Earnings Recap — Q3 FY2026
CY Q3 2026 · Reported August 5, 2026 · Beat 5 of last 7 quarters
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Kulicke & Soffa's results underscore the breadth of the AI infrastructure buildout, with data center expansion driving demand not only for advanced packaging (thermal compression) but also for traditional wire bonding across networking, power, and storage. The company's guidance for continued strength into fiscal 2027 and its capacity expansion in Singapore signal sustained investment in semiconductor assembly capacity to support AI-driven data center growth.
Kulicke & Soffa delivered a strong June quarter with revenue of $330.4 million, up 36.2% sequentially, driven by broad-based demand led by general semiconductor and memory. General semiconductor revenue grew 52.6% sequentially to $227.2 million, while memory grew 8.8% to $34 million and automotive/industrial grew 9% to $24.2 million. Advanced Solutions revenue exceeded last quarter's record by 20%. Gross margin came in at 47.8%, with GAAP EPS of $1.07 and non-GAAP EPS of $1.20. The company continued to ramp production aggressively to meet customer demand.
Management raised guidance for the September quarter to $375 million in revenue, up 13.5% sequentially, with gross margins of 48% and non-GAAP EPS of $1.42. They expect above-average demand to continue into fiscal 2027, citing high utilization rates (over 95% in China, ~90% in memory and general semi), inbound purchase orders extending into Q2 of fiscal 2027, and continued customer factory builds. For Advanced Solutions (primarily Fluxless Thermo-Compression), they reaffirmed the target of over $100 million in revenue for fiscal 2026 and guided to $150-200 million for fiscal 2027. They also plan to deliver a hybrid bonding tool to a customer in the first half of fiscal 2027 and continue investing in panel-level packaging. The Singapore capacity expansion remains on track for completion by the first fiscal half of 2027.
“Demand continues to improve at a faster pace than previously expected, and our operational teams are aggressively ramping production to support customer capacity and technology requirements.”
on Demand and production ramp
“It is increasingly evident that most performance-oriented logic and memory applications will continue to adopt more complex heterogeneous integration approaches.”
on Advanced packaging adoption
“We estimate that the data center market relies on wire bonding technology at least as much as, if not more than traditional semiconductor markets such as smartphones and PCs.”
on Data center wire bonding demand
Given the strong growth in September, are you seeing it across the board, like mid-teens growth for semi, memory and auto industrial? Or is one better than the other?
General semi and memory are leading the way. Automotive and industrial have improved but are still picking up from headwinds. General semi and memory are driving the ramp.
Should we see seasonality in March? Or do you think there won't be seasonality this time?
There is always some seasonality in the December quarter, but based on high utilization rates (over 95% in China, ~90% in memory and general semi), inbound POs extending into Q2, and customer factory builds, we are confident strength will continue into the first half of fiscal 2027.
Can you help us understand where you think next year's growth could potentially be? And especially one of the things people like to compare is where you could go in terms of how high the revenue could be next year versus the prior cycles, let's say, in 2021 and '22, where you did hit that $1.5 billion per year level?
Visibility is limited, but the first half of fiscal 2027 will be very strong. Reaching 2021-22 levels is a high bar given those were pandemic-driven extremes. We will provide more color on the second half in the November call.