Amkor Slides After Hours as Q3 Misses Estimates and Q4 Guidance Falls Short
Amkor reported third-quarter EPS of $0.76 on $1.99 billion in sales, both short of estimates, and guided fourth-quarter EPS and revenue below consensus, even as gross margin climbed to 18.3% and capex is guided to about $2.5 billion.
Amkor Technology (AMKR) reported third-quarter earnings of $0.76 per diluted share on $1.99 billion in sales after the close on Monday, missing analyst estimates of $0.78 and $2.04 billion, and guided the fourth quarter below consensus. Shares, which closed at $39.30, were down $2.49 in after-hours trading, a drop of about 6.3% by our calculation.
Third-quarter results
| Metric | Q3 2026 | Consensus | Q3 2025 |
|---|---|---|---|
| Diluted EPS | $0.76 | $0.78 | $0.51 |
| Net sales | $1,990.6M | $2.04B | $1,987.0M |
| Gross margin | 18.3% | — | 14.3% |
| Operating income | $224.7M | — | $158.9M |
| Net income | $190.6M | — | $126.6M |
| EBITDA (non-GAAP) | $435M | — | $340M |
Sales were roughly flat from a year ago, up 0.2%, but profitability improved sharply. By our calculation, EPS rose about 49% from $0.51 and net income about 51%, as gross margin widened by four percentage points. Sales rose about 5% from the second quarter's $1,898 million, and EPS from $0.70. Revenue missed the consensus estimate by roughly 2%, and EPS by $0.02.
President and CEO Kevin Engel said Amkor "delivered a strong quarter, with record revenue in Computing and Automotive & Industrial end markets," and pointed to continued margin expansion despite expected weakness in Communications.
Where the sales came from
| Category | Q3 2026 |
|---|---|
| Advanced products | $1,632M |
| Mainstream products | $359M |
| Communications | 37% of sales |
| Computing | 26% of sales |
| Automotive, industrial and other | 22% of sales |
| Consumer | 15% of sales |
By our calculation, advanced products made up about 82% of third-quarter sales.
Fourth-quarter guidance falls short
| Q4 2026 outlook | Guidance | Consensus |
|---|---|---|
| Net sales | $1.9B to $2.0B | $2.04B |
| Gross margin | 18.0% to 19.0% | — |
| Net income | $160M to $185M | — |
| Diluted EPS | $0.65 to $0.75 | $0.77 |
The top of the EPS range sits below the $0.77 consensus, and even the top of the revenue range falls under the $2.04 billion estimate. By our calculation, the midpoints of $0.70 in EPS and $1.95 billion in sales are about 9% and 4% below consensus, and the sales midpoint implies a roughly 2% sequential decline. Management expects gross margin to hold near this quarter's level.
Capital spending outlook
Amkor updated its full-year 2026 capital expenditures outlook to approximately $2.5 billion. It had spent $1.24 billion on property, plant and equipment through the first nine months, which by our calculation implies roughly $1.26 billion in the fourth quarter. The company ended the quarter with $2.4 billion in cash and short-term investments against $2.5 billion in total debt.
What it means for investors
The quarter shows Amkor earning more on flat sales as its mix shifts toward advanced packaging, but the Q4 outlook suggests that growth is pausing while spending runs near $2.5 billion for the year. Even the top of the guided EPS range, $0.75, would fall short of the $0.77 consensus.
Sources: Amkor Technology, third-quarter 2026 results and business outlook (Oct. 26), and earnings announcement and conference call details. Consensus figures are analyst estimates. This is informational, not a recommendation to buy or sell.
Readers also read
MarketCatalyst LLC is not a registered investment advisor and does not manage client assets. Content on this platform is provided for informational and educational purposes only. It is not investment advice, and MarketCatalyst is not a stock-picking or trade-alert service. Trading stocks and options involves risk, including the possible loss of principal. Consider your own goals, time horizon, and risk tolerance, and consult a qualified financial advisor before making any investment decision.