NEW YORK, July 27, 2026, 19:19 (EDT)
- Second-quarter revenue surpassed FactSet projections by 4.7%, while earnings exceeded expectations by 46%.
- The midpoint for third-quarter revenue is 4.8% below consensus, while the earnings midpoint is ahead by 22%.
- Shares dropped 6.5% during the regular session and slid about 3.5% in after-hours trading.
Amkor’s stock fell following its Monday earnings report, with cautious sales guidance eclipsing a notable margin increase. Shares ended the session at $60.71, declining 6.5%, while the Nasdaq Composite slipped 0.18%. The stock was last seen at approximately $58.60 at 7 p.m. EDT.
U.S. markets had closed for the regular session, with after-hours trading still ongoing at the dateline time.
The investor indicator is positioned beneath the revenue figure. According to guidance midpoints, third-quarter gross profit is set to reach a preliminary $380 million, up 19.3% from the second quarter. Revenue would increase by just 5.4%.
Wall Street projected higher sales but lower earnings. Amkor’s revenue midpoint of $2.00 billion falls short of FactSet’s $2.10 billion consensus. Its midpoint for earnings, at $0.77, is 22% above the $0.63 estimate.
This comparison is based on Amkor’s projections and FactSet estimates. The gross-profit number is provisional, derived from the company’s midpoint guidance.
| Metric | Q2 actual | Q3 midpoint | Sequential change | Q3 consensus |
|---|---|---|---|---|
| Revenue | $1.898 billion | $2.000 billion | Up 5.4% | $2.10 billion |
| Gross margin | 16.8% | 19.0% | Increase of 220 basis points | — |
| Gross profit | $319 million | $380 million | Rising 19.3% | — |
| Diluted EPS | $0.70 | $0.77 | Higher by 10.0% | $0.63 |
Initial estimate; Amkor did not provide gross-profit forecast.
The same operating leverage appeared in the second quarter. Revenue increased by 26% year-over-year to $1.898 billion. Gross margin widened by 480 basis points, reaching 16.8%. Operating income climbed to $200 million, more than twice the previous amount.
The cost bridge indicates improved fixed-cost absorption and a favorable product mix. Materials decreased by 30 basis points as a percentage of sales. Combined labor, depreciation, and other manufacturing expenses declined by 450 basis points. The statement did not specify how each factor contributed to the increase.
Advanced products accounted for $1.557 billion, representing 82% of overall sales. Both computing and automotive-industrial contributed 22% each to revenue. Communications continued as the leading segment, comprising 42%.
Chief Executive Kevin Engel stated that Amkor achieved “record second-quarter revenue and strong profitability.” He also pointed to record revenue in computing as well as automotive-industrial segments.
Customer concentration declined but stayed significant. The top 10 customers accounted for 66% of sales, compared with 72% a year earlier.
Nvidia Corp. NASDAQ:NVDA secured an agreement last week that bolsters future demand. The multi-year contract is valued at $1.5 billion and features a prepayment, amount undisclosed, to boost U.S. capacity.
Shares of Amkor surged 17% in after-hours trading following the announcement. By the end of trading on Monday, the stock sat below its regular-session closing price of $65.33 on July 23. The contract premium seen earlier had faded.
The third-quarter numbers indicate the contract extends beyond a single-quarter revenue occurrence, as anticipated for a multi-year deal. Amkor has yet to reveal the schedule for related production volumes.
Financing balances the equation. Operating cash flow in the first half totaled $382 million. Expenditures for plant and equipment amounted to $688 million. Long-term debt increased to $2.335 billion, compared to $1.283 billion at the end of the year. Cash and short-term investments stood at about $2.5 billion, nearly equal to total debt.
This week, Tuesday’s main trading session will challenge the outlook. Apple Inc. NASDAQ:AAPL will release results on Thursday, providing insight into smartphone demand. Communications remain 42% of Amkor’s sales composition.
Execution and capital intensity continue to present main risks. Amkor expects capital expenditures of $2.5 billion to $3.0 billion in 2026. Customer commitments are limited in duration, while the company’s facilities have significant fixed costs. Should demand stall, costly production capacity may go underutilised.
The upcoming shift in the stock could hinge on how well margins hold up. Achieving a 19% gross margin in the third quarter would continue the current pattern of operating leverage. Falling short of this figure could lead to renewed worries over the capital cycle.
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