Amkor Technology (AMKR) reported second-quarter earnings of 70 cents per share on revenue of $1.9 billion, beating analyst estimates by $0.23 and topping revenue expectations, according to a company announcement after the market close on Monday, July 27, 2026. Analysts polled by FactSet had expected earnings of 48 cents per share.
Q2 2026 earnings per share — $0.23 above consensus estimate.
Despite the earnings beat, Amkor's stock experienced a decline. Reports on the extent of the drop vary: some sources indicate a 6.54% fall, while others report a 25% decline. The stock had hit a 52-week high of $96.68 on June 22, 2026, after more than doubling from late March 2026. Over the past year, Amkor shares have gained 116%, outperforming the iShares Semiconductor ETF (SOXX) which posted a 101% return.
The company achieved record revenue in Q2 2026, growing 26% year-on-year, driven by record performance in computing and automotive/industrial sectors. Average manufacturing utilization rose from the 50s to the 70s, and several advanced technology platforms are now operating at full capacity. EBITDA for the quarter was $400 million.
However, Amkor provided a soft Q3 2026 revenue guidance of approximately $2 billion at the midpoint, below the Wall Street consensus of $2.09 billion. Q3 computing revenue is expected to accelerate nearly 30% sequentially, fueled by AI data center demand and the ramp of a major new HDFO CPU program, but communications revenue is projected to decline in the high single digits due to System-in-Package (SiP) migration timing, memory supply constraints, and changing build patterns.
Management attributed half of the communications decline to market factors like memory constraints and build patterns, and half to the internal SiP migration to Vietnam. The SiP transition headwind is expected to persist beyond Q3, likely extending into Q4 2026 and the first half of 2027. Additionally, Android sales in the communications segment declined 20% due to memory supply constraints.
The strategic moves should strengthen the company's competitive position and earnings power.
Strategic Partnerships and Expansion
Amkor has strategic agreements with TSMC and NVIDIA, representing a broader industry transition. The partnership with TSMC includes a 10-year agreement establishing a framework for integrated manufacturing in Arizona. It also involves a prepayment expected to be received in 2027, which will be returned as services are rendered over a 5-to-10-year period. These partnerships reinforce long-term loading confidence for US operations and align with next-generation AI infrastructure roadmaps.
Phase 1 of Amkor's Arizona facility is currently fully committed; management is evaluating further expansion to meet demand for US-based advanced packaging and test services. The company's future profitability targets for 2028 incorporate expected headwinds from initial underutilization and depreciation of new regional sites in the US and Asia.
Amkor maintains its 2026 capital spending plan of $2.5 billion to $3 billion. R&D spending is expected to remain between 3% and 5% of capital. The company recorded a $21 million gain on the sale of real estate in Q2 2026, and its Q2 tax rate of 14% was lower than expected due to $14 million in net discrete tax benefits. Amkor had $1.85 billion in cash and $1.62 billion in debt as of the end of Q2 2026.
Analyst Reactions and Valuation
Following the results, UBS analyst Randy Abrams raised Amkor's price target from $80 to $90 and upgraded the stock from Neutral to Buy. Needham analyst Charles Shi set a price target at $90 with a Buy rating. Amkor has a consensus 'Moderate Buy' rating from 10 Wall Street analysts with a median price target of $75.75, implying a 63.7% upside. The most bullish analyst target of $90 implies a 94.5% upside from the current share price.
Amkor's stock gain over the past year, outperforming the iShares Semiconductor ETF.
Amkor's forward GAAP price-to-earnings ratio of 28.14 is 61.52% above its 5-year average of 17.42, while its forward price-to-sales ratio of 1.96 is 77.63% above its 5-year average of 1.11. Analysts expect EPS growth of 38.67% in 2026, followed by 17% to 22% growth in the next two years.