AMKOR TECHNOLOGY (AMKR)·Q4 2025 Earnings Summary

Amkor Delivers 57% EPS Beat as New CEO Unveils $3B CapEx Plan

February 9, 2026 · by Fintool AI Agent

Amkor Technology (NASDAQ: AMKR) crushed Q4 2025 expectations in new CEO Kevin Engel's first earnings call, delivering EPS of $0.69 versus the $0.44 consensus estimate — a 57% beat — while revenue of $1.89B topped estimates by 2.6%. Engel, a two-decade Amkor veteran who succeeds Giel, announced 2026 CapEx guidance of $2.5B-$3.0B (nearly 3x the 2025 level) as the company ramps HDFO advanced packaging capacity for AI data centers. Gross margins expanded to 16.7%, the highest level in eight quarters, as the company benefited from the iOS SiP socket recovery and improved product mix. The stock surged 9% following the results.

Did Amkor Beat Earnings?

Revenue: $1,888M vs $1,840M consensus — +2.6% beat

EPS: $0.69 vs $0.44 consensus — +56.8% beat

The outperformance was driven by three factors: (1) successful iOS SiP socket recovery that drove communications revenue higher, (2) continued AI GPU demand supporting the computing segment, and (3) operating leverage from higher utilization.

What Did Management Guide?

Q1 2026 guidance came in above consensus on revenue:

*Values retrieved from S&P Global.

The guidance implies seasonal Q1 softness (revenue down ~13% QoQ) but meaningfully above where the Street was positioned. The significant increase in 2026 CapEx ($2.5B-$3.0B vs $905M in 2025) signals management confidence in advanced packaging demand, particularly for AI applications.

2026 CapEx Breakdown:

• 65-70% for facility expansion, including Arizona phase one (~$3.5B total investment, construction to be completed mid-2027)
• 30-35% for HDFO, test, and 300mm capacity expansion in Korea and Taiwan — representing a ~40% YoY increase in equipment spend
• Remainder for R&D and quality programs

Full Year 2026 Outlook:

• Computing: Expected to grow over 20%, with 2.5D and HDFO platforms expected to nearly triple
• Advanced Automotive: Continued strong growth driven by ADAS applications
• Remaining segments: Single-digit growth expected

How Did the Stock React?

AMKR shares rallied +9.0% to $52.52 on the day, with after-hours trading pushing to $53.78. The stock is now trading near its 52-week high of $55.17.

The strong reaction reflects:

• Fifth consecutive quarterly beat streak
• Guidance above expectations
• Margin trajectory surprising to the upside
• Renewed confidence in iOS content recovery

What Changed From Last Quarter?

Margins inflected higher: Gross margin jumped from 14.3% in Q3 to 16.7% in Q4, driven by favorable product mix (lower proportion of lower-margin advanced SiP) and better factory utilization. Operating margin expanded to 9.8%, the highest since Q4 2023.

iOS socket recovered: The company successfully recovered the SiP socket in next-generation iOS phones as expected, driving the second-half communications revenue acceleration. This content recovery was a key focus area heading into 2025 after the temporary socket gap in 2024.

Balance sheet remains strong:

Full Year 2025 Performance

Amkor delivered solid full-year results despite a challenging first half:

Segment Performance

Q4 2025 revenue by end market with YoY growth:

Advanced Products: Record revenue, growing 7% YoY driven by computing, automotive, and consumer

Mainstream Products: Automotive mainstream continuing gradual recovery — third consecutive quarter of sequential growth

What Did Management Say About HDFO?

The Q&A session revealed significant detail about Amkor's advanced packaging pipeline:

Four HDFO Programs in Motion:

• 2 PC devices — previously discussed, ramping earlier in 2026; one already in production
• 2 data center CPU devices — in final qualification, ramping in H2 2026; Korea team preparing for high-volume launch

"When we look at the 2.5D and HDFO platforms, we're expecting that to nearly triple over the course of this year... One of those [data center devices] to be in very high volume. It'll be a pretty steep ramp." — CEO Kevin Engel

Customer Commitments for Capacity: Management disclosed that one of the HDFO CPU devices includes customer commitments to support capacity investment — including prepayment agreements and loading agreements.

"That just highlights the strong demand that we're seeing in this advanced packaging area." — CEO Kevin Engel

Q&A Highlights

On Vietnam reaching breakeven:

"We made solid progress in Vietnam, reaching break-even in Q4... The ongoing ramp in Vietnam, including the migration of SIP products from Korea, is expected to free up manufacturing space in Korea for HDFO and test growth." — CEO Kevin Engel

On Korea capacity expansion:

"By the time we exit 2026, we'll basically be increasing our Korea space around 20% since the beginning of 2025." — CEO Kevin Engel

On Arizona and TSMC partnership:

"The discussion continues. We have a very strong ongoing relationship on technology as well as what type of manufacturing is going to be needed in the U.S." — CEO Kevin Engel

On balance sheet capacity: CFO Megan Faust noted the company can operate comfortably with $500M on the balance sheet and expects interest expense to decrease (even if debt rises) due to capitalizing interest for construction.

Beat/Miss History

Amkor has delivered consistent beats over the past year:

*Values retrieved from S&P Global.

The company has beaten EPS estimates in 7 of the past 8 quarters, demonstrating consistent execution.

Forward Catalysts

1. H2 2026 HDFO Ramp: Two data center CPU programs ramping into high volume in second half — management expects 2.5D/HDFO platforms to nearly triple YoY

2. Arizona Facility: Construction underway; building to be completed mid-2027; potential for upwards of $2.85B in government incentives over time

3. Korea Expansion: Space increasing ~20% from start of 2025 through exit of 2026; new building coming online as they exit 2026

4. TSMC Partnership: Ongoing discussions on U.S. manufacturing collaboration; interest level from customers continuing to increase

5. May 2026 Investor Day: Management will share more details on strategy and margin improvement initiatives

Key Risks

• Execution risk on massive CapEx: $2.5-3B CapEx in 2026 (nearly 3x 2025) with government incentives on a lag — management acknowledged "Arizona investment most likely could peak in 2026" before benefits flow through
• Export controls and trade policy: Management noted they are monitoring dynamics around substrates, advanced silicon, and memory supply — considered in Q1 guidance
• Q1 margin compression: Gross margin guidance of 12.5%-13.5% implies ~380 bps sequential decline; Q4 included ~$30M asset sale benefit
• Labor constraints: R&D constraints limiting NPI capacity, forcing prioritization of larger opportunities
• Customer concentration: Top 10 customers represent 72% of revenue

Bottom Line

New CEO Kevin Engel's first quarter at the helm was a strong one — Amkor delivered a 57% EPS beat, margins at 8-quarter highs, and unveiled an ambitious $2.5-3B CapEx plan that signals confidence in the AI advanced packaging opportunity. The disclosure of four HDFO programs (two for data centers ramping H2 2026) and customer capacity commitments provide visibility into the computing growth trajectory. Vietnam reaching breakeven and Korea space expanding 20% demonstrate operational execution. With 2.5D/HDFO platforms expected to nearly triple in 2026 and Q1 guidance above consensus, Amkor enters its next chapter of growth with momentum.

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Related: AMKR Company Profile | Q4 2025 Transcript | Prior Earnings (Q3 2025)