Third Quarter 2026
Filed Oct 26, 2026Amkor reported third-quarter net sales of $1.99 billion, gross profit of $364 million, operating income of $225 million, net income of $191 million and EBITDA of $435 million.
Third-quarter revenue was broadly stable year over year but rose sequentially, while gross margin, operating income, net income attributable to Amkor and EBITDA were higher versus both reported comparison periods. Computing and Automotive, industrial and other reached higher end-market mix percentages while Communications declined.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales (Q3 2026)GAAP | $1.99B | – | – |
| Gross profit (Q3 2026)GAAP | $363.5M | – | – |
| Gross margin (Q3 2026)GAAP | 18.3% | – | – |
| Cost of sales (Q3 2026)GAAP | $ 1,627,028 | – | – |
| Materials as a percentage of net sales (Q3 2026)GAAP | 50.7% | – | – |
| Labor as a percentage of net sales (Q3 2026)GAAP | 10.1% | – | – |
| Depreciation as a percentage of net sales (Q3 2026)GAAP | 8.6% | – | – |
| Other manufacturing as a percentage of net sales (Q3 2026)GAAP | 12.3% | – | – |
| Selling, general and administrative (Q3 2026)GAAP | $ 99,026 | – | – |
| Research and development (Q3 2026)GAAP | $ 39,792 | – | – |
| Total operating expenses (Q3 2026)GAAP | $ 138,818 | – | – |
| Operating income (Q3 2026)GAAP | $224.7M | – | – |
| Operating income margin (Q3 2026)GAAP | 11.3% | – | – |
| Interest expense (Q3 2026)GAAP | $ 17,916 | – | – |
| Other (income) expense, net (Q3 2026)GAAP | $ (23,367) | – | – |
| Total other (income) expense, net (Q3 2026)GAAP | $ (5,451) | – | – |
| Income before taxes (Q3 2026)GAAP | $ 230,162 | – | – |
| Income tax expense (Q3 2026)GAAP | $ 39,243 | – | – |
| Net income (Q3 2026)GAAP | $190.9M | – | – |
| Net income attributable to Amkor (Q3 2026)GAAP | $190.6M | – | – |
| Diluted earnings per common share (Q3 2026)GAAP | $ 0.76 | – | – |
| Basic earnings per common share (Q3 2026)GAAP | $ 0.77 | – | – |
| Diluted shares used in computing per common share amounts (Q3 2026)GAAP | 249,526 | – | – |
| EBITDA (Q3 2026)non-GAAP | $435M | – | – |
| Net sales (nine months ended September 30, 2026)GAAP | $ 5,573,223 | – | – |
| Gross profit (nine months ended September 30, 2026)GAAP | $ 921,151 | – | – |
| Operating income (nine months ended September 30, 2026)GAAP | $ 524,852 | – | – |
| Net income attributable to Amkor (nine months ended September 30, 2026)GAAP | $ 447,717 | – | – |
| Diluted earnings per common share (nine months ended September 30, 2026)GAAP | $ 1.79 | – | – |
| Net cash provided by operating activities (nine months ended September 30, 2026)GAAP | 868,345 | – | – |
| Payments for property, plant and equipment (nine months ended September 30, 2026)GAAP | (1,236,806) | – | – |
| Net cash used in investing activities (nine months ended September 30, 2026)GAAP | (1,344,185) | – | – |
| Net cash provided by financing activities (nine months ended September 30, 2026)GAAP | 833,512 | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Advanced productsAdvanced products include flip chip, memory and wafer-level processing and related test services. | $ 1,632 | – | – |
| Mainstream productsMainstream products include all other wirebond packaging and related test services. | 359 | – | – |
Fourth quarter 2026 outlook
- RevenueNet sales of $1.9 billion to $2.0 billion
- Gross marginGross margin of 18.0% to 19.0%
- NoteNet income of $160 million to $185 million, or $0.65 to $0.75 per diluted share
- NoteFull year 2026 capital expenditures updated to approximately $2.5 billion
Capital returns
- The company paid a quarterly dividend of $0.08352 per share on September 22, 2026.
- During the third quarter of 2026, the company purchased approximately $32 million of common stock under its stock repurchase program.
- Payments of dividends for the nine months ended September 30, 2026 were (62,101).
- Payments for repurchase of common stock for the nine months ended September 30, 2026 were (32,328).
What drove it
- The company cited record revenue in Computing and Automotive & Industrial end markets and expected weakness in Communications.
- Communications represented 37% of Q3 2026 end-market distribution, versus 42% in Q2 2026 and 51% in Q3 2025.
- Computing represented 26% of Q3 2026 end-market distribution, versus 22% in Q2 2026 and 19% in Q3 2025.
- Automotive, industrial and other represented 22% of Q3 2026 end-market distribution, versus 22% in Q2 2026 and 16% in Q3 2025.
- Consumer represented 15% of Q3 2026 end-market distribution, versus 14% in Q2 2026 and 14% in Q3 2025.
- Packaging services represented 88% of Q3 2026 sales and test services represented 12%.
