Amkor third-quarter net income rises to $191 million on margin gains
Gross margin reached 18.3% and the company guided fourth-quarter net income to $160 million to $185 million.
Key takeaways
- Amkor Technology, Inc. (AMKR) said in a press release on Oct. 26, 2026 that third-quarter net income rose to $191 million from $127 million a year earlier, on net sales of $1,991 million. For the fourth quarter it guided to net income of $160 million to $185 million and net sales of $1.9 billion to $2.0 billion.
Amkor Technology, Inc. (AMKR) reported third-quarter net income of $191 million, up from $127 million a year earlier, the company said Monday in a press release furnished with a regulatory filing.
The results cover the three months ended Sept. 30, 2026. Amkor is an outsourced semiconductor packaging and test services provider.
Here's how the company did:
- Earnings per diluted share: $0.76, vs. $0.51 a year earlier
- Net sales: $1,991 million, vs. $1,987 million a year earlier
- Gross margin: 18.3%, vs. 14.3% a year earlier
- Operating income: $225 million, vs. $159 million a year earlier
- EBITDA: $435 million, vs. $340 million a year earlier
Net sales were $1,991 million, compared with $1,898 million in the second quarter.
Gross margin rose to 18.3% from 16.8% in the second quarter and 14.3% a year earlier.
Operating income margin was 11.3%, compared with 10.5% in the second quarter and 8.0% a year earlier.
EBITDA, or earnings before interest, taxes, depreciation and amortization, was $435 million, up from $400 million in the second quarter and $340 million a year earlier. The company defines EBITDA as net income before interest expense, income tax expense and depreciation and amortization.
"Amkor delivered a strong quarter, with record revenue in Computing and Automotive & Industrial end markets and continued margin expansion, despite expected weakness in Communications," said Amkor's president and chief executive officer, Kevin Engel.
Engel also said: "We are executing on our strategy, advancing key customer programs and benefiting from expanding customer commitments that improve visibility and support disciplined investment to meet future demand."
Product and end-market mix
Advanced products, which include flip chip, memory and wafer-level processing and related test services, generated $1,632 million of net sales. That compares with $1,557 million in the second quarter and $1,684 million a year earlier.
Mainstream products, which the release defines as all other wirebond packaging and related test services, had net sales of $359 million. That compares with $341 million in the second quarter and $303 million a year earlier.
Packaging services made up 88% of net sales and test services 12%. Net sales from the top ten customers were 66%, compared with 73% a year earlier.
The release also broke net sales down by end market.
| End market | Q3 2026 | Q2 2026 | Q3 2025 |
|---|---|---|---|
| Communications (smartphones, tablets) | 37% | 42% | 51% |
| Computing (data center, infrastructure, PC/laptop, storage) | 26% | 22% | 19% |
| Automotive, industrial and other (ADAS, electrification, infotainment, safety) | 22% | 22% | 16% |
| Consumer (AR & gaming, connected home, home electronics, wearables) | 15% | 14% | 14% |
The communications share fell to 37% from 51% a year earlier, while computing rose to 26% from 19%.
Fourth-quarter guidance
For the fourth quarter, the company guided to net sales of $1.9 billion to $2.0 billion and gross margin of 18.0% to 19.0%.
It guided net income of $160 million to $185 million, or $0.65 to $0.75 per diluted share.
The company also updated its full-year 2026 capital expenditure figure to approximately $2.5 billion. The release did not give a reason for the update or the prior figure.
Nine-month results, cash and capital spending
For the nine months ended Sept. 30, net sales were $5.57 billion, compared with $4.82 billion a year earlier. Net income attributable to Amkor was $448 million, against $202 million, and diluted earnings per share were $1.79, against $0.81.
Payments for property, plant and equipment totaled $1.24 billion in the nine months, compared with $473 million a year earlier.
At Sept. 30, total cash and short-term investments were $2.4 billion and total debt was $2.5 billion.
The company paid a quarterly dividend of $0.08352 per share on Sept. 22, 2026. Future dividends, and their record and payment dates, remain subject to approval by the Board of Directors.
During the third quarter, Amkor bought approximately $32 million of common stock under its stock repurchase program.