Amkor Technology (NASDAQ: AMKR) Posts Record Q2 Revenue of $1.9B, EPS Beats by 43%

Amkor Technology (NASDAQ: AMKR) reported record second-quarter 2026 revenue of $1.90 billion, up 25.6% year over year, while GAAP EPS of $0.70 beat the $0.49 consensus estimate by 42.6%. Shares fell 24.15% on Tuesday, July 28, 2026, while the S&P 500 declined 0.33%.

Q2 2026 Results

• Net sales of $1,898 million, up 25.6% from $1,511 million in Q2 2025, driven by record revenue in Computing and Automotive & Industrial end markets.
• GAAP EPS of $0.70 versus $0.22 in Q2 2025, a 218.2% year-over-year increase, beating the $0.49 analyst consensus by 42.6%.
• Gross margin expanded to 16.8% from 12.0% in Q2 2025, as all cost-of-sales line items declined as a share of revenue: materials (52.9% to 52.6%), labor (11.7% to 10.0%), depreciation (9.6% to 8.6%), and other manufacturing costs (13.8% to 12.0%).
• Operating income reached $199.9 million, up 117.3% year over year, with operating margin widening 4.4 percentage points to 10.5%.
• EBITDA of $400 million, compared with $259 million in Q2 2025.
• Net income attributable to Amkor of $173.8 million, up 219.3% from $54.4 million in Q2 2025.

What Drove the Results

GAAP EPS of $0.70 beat the $0.49 consensus by $0.21, while revenue of $1.90 billion reached a second-quarter record. The operating leverage behind the headline was substantial: gross margin expanded 480 basis points year over year to 16.8%, and operating income more than doubled to $199.9 million, reflecting broad cost-of-sales improvement across all four expense categories.

End-market distribution shifted modestly, with Computing holding at 22% of net sales and Automotive & Industrial rising to 22% from 20% in Q2 2025. Communications (smartphones, tablets) remained the largest segment at 42%. Advanced products, which include flip chip, memory, and wafer-level processing, generated $1,557 million of the quarter's $1,898 million in total sales. At quarter-end, total cash and short-term investments stood at $2.5 billion, matched by total debt of $2.5 billion.

CEO Kevin Engel noted that during the first half of 2026, the company expanded strategic partnerships across the semiconductor ecosystem and advanced customer programs in AI and high-performance computing, while continuing to build out advanced packaging and test capacity.

Q3 2026 Guidance and Capital Expenditures

For Q3 2026, Amkor guided net sales of $1.95 billion to $2.05 billion, with gross margin of 18.5% to 19.5% and net income of $180 million to $205 million, implying diluted EPS of $0.72 to $0.82. The company also set full-year 2026 capital expenditure guidance of $2.5 billion to $3.0 billion, reflecting continued investment in advanced packaging capacity.

Wall Street View

Amkor shares faced selling pressure on the day of the results, despite the earnings beat, with the Q3 revenue guidance range drawing investor scrutiny. Prior to results, analyst consensus stood at 7 Buy ratings and 8 Hold ratings among covered firms, with one Sell, per the most recent available data.

Investor Takeaway

Amkor's Q2 2026 results demonstrated meaningful operating leverage, with gross margin expanding nearly five percentage points year over year to 16.8% and operating income more than doubling on a 25.6% revenue increase. The Q3 guidance range of $1.95 billion to $2.05 billion in net sales, combined with $2.5 billion to $3.0 billion in planned full-year capital expenditure, positions the balance sheet as a key factor investors will assess: at quarter-end, cash and total debt were both $2.5 billion, leaving limited margin for error if demand softens. The trajectory of AI and HPC customer programs will be central to whether the company's capacity investments translate into the margin expansion implied by the Q3 gross margin guidance of 18.5% to 19.5%.