Record Quarterly Revenue
Reported record Q1 revenue of $1.68 billion, up 27% year‑on‑year, above the midpoint of guidance and driven by stronger‑than‑expected performance across most end markets.
April 27th, 2026
Summary
- Earnings Call Date:
- 2026-04-27
- Change Since:
- +9.56%
- Next Earnings Date:
- 2026-08-03
Earnings Call Sentiment
PositiveThe call presented a largely positive operational and financial picture: record Q1 revenue (up 27% YoY), strong end‑market growth (notably communications +42%), margin expansion, improved utilization and solid liquidity. Management reiterated confident near‑term guidance and outlined meaningful advanced packaging ramps and capacity expansion (Arizona, Korea) that support multiyear upside. Offsetting risks include supply‑chain delays and material price pressure (estimated near‑term pushouts of $50–$100M), significant capital intensity that will modestly dilute operating margins (1–2 ppt anticipated beginning in 2027), and timing/qualification uncertainty for new facilities and programs. Overall, the positive growth, margin improvement and balance sheet strength materially outweigh the identifiable near‑term operational and investment risks.
Company Guidance
Amkor guided Q2 revenue of $1.75–$1.85 billion (≈+7% sequential at the midpoint) with gross margin of 14.5%–15.5%, operating expenses of ~ $120 million (including a ~$20 million gain on real estate), net income of $105–$130 million and EPS of $0.42–$0.52; full‑year 2026 CapEx is estimated at $2.5–$3.0 billion (65%–70% for facilities expansion including Arizona Phase 1, 30%–35% for HDFO/test/advanced packaging, remainder for R&D/quality), and the company expects a full‑year effective tax rate of ~20%. For context, Q1 was a record quarter with revenue $1.68 billion (+27% YoY), gross margin 14.2% (gross profit $239 million, +52% YoY), operating expenses $139 million, operating income $100 million (6.0% margin, +360 bps YoY), EBITDA $285 million (16.9% margin), net income $83 million and EPS $0.33; balance sheet metrics include $1.8 billion cash, $2.9 billion total liquidity, $1.4 billion total debt and debt/EBITDA ~1.1x. Management also said Q2 end‑market trends: communications mid‑ to high‑single‑digit sequential growth, computing mid‑single‑digits, automotive/industrial mid‑single‑digits, consumer low‑teens, utilization was in the low‑70s in Q1 (still in the 70s in Q2), CapEx spend is weighted ~30% H1/70% H2, Arizona Phase 1 is planned for completion in 2027 (expected to dilute operating income margin by ~1–2% beginning in 2027 while improving in 2028) and could ultimately add roughly a $1 billion run‑rate (≈>10% of prior revenue) when at scale.
Strong End‑Market Growth
Communications revenue grew 42% YoY and was the largest contributor; Computing revenue increased 19% YoY (driven by AI data center applications); Automotive & Industrial rose 28% YoY; Consumer improved 4% YoY.
Improving Profitability and Margins
Gross margin was 14.2% (exceeding the high end of Q1 guidance) and gross profit was $239 million, up 52% YoY. Operating income was $100 million with operating margin of 6%, an improvement of 360 basis points YoY. EBITDA was $285 million (16.9% margin).
Earnings Per Share and Net Income
Net income was $83 million and diluted EPS was $0.33 in Q1, significantly higher than the prior year, reflecting volume growth and margin initiatives.
Healthy Balance Sheet and Liquidity
Cash and short‑term investments of $1.8 billion, total liquidity of $2.9 billion, total debt of $1.4 billion and debt/EBITDA of 1.1x, providing flexibility for planned investments.
Positive Near‑Term Outlook
Q2 revenue guidance of $1.75–$1.85 billion (midpoint ≈ 7% sequential increase), gross margin guidance of 14.5–15.5%, and EPS guidance of $0.42–$0.52; management reiterated full‑year confidence.
Advanced Packaging Momentum and Product Ramps
Company preparing for HDFO/flip‑chip/test ramps, expects newest data center CPU HDFO program to begin ramping this quarter with meaningful contribution in Q3 and continued ramp into 2027; management expects AI/advanced packaging to roughly triple (tripling target reiterated).
Utilization and Operational Leverage
Q1 utilization improved to the low‑70% range (vs ~50% in Q1 prior year); Q2 expected to remain in the 70s. Management highlighted operating leverage from higher volumes and cost‑management actions supporting margin expansion.
Capital Investment Plan with Phased Funding
2026 CapEx guidance of $2.5–$3.0 billion (65–70% for facilities expansion); Arizona Phase 1 construction progressing (foundation complete, steel to begin), with Phase 1 planned for completion in 2027 and an expected ~ $1 billion run‑rate (~10%+ of network) when scaled.
Operator
Good day, ladies and gentlemen, and welcome to the Amkor Technology First Quarter 2026 Earnings Call. My name is Diego, and I will be your conference facilitator today. [Operator Instructions] As a reminder, this conference is being recorded. I would now like to turn the call over to Jennifer Jue, Head of Investor Relations. Ms. Jue, please go ahead.
Jennifer Jue
Good afternoon, and welcome to Amkor's First Quarter 2026 Earnings Conference Call. Joining me today are CEO, Kevin Engel; and CFO, Megan Faust. Our earnings press release was filed with the SEC this afternoon and is available on the Investor Relations page of our website, along with the presentation slides that accompany today's call. During this presentation, we will use non-GAAP financial measures, and you can find the reconciliation to the comparable GAAP financial measures in the slides. We will make forward-looking statements today based on our current beliefs, assumptions and expectations. Please refer to our press release for a disclaimer on forward-looking statements and our SEC filings for a discussion on the risk factors and uncertainties that may affect our future results. I will now turn the call over to Kevin.
Kevin Engel
Thank you, Jennifer. Good afternoon, everyone. Thank you for joining us today. Amkor delivered a strong start to the year, achieving record first quarter revenue of $1.68 billion, up 27% year-on-year. We saw growth across all end markets, and we're encouraged by the breadth of demand we're seeing across our technology platforms. Communications delivered the strongest growth and mainstream posted its fourth c...
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