- Net sales from top ten customers represented 66% of Q3 2026 sales, versus 66% in Q2 2026 and 73% in Q3 2025.
Concerns
- Communications was 37% of Q3 2026 end-market distribution, down from 42% in Q2 2026 and 51% in Q3 2025.
- The company identified its absence of backlog and the short-term nature of its customers’ commitments as risks.
- The company identified substantial investments in equipment and facilities, substantial indebtedness, and difficulty achieving relatively high-capacity utilization rates as risks.
- Full year 2026 capital expenditures were updated to approximately $2.5 billion.
What to watch
- Fourth-quarter 2026 net sales guidance of $1.9 billion to $2.0 billion.
- Fourth-quarter 2026 gross margin guidance of 18.0% to 19.0%.
- Fourth-quarter 2026 net income guidance of $160 million to $185 million, or $0.65 to $0.75 per diluted share.
- Whether Computing and Automotive, industrial and other end-market mix continues to offset expected weakness in Communications.
- Execution of the updated full year 2026 capital expenditures plan of approximately $2.5 billion.
Balance sheet and cash flow
- At September 30, 2026, total cash and short-term investments was $2.4 billion, and total debt was $2.5 billion.
- Cash and cash equivalents at September 30, 2026: $ 1,603,015; December 31, 2025: $ 1,378,347.
- Short-term investments at September 30, 2026: 773,181; December 31, 2025: 613,038.
- Short-term borrowings and current portion of long-term debt at September 30, 2026: $ 149,502; December 31, 2025: $ 162,430.
- Long-term debt at September 30, 2026: 2,317,733; December 31, 2025: 1,282,816.
- Property, plant and equipment, net at September 30, 2026: 4,697,784; December 31, 2025: 3,870,808.
- Capital expenditures payable at September 30, 2026: 496,129; December 31, 2025: 243,543.
- Total assets at September 30, 2026: $ 10,042,224; December 31, 2025: $ 8,136,309.
- Total liabilities at September 30, 2026: 5,206,032; December 31, 2025: 3,630,022.
- Total equity at September 30, 2026: 4,836,192; December 31, 2025: 4,506,287.
- Cash, cash equivalents and restricted cash, end of period for the nine months ended September 30, 2026: $ 1,804,744; 2025: $ 1,556,414.
- Proceeds from long-term debt for the nine months ended September 30, 2026: 1,150,000; 2025: 1,000,000.
- Payments of long-term debt for the nine months ended September 30, 2026: (108,444); 2025: (360,527).
Analysis
Amkor reported Q3 2026 net sales of $ 1,990,557, compared with $ 1,986,968 in Q3 2025 and $1,898 in Q2 2026. The reported sales mix shifted away from Communications, which was 37% of end-market distribution, versus 51% a year earlier, while Computing increased to 26% from 19% and Automotive, industrial and other increased to 22% from 16%. The company described Computing and Automotive & Industrial revenue as records and characterized Communications weakness as expected.
Profitability strengthened materially. Gross margin was 18.3%, versus 14.3% in Q3 2025 and 16.8% in Q2 2026, while operating income was $ 224,711, compared with $ 158,927 a year earlier and $200 million in Q2 2026. Materials were 50.7% of net sales, compared with 57.5% in Q3 2025, while depreciation was 8.6%, compared with 7.5%. Net income attributable to Amkor was $ 190,613 and diluted earnings per common share were $ 0.76, compared with $ 126,589 and $ 0.51 in Q3 2025.
EBITDA, a non-GAAP measure, was $ 435, compared with $ 340 in Q3 2025 and $ 400 in Q2 2026. For the nine months ended September 30, 2026, net cash provided by operating activities was 868,345, while payments for property, plant and equipment were (1,236,806). The company reported total cash and short-term investments of $2.4 billion and total debt of $2.5 billion at September 30, 2026. It also paid a quarterly dividend of $0.08352 per share and purchased approximately $32 million of common stock during the quarter.
For Q4 2026, Amkor guided to net sales of $1.9 billion to $2.0 billion, gross margin of 18.0% to 19.0%, and net income of $160 million to $185 million, or $0.65 to $0.75 per diluted share. The revenue outlook brackets the reported Q3 net-sales level, while the gross-margin outlook encompasses the Q3 reported margin. The company also updated full-year 2026 capital expenditures to approximately $2.5 billion, making investment execution, customer commitments and end-market mix central reported items to monitor.
Management, verbatim
Amkor delivered a strong quarter, with record revenue in Computing and Automotive & Industrial end markets and continued margin expansion, despite expected weakness in Communications.
Kevin Engel, president and chief executive officer
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.
Kevin Engel, president and chief executive officer
Not in the filing
stated, not guessed- Previous-quarter outlook was not provided, so comparison of actual results with prior guidance is unavailable.
- Free cash flow was not reported.
- Fourth-quarter 2026 operating-expense guidance was not reported.
- Fourth-quarter 2026 tax-rate guidance was not reported.
- A non-GAAP earnings-per-share measure was not reported.
- Quarterly cash flow from operations and quarterly capital expenditures were not reported.
- Year-over-year and sequential percentage changes for product revenue categories were not reported.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.