Thank you, Matt, and good afternoon to all those listening today.
We delivered an outstanding quarter with record revenue and profitability, reflecting broad-based demand across our data center AI, server and PC businesses. Revenue grew 36% year-over-year to $9.2 billion. Net income rose 31%, and free cash flow more than tripled led by record EPYC, Ryzen and Instinct processor sales. Our record third quarter performance marks a clear step-up in our growth trajectory as the combination of our expanding compute franchise and rapidly scaling data center AI business drives significant revenue and earnings growth.
Turning to our segments. Data center segment revenue increased 22% year-over-year to a record $4.3 billion led by the ramp of our Instinct MI350 Series GPUs and server share gains.
Server CPU revenue reached an all-time high as adoption of 5th Gen EPYC Turin processors accelerated rapidly, accounting for nearly half of overall EPYC revenue in the quarter. Sales of our prior generation EPYC processors were also very robust in the quarter reflecting their strong competitive positioning across a wide range of workloads. In cloud, we had record sales as hyperscalers expanded EPYC CPU deployments to power both their own first-party services and public cloud offerings. Hyperscalers launched more than 160 EPYC-powered instances in the quarter, including new Turin offerings from Google, Microsoft Azure, Alibaba and others that deliver unmatched performance and price performance across a wide range of workloads. There are now more than 1,350 public EPYC cloud instances available globally, a nearly 50% increase from a year ago. Adoption of EPYC in the cloud by large businesses more than tripled year-over-year as our on-prem share gains are driving increased demand from enterprise customers for AMD cloud instances to support hybrid compute. We expect cloud demand to remain very strong as hyperscalers are significantly increasing their general-purpose compute capacity as they scale their AI workloads. Many customers are now planning substantially larger CPU build-outs over the coming quarters to support increased demands from AI serving as a powerful new catalyst for our server business. Turning to enterprise adoption.
EPYC server sell-through increased sharply year-over-year and sequentially reflecting accelerating enterprise adoption. More than 170 5th Gen EPYC platforms are in market from HPE, Dell, Lenovo, Super Micro and others, our broadest portfolio to date with solutions optimized for virtually every enterprise workload. We closed large new wins in the quarter with leading Fortune 500 technology, telecom, financial services, retail, streaming, social and automotive companies as we expand our footprint across major verticals. The performance and TCO advantages of our EPYC portfolio combined with our increased go-to-market investments and the expanded breadth of offerings from the leading server and solutions providers position us well for continued enterprise share gains. Looking ahead, we remain on track to launch our next-generation 2-nanometer Venice processors in 2026. Venice silicon is in the labs and performing very well, delivering substantial gains in performance, efficiency and compute density. Customer pull and engagement for Venice are the strongest we have seen reflecting our competitive positioning and the growing demand for more data center compute. Multiple cloud OEM partners have already brought their first Venice platforms online, setting the stage for broad solution availability and cloud deployments at launch.
Turning to data center AI. Our Instinct GPU business continues to accelerate. Revenue grew year-over-year driven by the sharp ramp of MI350 Series GPU sales and broader MI MI300 Series deployments. Multiple MI350 Series deployments are underway with large cloud and AI providers, with additional large-scale rollouts on track to ramp over the coming quarters. Oracle became the first hyperscaler to publicly offer MI355X instances, delivering significantly higher performance for real-time inference and multimodal training workloads on OCI zettascale supercluster. Neocloud providers Crusoe, DigitalOcean, TensorWave, Vultr and others also began ramping availability of their MI350 Series public cloud offerings in the quarter. MI300 Series GPU deployments with AI developers also broadened in the quarter. IBM and Zyphra will train multiple generations of future multimodal models on a large-scale MI300X cluster. And Cohere is now using MI300X at OCI to train its Command family of models. For inference, a number of new partners, including Character.AI and Luma AI, are now running production workloads on MI300 Series demonstrating the performance and TCO advantages of our architecture for real-time AI applications.
We also made significant progress on the software front in the quarter. We launched ROCm 7, our most advanced and feature-rich release to date, delivering up to 4.6x higher inference and 3x higher training performance compared to ROCm 6. ROCm 7 also introduces seamless distributed inference, enhanced code portability across hardware and new enterprise tools that simplify the deployment and management of Instinct solutions. Importantly, our open software strategy is resonating with developers. Hugging Face, vLLM, SGLang and others contributed directly to ROCm 7 as we make ROCm the open platform for AI development at scale.
Looking ahead, our data center AI business is entering its next phase of growth with customer momentum building rapidly ahead of the launch of our next-gen MI400 Series accelerators and Helios rack-scale solutions in 2026. The MI400 Series combines a new compute engine with industry-leading memory capacity and advanced networking capabilities to deliver a major leap in performance for the most demanding AI training and inference workloads. The MI400 Series brings together our silicon, software and systems expertise to power Helios, our rack-scale AI platform designed to redefine performance and efficiency at data center scale. Helios integrates our Instinct MI400 Series GPUs, Venice EPYC CPUs and Pensando NICs in a double-wide rack solution optimized for the performance, power, cooling and serviceability required for the next generation of AI infrastructure and supports Meta's new open rack wide standard. Development of both our MI400 Series GPUs and Helios rack is progressing rapidly, supported by deep technical engagements across a growing set of hyperscalers, AI companies and OEM and ODM partners to enable large-scale deployments next year. The ZT Systems team we acquired last year is playing a critical role in Helios development, leveraging their decades of experience building infrastructure for the world's largest cloud providers to ensure customers can deploy and scale Helios quickly within their environments. In addition, last week, we completed the sale of the ZT manufacturing business to Sanmina and entered a strategic partnership that makes them our lead manufacturing partner for Helios. This collaboration will accelerate large customer deployments of our rack-scale AI solutions.
