Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 27, 2026 · Beat 5 of last 6 quarters
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Amkor's record computing revenue and the new HDFO CPU ramp underscore the accelerating demand for advanced packaging in AI data center buildouts. The TSMC and NVIDIA partnerships signal deeper supply chain integration and capacity commitments, positioning Amkor as a critical node in the U.S. advanced packaging ecosystem. The company's capacity expansion across Arizona, Korea, and Vietnam aligns with the multi-year AI infrastructure investment cycle.
Amkor delivered record Q2 revenue of $1.9 billion, up 26% year-over-year, with all end markets growing. Computing and automotive/industrial both set quarterly records, with computing up 20% sequentially on AI data center demand and automotive/industrial up 17% on ADAS strength. Gross margin expanded to 16.8%, and EPS of $0.70 more than tripled year-over-year. The company announced a 10-year advanced packaging agreement with TSMC and a multi-year strategic partnership with NVIDIA, and issued $1.15 billion of 0% convertible debt in May.
Management guided Q3 revenue to $1.95B–$2.05B, with gross margin expanding to 18.5%–19.5% driven by a richer mix of advanced technologies and continued operating leverage. Computing revenue is expected to accelerate to nearly 30% sequential growth in Q3, driven by AI data center demand and the HDFO CPU ramp, while communications is expected to decline high single digits sequentially due to the SiP move to Vietnam, memory supply constraints, and build pattern changes. The SiP headwind is expected to extend into Q4 and the first half of 2027. Full-year CapEx remains $2.5B–$3.0B, with Phase 1 of Arizona now fully committed and construction continuing to progress.
“As advanced packaging, becomes increasingly strategic, customers are placing greater emphasis on manufacturing scale, technology leadership and supply chain resiliency.”
on Advanced packaging strategic importance
“The level of long-term collaboration and visibility we are experiencing today is meaningfully different from previous industry cycles.”
on Customer engagement
“Our projections now show Phase 1 as fully committed.”
on Arizona capacity
On the smartphone outlook, you are guiding down versus normal. Could you go through between Android and iOS, your expectation? And is the SiP move a timing issue that swings the build up in Q4?
Kevin Engel explained that roughly half of the Q3 communications decline is due to market-driven dynamics (memory constraints and build patterns) and half is due to the SiP move to Vietnam. The SiP headwind is not a one-quarter dynamic and will extend into Q4 and the first half of next year. Android weakness is driven by materials and overall demand, while iOS has different dynamics.
As you do R&D work with NVIDIA, what is the impact to R&D and operating expense, and when does the $1.5 billion prepayment come on to the balance sheet?
Kevin Engel said there is no step-function change in R&D spend; it will remain at 3%–5% of capital. The prepayment will be received in 2027 and returned to the customer as services are provided in the U.S., with the agreement expected to last 5–10 years.
Could we bridge the gross margin going up 220 basis points sequentially? What is the impact of SiP and utilization expectation?
Kevin Engel and Megan Faust explained that Q2 gross margin expansion was two-thirds volume/utilization and one-third mix. For Q3, the expansion is predominantly driven by product mix, as the compute ramp accelerates and communications declines.