AMD Posts Record Revenue Despite $1.1 Billion Warrant Charge

The chipmaker's third-quarter 2026 results were shaped by a non-cash charge tied to warrants issued to OpenAI and Meta.

Updated on Nov. 3, 2026 in Corporate Finance

AMD Posts Record Revenue Despite $1.1 Billion Warrant Charge

AMD reported record quarterly revenue of $13.4 billion for the third quarter of 2026, a 45% year-over-year increase, while recording a $1.097 billion non-cash charge tied to warrant liabilities connected to OpenAI and Meta. The charge reduced GAAP diluted earnings per share by $0.66, leaving GAAP diluted EPS at $1.46.

Why it matters

The charge reflects how warrant liabilities are marked to market each quarter, so rising AMD share prices and GPU demand increase their fair value and flow through reported earnings. The gap between GAAP EPS of $1.46 and non-GAAP EPS of $2.09 shows how the warrant accounting shapes the reported figures.

AMD's GAAP net income was $2.43 billion against non-GAAP net income of $3.47 billion, a gap driven by the $1.097 billion warrant charge. The warrants could dilute existing shareholders by approximately 19.6% of shares outstanding if fully exercised, though none had vested as of June 27, 2026.

The players

Advanced Micro Devices (AMD)

A Santa Clara-based semiconductor company that designs CPUs, GPUs and data-center processors and competes with Intel and Nvidia.

OpenAI

An artificial intelligence research company that developed ChatGPT and is among the largest buyers of AI computing hardware.

Meta Platforms

The parent company of Facebook, Instagram and WhatsApp, which has made large investments in AI infrastructure.

The details

AMD issued warrants to OpenAI in October 2025 and to Meta in February 2026, each covering up to 160 million shares at an exercise price of $0.01 per share. The warrants are tied to MI450 GPU purchase volumes and stock performance milestones, and AMD records changes in their fair value as charges to earnings each quarter.

October 2025: AMD issued warrants to OpenAI.
February 2026: AMD issued warrants to Meta.
Q3 2026: AMD recorded the $1.097 billion non-cash warrant charge alongside record revenue.
June 27, 2026: None of the warrants had vested.
Late October 2026: AMD announced a $1 billion investment commitment in a Meta equity offering.

Corporate Finance Trend

Warrant-based arrangements tied to large customer purchases, such as those AMD has struck with OpenAI and Meta, make reported earnings sensitive to the company's share price under fair-value accounting. As a result, strong operating results and a rising stock can coexist with a large non-cash charge that depresses GAAP earnings.

Investors comparing AMD's GAAP and non-GAAP results should note that the $0.66 per share warrant charge explains much of the gap between $1.46 and $2.09. Shareholders should also track whether the warrants vest, since full exercise would dilute existing holders by roughly 19.6%.

The takeaway

Headline earnings can diverge sharply from operating performance when fair-value accounting applies to warrants tied to large customer purchases. Investors should read both GAAP and non-GAAP figures alongside the terms of any warrant agreements.