Amkor Technology, Inc.

Amkor reported second-quarter revenue of $1.9 billion, up 26% year over year and 13% sequentially. EPS was $0.70, and gross margin was 16.8%, expanding more than 250 basis points sequentially; gross profit was $319 million, operating income was $200 million, and EBITDA was $400 million. On a first-half basis, revenue increased 26% year over year, gross margin expanded 360 basis points, operating income more than doubled, and EPS more than tripled versus the first half of 2025. For Q3 2026, management guided revenue to $1.95 billion-$2.05 billion, gross margin to 18.5%-19.5%, operating expenses of about $140 million, net income of $180 million-$205 million, and EPS of $0.72-$0.82. Full-year 2026 capex remains expected at $2.5 billion-$3.0 billion, and the full-year tax rate is expected to be around 20%.

Kevin Engel framed the quarter as evidence that Amkor's strategy is working: higher utilization, richer advanced-packaging mix, and deeper customer partnerships. He emphasized broad-based demand across end markets, record computing and automotive/industrial revenue, and strong AI/HPC momentum. Strategically, he highlighted the TSMC and NVIDIA agreements, saying they reflect a broader industry shift toward advanced packaging becoming more critical and more collaborative over longer time horizons. His tone was constructive and confident, but he also acknowledged that some of the communications softness from the SiP migration will last beyond a single quarter.

Megan Faust said Q2 revenue beat the high end of guidance because of strong demand in computing and automotive/industrial, with gross margin and EPS also above expectations. She detailed Q2 gross margin of 16.8%, gross profit of $319 million, operating expenses of $119 million including a $21 million gain on sale of real estate, operating income of $200 million, net income of $174 million, EPS of $0.70, and EBITDA of $400 million. She also noted that in early May Amkor issued $1.15 billion of 0% convertible debt, ending Q2 with $2.5 billion of cash and short-term investments, $3.6 billion of total liquidity, $2.5 billion of total debt, and 1.8x debt-to-EBITDA. For Q3, she guided to $1.95 billion-$2.05 billion of revenue, 18.5%-19.5% gross margin, about $140 million of opex, and EPS of $0.72-$0.82, with capex still set at $2.5 billion-$3.0 billion.

Analysts focused heavily on the weaker-than-normal Q3 communications outlook, asking how much was driven by Android versus iOS and whether the SiP move to Vietnam was only a timing issue or a longer-lasting headwind. Management said about half of the Q3 decline reflects market factors such as memory constraints and typical build patterns, and the other half reflects the SiP transition; Kevin added that the impact will extend into Q4 and even the first half of next year in at least one application space. Questions also centered on gross margin progression and the NVIDIA agreement, where management said there is no step-function change to R&D, and the $1.5 billion prepayment is expected in 2027 and then returned as services are provided.