Earnings

Amkor's Communications Mix Shrinks as Computing Grows

The Tip Desk · October 27, 2026 · 2 min read

Net sales reached $1.99 billion in the third quarter as Communications fell to 37% of the mix and Computing rose to 26%.

Amkor Technology (AMKR), a leading provider of semiconductor packaging and test services, reported net sales of $1.99 billion for the third quarter ended September 30, 2026, a sequential increase from $1.90 billion in the second quarter after sequential growth had slowed from the first quarter’s $1.68 billion.

Gross margin expanded to 18.3% from 16.8% in the second quarter, following a 260-basis-point sequential expansion in the second quarter from 14.2% in the first quarter. Operating income rose to $225 million from $200 million. Net income attributable to Amkor was $191 million, or $0.76 a share, compared with $174 million, or $0.70 a share, in the prior quarter. EBITDA increased to $435 million from $400 million.

President and chief executive officer Kevin Engel said the company delivered record revenue in Computing and Automotive & Industrial end markets and continued margin expansion, despite expected weakness in Communications. He said Amkor is executing on its strategy, advancing key customer programs and benefiting from expanding customer commitments that improve visibility and support disciplined investment to meet future demand.

Advanced products, which include flip chip, memory and wafer-level processing and related test services, accounted for $1.63 billion of net sales, up from $1.56 billion in the second quarter. Mainstream products, which include all other wirebond packaging and related test services, rose to $359 million from $341 million. Packaging services remained 88% of sales and test services 12%. Net sales from the top ten customers were 66%.

The end-market mix shifted. Communications, covering smartphones and tablets, fell to 37% of net sales from 42% in the second quarter. Computing, covering data center, infrastructure, PC/laptop and storage, rose to 26% from 22%. Automotive, industrial and other held at 22%. Consumer rose to 15% from 14%.

Cost of sales as a percentage of net sales fell. Materials declined to 50.7% from 52.6%. Labor was 10.1%, depreciation 8.6% and other manufacturing 12.3%.

At September 30, 2026, total cash and short-term investments was $2.4 billion and total debt was $2.5 billion. The company paid a quarterly dividend of $0.08352 a share on September 22, 2026. During the third quarter it purchased approximately $32 million of common stock under its stock repurchase program, after the board authorized up to $300 million of buybacks in April.

For the fourth quarter of 2026, Amkor guided net sales of $1.9 billion to $2.0 billion, below the $1.95 billion to $2.05 billion range it had given for the third quarter. Gross margin is guided at 18.0% to 19.0%. Net income is guided at $160 million to $185 million, or $0.65 to $0.75 a share. Full-year 2026 capital expenditures were updated to approximately $2.5 billion, narrowing the prior $2.5 billion to $3.0 billion range.

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