Amkor Q3 2026 Margins Expand on Record Computing, Auto Sales

Amkor Technology reported third-quarter 2026 revenue of $1.99 billion, supported by record sales in its Computing and Automotive & Industrial end markets, while stronger profitability lifted gross margin to 18.3% and operating margin to 11.3%. Revenue was roughly unchanged from a year earlier but rose from $1.90 billion in the second quarter.

Gross profit increased to $364 million from $284 million a year earlier and $319 million in the prior quarter. Operating income reached $225 million, compared with $159 million in the third quarter of 2025 and $200 million in the second quarter of 2026. Diluted earnings per share rose to $0.76 from $0.51 a year earlier and $0.70 in the preceding quarter.

Net income was $191 million, representing a 9.6% net income margin. EBITDA, a non-GAAP measure, totaled $435 million, with an EBITDA margin of 21.8%.

Computing and automotive reach quarterly records

Computing revenue increased 25% sequentially to a quarterly record as Amkor continued scaling its flagship high-density fan-out, or HDFO, CPU program. The company said an additional HDFO CPU program and two 2.5D programs were scheduled to ramp in the fourth quarter.

Automotive & Industrial revenue rose 7% from the second quarter to a record, driven by demand for advanced driver-assistance systems and industrial products. Consumer revenue increased 10% sequentially on growth in internet-of-things and home electronics products, although Amkor also cited constrained materials.

Communications revenue declined 8% sequentially. The company attributed the change to a strategic system-in-package migration to Vietnam, constrained materials and changes in customer build patterns.

Capacity expansion remains a strategic priority

Amkor said customers are engaging earlier on technology roadmaps, while long-term capacity commitments are improving visibility into future demand. Advance payments tied to capacity requirements are helping support investment in Arizona and Asia.

The company expects the second phase of its Arizona project to break ground in late 2027. Multiple facility expansions are underway in Korea, while the Vietnam expansion is progressing as planned. Amkor expects 2026 capital expenditures of approximately $2.5 billion.

At quarter-end, the company had $2.4 billion of cash and short-term investments and $3.4 billion of liquidity, which includes available borrowing capacity. Total debt was $2.47 billion, with trailing-12-month debt to EBITDA of 1.7 times. The non-GAAP leverage measure compares with a debt-to-net-income ratio of 4.0 times.

Fourth-quarter outlook

For the fourth quarter of 2026, Amkor provided net sales guidance of $1.9 billion to $2.0 billion and a gross margin range of 18.0% to 19.0%. Net income is expected to be between $160 million and $185 million, with diluted earnings per share of $0.65 to $0.75.

The outlook remains subject to operating uncertainties identified in the presentation, including material constraints, changes in build patterns and execution of manufacturing migrations and capacity expansions. The company also cautioned that forward-looking results could differ materially because of risks detailed in its regulatory filings.