AMKR earnings analysis
What we found in AMKR's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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.
- 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.
- 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%.
- 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.
- 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.
- 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.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.7
- Gross margin
- 16.8%
- Operating margin
- 10.5%
- 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 they said about what is next.
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.
The filing reads better than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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