Highlights

  • Third quarter 2026 net sales were $1.99 billion, with net income of $191 million, or $0.76 per diluted share.
  • Gross margin was 18.3% in the third quarter, against 16.8% in the second quarter of 2026 and 14.3% a year earlier.
  • Amkor guided fourth quarter net sales of $1.9 billion to $2.0 billion and net income of $160 million to $185 million.
  • Full year 2026 capital expenditures were updated to approximately $2.5 billion, with a step-up expected in 2027 for Arizona, Korea and Vietnam.

Amkor Technology, Inc. (NASDAQ: AMKR) shares were trading at USD 38.88 on October 27, 2026, up 5.62%, with a relative volume at time of 2.97. The semiconductor packaging and test provider reported third quarter 2026 results on October 26, paid a quarterly dividend of $0.08352 per share on September 22, 2026, and issued fourth quarter guidance.

Amkor is incorporated in Delaware and lists its principal executive offices at 2045 East Innovation Circle in Tempe, Arizona. The company provides outsourced semiconductor packaging and test services, with a portfolio that includes advanced packaging, wafer-level processing and system-in-package solutions for smartphones, data centers, artificial intelligence, automobiles and wearables. It reports advanced products and mainstream products, and packaging services made up 88% of third quarter net sales.

Third Quarter Results

For the quarter ended September 30, 2026, Amkor reported net sales of $1.99 billion, compared with $1,898 million in the second quarter of 2026 and $1,987 million in the third quarter of 2025. Gross profit was $364 million and operating income was $225 million, an operating income margin of 11.3%. Net income attributable to Amkor was $191 million, or $0.76 per diluted share, against $174 million, or $0.70 per share, in the second quarter. EBITDA, a non-GAAP measure, was $435 million.

Advanced products net sales were $1,632 million, compared with $1,684 million a year earlier, while mainstream products were $359 million, compared with $303 million. Net sales to the top ten customers were 66% of the total. By end market, Communications was 37% of net sales, Computing 26%, Automotive, industrial and other 22%, and Consumer 15%.

On the call, management said Communications revenue declined 8% sequentially, citing the migration of system-in-package technology to Vietnam, memory supply constraints, changes in build patterns, and component shortages affecting premium tier smartphones and IoT wearable devices. Computing revenue increased 25% sequentially, Automotive and Industrial increased 7% and Consumer increased 10%. Management said foreign currency and a July earthquake at its Kumamoto, Japan facility lowered gross margin by approximately 60 basis points sequentially, and that the facility returned to full operations within the quarter.

Balance Sheet and Capital Returns

At September 30, 2026, total cash and short-term investments were $2.4 billion and total debt was $2.5 billion. Management said total liquidity was $3.4 billion and the debt-to-EBITDA ratio was 1.7x. During the third quarter, Amkor purchased approximately $32 million of common stock under its stock repurchase program. The company said the declaration and payment of future dividends are subject to Board approval.

Fourth Quarter 2026 Outlook

Amkor's guidance for the fourth quarter of 2026 calls for net sales of $1.9 billion to $2.0 billion and gross margin of 18.0% to 19.0%. It expects net income of $160 million to $185 million, or $0.65 to $0.75 per diluted share. Management said it expects operating expenses of approximately $140 million and a full year effective tax rate in the high teens percent.

Management said it expects Communications revenue to decline high single digits sequentially in the fourth quarter and Consumer revenue to decline into the mid-teens percent sequentially, as component shortages continue. It expects Computing revenue to increase low double digits sequentially and Automotive and Industrial revenue to grow low single digits.

Full year 2026 capital expenditures were updated to approximately $2.5 billion, which management tied to the timing of construction payments for its Arizona campus. Phase 1 construction is on schedule for completion by the end of 2027. Management expects a step-up in 2027 capital expenditures and plans to give specific 2027 guidance on its fourth quarter call in February. It said customer advance payments are expected to fund a portion of that spending, with arrangements executed with a dozen customers since 2025.