stabilizing and progressively increasing again in the subsequent quarters. By September 2025, the margin reached approximately 48.26%, indicating an overall strengthening in core profitability relative to revenue over the full timeframe.

Operating Profit Margin

Operating profitability exhibited more volatility compared to gross margin. From March 2021 to December 2021, there was a marked improvement, culminating near 22.2%. However, this was followed by a significant downturn through mid-2023, reaching negative values (-1.73% in July 2023). The margin then slowly recovered, returning to positive territory and climbing back toward 8.78% by September 2025. This pattern suggests operational challenges impacting intermediate profitability before efficiency gains supported recovery.

Net Profit Margin

The net profit margin closely mirrors the operating margin’s volatility but with less pronounced dips into negative territory. After rising steadily to approximately 26.72% in September 2021, it declined substantially through early 2023, reaching near breakeven at -0.11%. Subsequent quarters show a sustained recovery trend, with net margin improving to over 10% by the end of the observed period, reflecting enhanced bottom-line profitability and possibly improved cost management or tax impacts.

Return on Equity (ROE)

ROE followed a trajectory of strong performance in early periods, peaking above 55% in September 2021. However, a sharp decline ensued, bottoming out close to zero by mid-2023. Despite this setback, ROE demonstrated gradual recovery through the subsequent periods, reaching approximately 5.44% by the latest quarter. Although the level remains significantly lower than the initial peak, the upward trend indicates recovering shareholder value generation.

Return on Assets (ROA)

ROA trends paralleled those of ROE but at comparatively lower absolute levels, peaking near 35.59% in September 2021 before dropping sharply to near zero in mid-2023. Recovery was observed thereafter, with ROA increasing incrementally to about 4.3% by September 2025. This recovery implies a return to more effective asset utilization following a period of diminished asset-based profitability.

In summary, early period strength in profitability and returns gave way to significant operational and profitability challenges around 2022 to mid-2023. Subsequently, there is evidence of a recovery phase, with improving margins and returns, although returns measured by ROE and ROA remain below their earlier peaks. This pattern suggests a cycle of growth, contraction, and stabilization with improving efficiency and profitability metrics in recent periods.

The financial data demonstrates key trends in gross profit, net revenue, and gross profit margin over the specified periods.

Net Revenue

Net revenue generally exhibits a growth trajectory across the reported quarters, increasing from 3,445 million USD in March 2021 to 9,246 million USD by September 2025. There are intermittent periods of slight declines or plateaus, notably in late 2022 to early 2023, where net revenue dips below previous highs before resuming growth. The data suggests an overall expansion in sales or service income over time, with some fluctuations potentially reflecting market conditions or business cycles.

Gross Profit

Gross profit mirrors the upward trend observed in net revenue, advancing from 1,587 million USD in March 2021 to a peak of 4,780 million USD in September 2025. Similar to net revenue, gross profit experiences some variation, with declines visible in the latter part of 2022 and mid-2025 before an upswing to the highest recorded figure. This correlation indicates that the company maintains a relatively consistent cost structure relative to revenue, albeit with some variability.

Gross Profit Margin

Gross profit margin percentages show improvement over time, beginning at 44.79% in March 2021 and reaching as high as 50.09% in June 2025, before slightly easing to 48.26% by September 2025. Initial quarters display a steady increase in margin, suggesting enhanced operational efficiency, pricing power, or cost control. Some fluctuations occur, notably a dip around late 2022 and early 2023, which align with the observed decreases in gross profit and net revenue. The overall upward movement in margin indicates an improved profitability profile at the gross level.

In summary, the data reveals a sustained growth path for both net revenue and gross profit alongside a generally increasing gross profit margin. Occasional dips in financial results suggest exposure to cyclical or market-specific challenges, but the long-term trend reflects strengthening operational performance and profitability.

The analysis of the quarterly financial metrics reveals notable fluctuations and trends over the observed periods.

Operating Income (Loss)

The operating income shows a strong upward trend in the early quarters, peaking in the quarter ended December 25, 2021, at 1,207 million US dollars. Following this peak, there is a significant decline, with operating income dropping into negative territory in several quarters—from June 25, 2022, through the quarter ended September 30, 2023—reflecting periods of operational challenges or increased costs. A recovery phase is observed starting December 30, 2023, with positive operating incomes returning and rising steadily to 871 million US dollars in the quarter ended December 28, 2024. However, a negative dip occurs in the quarter ended June 28, 2025, before a strong rebound to 1,270 million US dollars by September 27, 2025.

Net Revenue

Net revenue exhibits a consistent upward trajectory throughout the entire period under review. Beginning at 3,445 million US dollars in the quarter ended March 27, 2021, the revenue grows steadily with minor fluctuations, reaching 9,246 million US dollars by the quarter ended September 27, 2025. This steady increase indicates sustained growth in sales or service activities.

Operating Profit Margin

The operating profit margin initially improves, rising from 16.23% to a peak of 22.2% by December 25, 2021. Afterward, it deteriorates significantly, falling to negative values during several quarters between April 1, 2023, and September 30, 2023. This indicates periods where operating costs may have outweighed revenue gains, impacting profitability. From December 30, 2023, onward, the margin recovers gradually, reaching 9.62% in the quarter ended December 28, 2024. This improvement suggests better cost management or operational efficiency, although it slightly declines again in the following quarters, ending at 8.78% in September 27, 2025.

