Amkor Technology Q2 Earnings Beat Estimates, Revenues Rise Y/Y

Amkor Technology (AMKR) reported second-quarter 2026 earnings of 70 cents per share, beating the Zacks Consensus Estimate by 48.94%. The company reported earnings of 22 cents per share in the year-ago quarter.

Net sales of $1.89 billion surpassed the Zacks Consensus Estimate by 5.27%. The figure increased 25.58% year over year. The quarter's performance reflected record revenues in the Computing and Automotive and Industrial end markets, along with continued strength across the advanced packaging portfolio.

Amkor Technology, Inc. Price, Consensus and EPS Surprise

Amkor Technology, Inc. price-consensus-eps-surprise-chart | Amkor Technology, Inc. Quote

AMKR's Q2 Top Line & Mix

AMKR's second-quarter 2026 revenue mix continued to skew toward higher value work. Advanced products totaled $1.557 billion, up 26.79% year over year, reflecting strong customer engagement across leading-edge packaging platforms. Mainstream products contributed $341 million, up 20.49% year over year, supported by the fifth consecutive quarter of year-over-year mainstream growth.

Packaging comprised 88% of second-quarter 2026 sales, in line with the year-ago period, and test services accounted for 12%. Net sales from the top 10 customers represented 66% in the second quarter of 2026 compared with 72% in the second quarter of 2025.

AMKR's Q2 End Market Details

In the second quarter, Communications revenues grew approximately 32% year over year, aided by double-digit growth in the iOS ecosystem even as Android softness stemming from memory supply constraints partly offset the gain.

Computing revenues rose approximately 26% year over year, hitting a record quarterly level on the back of broad-based data center demand and the ramp of the company's newest HDFO CPU program.

Automotive and Industrial revenues advanced approximately 38% year over year to a record quarterly level, driven by strong ADAS demand and increasing semiconductor content in next-generation vehicle platforms.

Consumer revenues declined approximately 2% year over year even as sequential demand improved on broad-based IoT strength across customers.

AMKR's Margin Details

Profitability improved sharply from the year-ago period. Gross profit was $318.6 million, up 75.15% year over year, and gross margin expanded to 16.8%, up roughly 480 basis points year over year.

Operating income reached $199.9 million, more than double the $92 million reported in the year-ago quarter. Operating margin was 10.5%, up roughly 440 basis points year over year, reflecting higher factory utilization and a richer product mix.

Net income attributable to Amkor was $173.8 million compared with $54.4 million in the year-ago quarter. EBITDA was $400 million versus $259 million a year earlier.

AMKR's Balance Sheet & Cash Flow Details

Amkor's liquidity position strengthened sequentially. As of June 30, 2026, total cash and short-term investments stood at $2.5 billion, up from $1.8 billion at the end of the first quarter, while total debt rose to $2.486 billion from $1.4 billion, following the issuance of $1.15 billion in convertible notes in May. Total liquidity was $3.6 billion, up from $2.9 billion in the prior quarter, and the debt-to-EBITDA ratio was 1.8X compared with 1.1X in the first quarter.

For the six months ended June 30, 2026, net cash provided by operating activities was $381.6 million, implying approximately $236.5 million was generated in the second quarter alone, up from $145.1 million in the first quarter. Capital expenditures for the six-month period totaled $688.4 million, implying approximately $463.8 million was invested in the second quarter, up from $224.6 million in the first quarter, consistent with the ongoing Arizona and Asia footprint expansion.

AMKR's Q3 & 2026 Guidance

For the third quarter of 2026, AMKR expects net sales of $1.95-$2.05 billion and a gross margin of 18.5% to 19.5%. Net income is expected to be $180 million to $205 million, with diluted EPS between 72 cents and 82 cents.

Full year 2026 capital expenditures remain projected at approximately $2.5 billion to $3 billion, with roughly 65% to 70% allocated to facilities expansion including Phase 1 of the Arizona campus and 30% to 35% allocated to HDFO, test and other advanced packaging capacity.

Operationally, management pointed to accelerating Computing growth of nearly 30% sequentially in the third quarter, driven by AI data center demand and the continued ramp of the HDFO CPU program, partly offset by a high single-digit sequential decline in Communications tied to the planned SiP transition from Korea to Vietnam and ongoing memory supply constraints. Recently announced 10-year and multi-year strategic partnerships with TSMC and NVIDIA were highlighted as reinforcing the company's long-term advanced packaging growth trajectory.

Zacks Rank & Stocks to Consider

Amkor currently carries a Zacks Rank #2 (Buy).

Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Analog Devices ADI, Applied Materials AMAT and Cisco Systems CSCO, each carrying a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Shares of Analog Devices have rallied 37.1% year to date. The Zacks Consensus Estimate for ADI’s fiscal 2026 earnings is pegged at $12.42 per share, up by 10 cents over the past 30 days, indicating an increase of 59.4% year over year.

Shares of Applied Materials have skyrocketed 101.1% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $12.14 per share, up by 4 cents over the past 30 days, indicating a rise of 28.9% year over year.

Cisco Systems shares have surged 48.7% year to date. The Zacks Consensus Estimate for CSCO’s fiscal 2026 earnings is pegged at $4.28 per share, unchanged over the past 30 days, indicating an increase of 12.3% year over year.

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