Amkor Technology 2025 Q2 Earnings Beats Expectations as Net Income Drops 18.1%

Amkor Technology (AMKR) reported its fiscal 2025 Q2 earnings on Jul 29th, 2025. Amkor Technology exceeded expectations, reporting earnings of $0.22 per share versus the consensus of $0.16. The company also provided an optimistic Q3 guidance, projecting net sales between $1.875 billion to $1.975 billion, which surpasses the consensus revenue estimate. This positive guidance reflects anticipated growth across key strategic areas such as artificial intelligence and high-performance computing, supporting their robust market positioning despite industry volatility.

Revenue

Amkor Technology's total revenue rose by 3.4% to $1.51 billion in 2025 Q2 from $1.46 billion in 2024 Q2. Advanced products generated $1.23 billion, showcasing strong performance in high-value segments. Mainstream products contributed $282.71 million, maintaining steady growth. This diverse revenue stream reflects the company's strategic focus and adaptability in the semiconductor landscape.

Earnings/Net Income

Amkor Technology experienced an 18.5% decline in earnings per share to $0.22 in 2025 Q2 from $0.27 in 2024 Q2. The company's net income decreased by 18.1% to $55.05 million from $67.26 million reported in 2024 Q2. The EPS reflects challenging market conditions and cost pressures.

Price Action

The stock price of Amkor Technology edged up 2.28% during the latest trading day, surged 16.60% during the most recent full trading week, and has surged 18.41% month-to-date.

Post-Earnings Price Action Review

The strategy of acquiring Amkor Technology shares after a revenue increase quarter-over-quarter on the financial report release date and holding for 30 days yielded moderate returns but underperformed the benchmark. This approach achieved a compound annual growth rate of 10.03%, falling short of the benchmark by 26.50%. Despite a maximum drawdown of 0.00% and a Sharpe ratio of 0.21, indicating low risk and modest returns, the strategy's overall effectiveness remained limited compared to broader market indicators. The approach highlighted potential in low-risk investments but lacked significant returns, necessitating reevaluation for future fiscal periods.

CEO Commentary

“We delivered second quarter revenue of $1.51 billion, up 14% sequentially and above the high end of guidance, with double-digit growth across all end markets,” said Giel Rutten, President and Chief Executive Officer of Amkor Technology. Rutten emphasized the company's strengthening strategic presence in artificial intelligence (AI), high-performance computing (HPC), and other transformative technologies. He highlighted the importance of strong customer relationships and a broad geographic footprint in positioning Amkor as an ideal partner for next-generation solutions, reflecting an optimistic outlook for ongoing growth and collaboration within the industry.

Guidance

Amkor expects third quarter 2025 net sales in the range of $1.875 billion to $1.975 billion, with a gross margin projected between 13.0% and 14.5%. The company anticipates net income of $85 million to $120 million, translating to earnings per diluted share of $0.34 to $0.48. For the full year 2025, capital expenditures are estimated at approximately $850 million.

Additional News

Amkor Technology recently announced plans to expand its strategic footprint with new investments in Vietnam and Arizona, targeting enhanced production capabilities and technological advancement. These initiatives aim to bolster long-term growth and improve margins, despite immediate challenges like foreign exchange costs. The company also declared a quarterly dividend of $0.0827 per share, reflecting a commitment to shareholder returns. Furthermore, several analysts have revised their price targets for Amkor Technology following the strong earnings report, highlighting increased confidence in the company's growth trajectory and strategic positioning within the semiconductor sector.