In summary, while net revenue consistently increases over the period, operating income and profit margin display significant volatility. The initial strong profitability gives way to operational losses and negative margins, followed by a notable recovery phase in the latter quarters. This pattern may reflect cyclical industry conditions, investment phases, restructuring efforts, or varying market demand impacting operational efficiency and profitability despite growing revenue streams.

Net Income (Loss)

Net income exhibited a general upward trend with notable fluctuations over the periods analyzed. Beginning at $555 million, it rose sharply to a peak of $974 million by December 2021, followed by a decline reaching a low of negative $139 million in April 2023. Subsequently, net income recovered strongly, surpassing previous levels, culminating in a significant high of $1,243 million by September 2025. This pattern indicates periods of both contraction and growth, with a pronounced recovery phase in the latest periods.

Net Revenue

Net revenue demonstrated a predominantly increasing trajectory throughout the timeframe. Starting at $3,445 million in March 2021, revenue climbed substantially to a peak of $6,550 million by June 2022. Following this peak, there was a moderate decline with fluctuations, briefly decreasing to $5,353 million in April 2023. After that, revenue resumed a strong upward trend, reaching $9,246 million by September 2025. The data show robust growth overall, with minor cyclical decreases in intermediate periods.

Net Profit Margin

The net profit margin showed a declining trend in the early part of the timeline, moving from a high of 26.72% in September 2021 down to a low of -0.11% in April 2023, reflecting the period of reduced profitability or losses. Starting from mid-2023, the margin began a steady recovery, increasing gradually to 10.32% by September 2025. This increase in margin corresponds with the recovery observed in net income, indicating improved profitability relative to revenue in the later periods.

Overall Financial Trends

The data reflect an initial phase of strong profitability and revenue growth, subsequently interrupted by a period of decline in net income and profit margin despite relatively stable revenue figures. This disruption likely represents business challenges or increased costs during that interval. Following this, both net income and profit margin demonstrate a robust rebound, accompanied by continued revenue growth, suggesting effective management actions or favorable market conditions restoring profitability and expanding sales. The overall outlook from the most recent data points is positive, with strong earnings growth and improving margins supporting enhanced financial performance.

The financial performance over the analyzed quarterly periods reveals several notable trends in net income, stockholders’ equity, and return on equity (ROE).

Net Income (Loss)

Net income exhibited a strong upward trend in the earlier periods, beginning at 555 million US dollars and rising to a peak of 974 million US dollars by the end of 2021. However, starting in early 2022, net income experienced a significant decline, reaching as low as negative 139 million US dollars in April 2023, indicating a loss during that quarter. Following this trough, net income demonstrated a recovery pattern, with fluctuations but an overall upward trajectory, culminating in a substantial increase to 1,243 million US dollars by September 2025.

Stockholders’ Equity

Stockholders’ equity showed relative stability throughout the analyzed periods, maintaining values in the range of approximately 6,400 to 7,500 million US dollars until the end of 2021. Starting in early 2022, there was a marked and sustained increase in equity, surging to over 55,000 million US dollars. From that point onward, equity remained comparatively stable with a modest upward trend, gradually increasing to approximately 60,790 million US dollars by September 2025.

Return on Equity (ROE)

ROE was initially very high, peaking at over 55% in the third quarter of 2021, reflecting strong profitability relative to equity. In 2022, ROE declined sharply, reaching single-digit percentages and even turning slightly negative by mid-2023, which corresponds with the periods of low or negative net income. Yet, after mid-2023, ROE began a gradual improvement, showing a steady upward pattern and reaching 5.44% by the third quarter of 2025, though well below the peak levels observed earlier.

Overall, the data indicate that after strong profitability and efficient equity utilization through 2021, the company encountered a challenging period with drastically lower net income and diminished ROE in 2022 and early 2023. Despite this, the equity base expanded significantly starting in early 2022 and maintained a steady growth thereafter. The recovery in net income and ROE starting mid-2023 suggests an improvement in operational performance, though profitability and return metrics had not returned to prior peak levels by the end of the observed period.

Net Income (Loss)

The net income displayed a positive and increasing trend from March 2021 through December 2021, peaking at 974 million US dollars. This was followed by a significant decline in 2022, reaching a low point of negative 139 million US dollars in April 2023. After this trough, net income gradually recovered, showing a solid improvement through 2023 and 2024, ultimately reaching a strong high of 1243 million US dollars by September 2025.

Total Assets

Total assets exhibited a considerable increase from March 2021 to March 2022, nearly quintupling from approximately 10 billion to over 66 billion US dollars. From this peak in early 2022, assets remained relatively stable with minor fluctuations, generally maintaining levels around 67 to 75 billion US dollars, and ended at approximately 77 billion US dollars by September 2025.

Return on Assets (ROA)

ROA started at a high level in early 2021, with values over 25%, peaking at 35.59% in September 2021. This was followed by a sharp decline coinciding with the substantial jump in total assets, dropping to below 2% by the end of 2022 and even dipping slightly negative in mid-2023. From mid-2023 onward, ROA showed a stable and consistent recovery trend, improving steadily to above 4% by September 2025, indicating enhanced asset utilization and profitability.

Overall Insights

The data demonstrate a period of rapid asset growth and expansion around 2021-2022, which coincided with a decrease in profitability metrics such as net income and ROA. This suggests initial challenges in efficiently deploying the new assets or possible one-time costs associated with growth. However, from mid-2023 onwards, both net income and ROA show a clear recovery and improvement, indicating better operational performance and asset efficiency over time. The company's return to positive and growing net income levels along with increasing ROA supports a narrative of successful adaptation and improved financial health in the later periods.