Amkor Technology, Inc. (AMKR) reported third-quarter revenue of $1.99 billion, with expanding margins supporting higher earnings across the company's semiconductor packaging and testing operations. Gross margin rose to 18.3% and net income climbed to $191 million, or $0.76 per diluted share. The report came alongside a fourth-quarter outlook that calls for up to $2 billion in sales and continued margin strength heading into the end of 2026.

Amkor is one of the largest independent providers of outsourced semiconductor assembly and test (OSAT) services: the packaging and test stage that turns finished silicon wafers into shippable chips. Because that work sits at the tail end of the chip supply chain, the company's results give a window into demand across the computing, communications, and automotive end markets its segments serve.

In trading, AMKR shares fell 6.34% to $36.81 during the regular session before rebounding 3.23% to $38.00 in after-hours trading. Record revenue from the computing and automotive businesses underpinned the quarterly results, even as the communications segment experienced weaker demand. The report highlighted the contrast between strong computing demand and softer communications sales, with profitability gains outpacing revenue growth.

Higher Revenue and Operating Margins

Amkor generated $1.991 billion in net sales during the quarter, up from $1.898 billion in the second quarter and above the $1.987 billion recorded in the corresponding quarter of 2025. While the year-over-year increase in revenue was modest, operating profitability improved at a considerably stronger pace.

Gross profit reached $364 million, and gross margin improved to 18.3% from 16.8% in the previous quarter. The company reported a gross margin of 14.3% one year earlier, marking an improvement of roughly four percentage points. The expansion reflected stronger profitability despite relatively flat annual revenue.

Operating income climbed to $225 million, compared with $200 million in the preceding quarter and $159 million in the year-ago period. Operating margin increased to 11.3%, up from 10.5% sequentially and 8.0% a year earlier. The results reflected improved earnings across Amkor's semiconductor packaging and testing operations.

The margin trajectory matters beyond the quarter itself: packaging and test is a capital-intensive line of work, and wider margins expand the internal funding available for the roughly $2.5 billion in full-year capital expenditures the company now projects.

Net Income Climbs as Computing Demand Strengthens

Net income attributable to Amkor reached $191 million, up from $174 million in the previous quarter. The company earned $127 million in the third quarter of 2025. Diluted earnings increased to $0.76 per share, from $0.70 sequentially and $0.51 a year earlier.

EBITDA climbed to $435 million, exceeding both the $400 million reported in the second quarter and the $340 million recorded during the corresponding period last year.

Amkor attributed its performance to stronger customer programs, improved margins, and expanding business commitments. Computing and Automotive & Industrial operations delivered record revenue during the reporting period, while the Communications segment experienced expected weakness that limited overall sales growth. Stronger customer commitments also improved demand visibility and supported the company's investment planning. That segment mix shaped the quarter: record contributions from computing and Automotive & Industrial offset the communications slowdown, keeping sales nearly flat while improved margins drove the earnings growth.

Fourth-Quarter Outlook and Capital Spending Plans

Amkor expects fourth-quarter revenue between $1.9 billion and $2.0 billion and projects gross margins of 18.0% to 19.0% for the period, indicating continued margin strength into the final quarter of 2026.

Management forecasts fourth-quarter net income between $160 million and $185 million, a range that translates into diluted earnings of $0.65 to $0.75 per share. The company also updated its full-year capital expenditure forecast to approximately $2.5 billion.

At the end of September, Amkor held $2.4 billion in cash and short-term investments against $2.5 billion in debt. The company repurchased approximately $32 million in shares during the third quarter and paid a quarterly dividend of $0.08352 per share on September 22, with future payments requiring board approval.

The guidance sets a clear scorecard for the next report: whether fourth-quarter revenue lands in the guided $1.9 billion to $2.0 billion range, whether gross margin holds within the projected 18.0% to 19.0% band, and how spending progresses against the $2.5 billion capital plan. With future dividends subject to board approval and buybacks discretionary, capital returns are another item to watch as the investment program advances.