Amkor Technology, Inc. (AMKR) Income Statement

The swing from negative to mid-20s sequential-year growth marks a genuine cyclical turn rather than a favorable comparison effect, since the 2025 base quarters were themselves depressed (2025Q1 revenue of $1.3B). Growth appears volume-led given that gross margin expanded alongside revenue, which would argue against pass-through price inflation distorting the top line. Investors should note that 2026Q3 growth cooled to 0.2%, which may indicate the recovery is seasonal rather than uniformly compounding, and warrants monitoring against the raised $1.95B–$2.05B quarterly guidance range.

Because Amkor's cost base is dominated by fixed depreciation of assembly and test equipment, the margin trajectory is largely a utilization story; the progression from 11.9% to 18.3% suggests the company crossed the volume threshold where fixed costs are being spread more efficiently. The fact that gross margin now sits above ASE's is notable for a smaller-scale OSAT and may indicate a favorable mix shift toward higher-complexity SiP and automotive work. The durability of this level should be tested against a downturn, since the same fixed-cost structure implies asymmetric downside if consumer-driven volumes soften.

Operating margin climbed from 2.4% to 11.3% over the same span, expanding faster than gross margin in percentage-point terms, which implies SG&A and R&D were effectively held flat in absolute dollars while revenue scaled—R&D hovered near $40M per quarter throughout. That operating discipline amplifies earnings in upcycles but also signals that the leverage is reversible: the 2025Q1 trough showed how quickly operating income collapses when utilization falls. The 2026Q3 SG&A step-up to $99.0M from $78.9M bears watching, as a persistent rise in overhead would mute the operating leverage thesis.

2025Q1 was the nadir across every line—$31.5M operating income, $21.1M net income, and 1.6% net margin—so the subsequent quarters represent a recovery rather than a new structural plateau, and the acceleration into 14-18% gross margins suggests the mix shift toward advanced packaging gained traction during the rebound. The lasting impact appears to be a higher earnings baseline: net margin has held in the 9% range through 2026Q2–Q3 versus 3.6-6.4% in the prior year, which, if sustained, would reset normalized earnings expectations. Still, the sharp 2025Q1 drawdown should temper assumptions that the new margin floor is recession-proof.