Amkor’s fourth quarter results were met with a positive market reaction, as the company outpaced Wall Street’s expectations for both revenue and profit. Management attributed the outperformance to robust demand in advanced packaging and data center computing, as well as a surge in communications, particularly from iOS devices. CEO Kevin Engel, in his first call as chief executive, highlighted that "all end markets exceeded expectations, with the largest upside coming from communications, driven primarily by strong iOS demand." Operational improvements, notably in Vietnam’s facility and the ramp-up of advanced packaging programs, also contributed to margin expansion and strong execution in a dynamic industry environment.
Is now the time to buy AMKR? Find out in our full research report (it’s free for active Edge members).
Amkor (AMKR) Q4 CY2025 Highlights:
- Revenue: $1.89 billion vs analyst estimates of $1.83 billion (15.9% year-on-year growth, 3% beat)
- EPS (GAAP): $0.69 vs analyst estimates of $0.44 (56.8% beat)
- Adjusted EBITDA: $369 million vs analyst estimates of $317.2 million (19.5% margin, 16.3% beat)
- Revenue Guidance for Q1 CY2026 is $1.65 billion at the midpoint, above analyst estimates of $1.54 billion
- EPS (GAAP) guidance for Q1 CY2026 is $0.23 at the midpoint, missing analyst estimates by 1.5%
- Operating Margin: 9.8%, up from 8.3% in the same quarter last year
- Inventory Days Outstanding: 25, up from 21 in the previous quarter
- Market Capitalization: $11.74 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Our Top 5 Analyst Questions From Amkor’s Q4 Earnings Call
- Charles Shi (Needham and Company) asked about the higher-than-expected CapEx guidance and whether investment would be more front-loaded. CEO Kevin Engel clarified that facility construction is being accelerated, and customer commitments are supporting confidence in high utilization.
- Craig Ellis (B. Riley Securities) inquired about sources of funding for capital investments. CFO Megan Faust explained that government incentives, customer commitments, and access to diverse debt markets provide funding flexibility, with minimal immediate offsets in 2026 guidance.
- Randy Abrams (UBS) questioned the outlook for non-advanced packaging segments. Engel noted that flat unit growth in phones and PCs is offset by a shift to premium tiers, benefiting Amkor, while automotive and industrial are expected to see strong growth in advanced content.
- Ben Reitzes (Melius Research) sought more detail on communications segment exposure and the partnership with TSMC for the Arizona project. Engel explained that premium iOS demand and ongoing collaboration with TSMC and customers are driving positive momentum for U.S. manufacturing.
- Steven Fox (Fox Advisors) asked about balance sheet management and margin outlook as CapEx ramps. Faust stated that Amkor can operate with $500 million in cash and that interest expense may decrease as construction interest is capitalized; margin improvement is expected as advanced packaging ramps.
Catalysts in Upcoming Quarters
In the coming quarters, the StockStory team will be monitoring (1) the pace and efficiency of capacity expansion in Arizona and Korea, (2) successful ramp-up and monetization of new AI and automotive packaging programs, and (3) progress in securing additional customer commitments and government incentives for ongoing investments. Execution against these milestones, as well as management’s ability to navigate supply chain and policy risks, will be key to sustaining growth.
Amkor currently trades at $47.50, down from $52.52 just before the earnings. At this price, is it a buy or sell? Find out in our full research report (it’s free).
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