On the customer front, we announced a comprehensive multiyear agreement with OpenAI to deploy 6 gigawatts of Instinct GPUs with the first gigawatt of MI450 Series accelerators scheduled to start coming online in the second half of 2026. The partnership establishes AMD as a core compute provider for OpenAI and underscores the strength of our hardware, software and full stack solution strategy. Moving forward, AMD and OpenAI will work even more closely on future hardware, software, networking and system-level road maps and technologies. OpenAI's decision to use AMD Instinct platforms for its most sophisticated and complex AI workloads sends a clear signal that our Instinct GPUs and ROCm open software stack deliver the performance and TCO required for the most demanding deployments.
We expect this partnership will significantly accelerate our data center AI business with the potential to generate well over $100 billion in revenue over the next few years. Oracle announced they will also be a lead launch partner for the MI450 Series, deploying tens of thousands of MI450 GPUs across Oracle Cloud Infrastructure beginning in 2026 and expanding through 2027 and beyond. Our Instinct platforms are also gaining traction with sovereign AI and national supercomputing programs. In the UAE, Cisco and G42 will deploy a large-scale AI cluster powered by Instinct MI350X GPUs to support the nation's most advanced AI workloads. In the U.S., we are partnering with the Department of Energy and Oak Ridge National Labs to build Lux AI, the first AI factory dedicated to scientific discovery together with our industrial partners, OCI and HPE. Powered by our Instinct MI350 series GPUs, EPYC CPUs and Pensando networking, Lux AI will provide a secure open platform for large-scale training and distributed inference when it comes online in early 2026. The U.S. Department of Energy also selected our upcoming MI430X GPUs and EPYC Venice CPUs to power Discovery, the next flagship supercomputer at Oak Ridge designed to set the standard for AI-driven scientific computing and extend U.S. high-performance computing leadership. Our MI430X GPUs are designed specifically to power nation-scale AI and supercomputing programs, extending our leadership, powering the world's most powerful computers to enable the next generation of scientific breakthroughs.
In summary, our AI business is entering a new phase of growth and is on a clear trajectory towards tens of billions in annual revenue in 2027 driven by our leadership rack-scale solutions, expanding customer adoption and an increasing number of large-scale global deployments. I look forward to providing more details on our data center AI growth plans at our Financial Analyst Day next week. In client and gaming, segment revenue increased 73% year-over-year to $4 billion. Our PC processor business is performing exceptionally well with record quarterly sales as the strong demand environment and breadth of our leadership Ryzen portfolio accelerates growth. Desktop CPU sales reached an all-time high with record channel sell-in and sell-out led by robust demand for our Ryzen 9000 processors which deliver unmatched performance across gaming, productivity and content creation applications. OEM sell-through of Ryzen-powered notebooks also increased sharply in the quarter reflecting sustained end customer pull for premium gaming and commercial AMD PCs. Commercial momentum accelerated in the quarter with Ryzen PC sell-through up more than 30% year-over-year as enterprise adoption grew sharply driven by large wins with Fortune 500 companies across health care, financial services, manufacturing, automotive and pharmaceuticals. Looking ahead, we see significant opportunity to continue growing our client business faster than the overall PC market based on the strength of our Ryzen portfolio, broader platform coverage and expanded go-to-market investments. In gaming, revenue increased 181% year-over-year to $1.3 billion. Semi-custom revenue increased as Sony and Microsoft prepare for the upcoming holiday sales period. In gaming graphics, revenue and channel sell-out grew significantly driven by the performance per dollar leadership of our Radeon 9000 family. FSR 4, our machine learning upscaling technology that boosts frame rates and creates more immersive visuals saw rapid adoption this quarter with the number of supported games doubling since launch to more than 85.
Turning to our embedded segment. Revenue decreased 8% year-over-year to $857 million. Sequentially, revenue and sell-through increased as the demand environment strengthened across multiple markets led by test and emulation, aerospace and defense, and industrial, vision and health care. We expanded our embedded product portfolio with new solutions that extend our leadership across adaptive and x86 computing. We began shipping industry-leading Versal Prime Series Gen 2 adaptive SoCs to lead customers, delivered our first Versal RF development platforms to support several next-generation design wins and introduced the Ryzen Embedded 9000 Series with industry-leading performance per watt and latency for robotics, edge computing and smart factory applications. The design momentum remains very strong across our embedded portfolio. We are on track for a second straight year of record design wins already totaling more than $14 billion year-to-date, reflecting the growing adoption of our leadership products across a broad range of markets and expanding set of applications. In summary, our record third quarter results and strong fourth quarter outlook reflect the significant momentum building across our business driven by sustained product leadership and disciplined execution. Our data center AI, server and PC businesses are each entering periods of strong growth led by an expanding TAM, accelerating adoption of our Instinct platforms and EPYC and Ryzen CPU share gains.
The demand for compute has never been greater as every major breakthrough in business, science and society now relies on access to more powerful, efficient and intelligent computing. These trends are driving unprecedented growth opportunities for AMD. I look forward to sharing more on our strategy, road maps and long-range financial targets at our financial analyst meeting next week.
Now I'll turn the call over to Jean to provide additional color on our third quarter results. Jean?