10-Q · April 28, 2026
Amkor reported Q1 2026 net sales of $1,684,701,000, up 27.5% year-over-year, with gross margin improving to 14.2% (from 11.9%) and operating margin to 6.0% (from 2.4%). Diluted EPS was $0.33 and operating cash flow…
Earnings analysis · 10-Q
AMKR earnings analysis
Filed July 28, 2026 · Our reading of the company's report
The latest report
Amkor delivered record Q2 revenue of $1.898 billion, up 25.6% year over year and 13.4% sequentially, while diluted EPS increased to $0.70 from $0.22 a year ago and $0.33 in Q1. Higher utilization lifted gross margin to…
Read full summary
Amkor delivered record Q2 revenue of $1.898 billion, up 25.6% year over year and 13.4% sequentially, while diluted EPS increased to $0.70 from $0.22 a year ago and $0.33 in Q1. Higher utilization lifted gross margin to 16.8% and operating margin to 10.5%, with growth across communications, automotive/industrial, and computing. The principal offset is an aggressive investment cycle: six-month free cash flow was negative $269.9 million as capex reached $688.4 million, and management expects $2.5 billion to $3.0 billion of 2026 capex.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $0.7
- Segment
- Communications end market: revenue grew 32% year over year in Q2 2026, driven primarily by increased supported content in premium-tier smartphones.
- Segment
- Automotive and industrial end market: revenue grew 35% year over year in Q2 2026, driven by ADAS and industrial applications.
- Segment
- Computing end market: revenue grew 23% year over year in Q2 2026, primarily driven by datacenter strength.
What stood out
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Revenue reached $1.898B, up 25.6% YoY
Q2 net sales rose $386.6 million, or 25.6% year over year, to $1.898 billion. Sequentially, revenue increased 13.4% from $1.685 billion in Q1 2026.
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Utilization drove substantial margin expansion
Gross margin expanded 4.8 percentage points year over year to 16.8%, and operating margin rose 4.4 points to 10.5%, primarily on higher factory utilization. Versus Q1 2026, gross margin increased 2.6 points and operating margin increased 4.5 points.
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EPS more than tripled year over year
Diluted EPS was $0.70, up from $0.22 in Q2 2025 and $0.33 in Q1 2026. The reported result exceeded the $0.47 consensus estimate by 48.9%.
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Broad end-market growth led by auto/industrial
All reported end markets grew: automotive and industrial increased 35%, communications increased 32%, and computing increased 23% year over year. Datacenter demand was the stated driver for computing growth.
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Operating cash flow increased to $381.6M
Six-month operating cash flow increased $99.0 million year over year to $381.6 million, reflecting higher operating profit despite working-capital headwinds.
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Liquidity supports near-term investment plan
Liquidity was substantial at $2.512 billion of cash, cash equivalents and short-term investments as of June 30, 2026, alongside $1.0 billion of revolver availability. Management believes available sources are sufficient for requirements over at least the next 12 months.
What to watch
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Investment cycle has turned free cash flow negative
Capital spending totaled $688.4 million in the first six months, exceeding $381.6 million of operating cash flow and resulting in negative free cash flow of $269.9 million. Management expects full-year 2026 capex of approximately $2.5 billion to $3.0 billion, principally for the Arizona Facility.
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Debt rose with $1.15B convertible issuance
Debt was $2.486 billion at June 30, 2026, including $150.8 million due within 12 months, following the May issuance of $1.15 billion of 2031 convertible notes. Total remaining interest-payment obligations were $333.1 million.
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Arizona funding and construction milestones are critical
The filing adds execution risk around conditional government support: up to $407 million of CHIPS Act direct funding is tied to construction and production milestones, and no funds had been received as of June 30, 2026. Purchase obligations were $1.465 billion, with $1.395 billion payable within 12 months.
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AI demand slowdown could strand new capacity
Risk disclosures emphasize that AI/HPC packaging demand may not be sustained; a demand reversal could create excess capacity and reduce utilization. This matters given the planned $2.5 billion to $3.0 billion of 2026 capex.
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Customer concentration remains elevated
Customer concentration remains material: the ten largest customers represented 72% of 2025 net sales. Reduced orders, pricing pressure, or loss of a major customer could quickly affect utilization because the business has limited backlog.
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FX exposure and Japan operational disruption
A 10% appreciation of foreign currencies against the U.S. dollar would have reduced six-month operating income by approximately $84 million, based on the company’s sensitivity analysis. The filing also notes July 2026 earthquake-related interruption at its Kumamoto, Japan facility.
Management's outlook
The 10-Q does not provide numeric revenue or EPS outlook. Management expects 2026 capital expenditures of approximately $2.5 billion to $3.0 billion, primarily reflecting Arizona Facility construction; Q3 revenue/EPS outlook was not included in the MD&A excerpt.
Earlier filings 4
10-K · February 20, 2026
Amkor reports revenue of $6,708 million for 2025, driven by growth in Advanced Products (Advanced Products $5,556 million, 82.8% of net sales). Management is executing on a technology- and footprint-led strategy…
10-Q · July 29, 2025
Amkor reported Q2 net sales of $1,511,392 (in thousands), up from $1,461,474 in Q2 2024, while gross profit fell to $181,897 (in thousands) from $212,375. Operating income improved to $91,967 (in thousands) (6.1%…
10-K · February 21, 2025
Amkor positions itself as the world’s largest U.S.-headquartered OSAT and a technology leader in advanced packaging, where Advanced Products accounted for $5,175 million or 81.9% of net sales in 2024 (total net sales…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.