ASE Technology (NYSE:ASX) Announces Quarterly Earnings Results

ASE Technology (NYSE:ASX) announced its quarterly earnings data on Thursday. The semiconductor company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.01, Zacks reports. The firm had revenue of $5.67 billion for the quarter, compared to analyst estimates of $5.47 billion. ASE Technology had a net margin of 5.61% and a return on equity of 10.67%.

Here are the key takeaways from ASE Technology’s conference call:

• ATM/LEAP led the recovery — ASE said ATM (assembly & test) drove results (ATM was 60% of 2025 revenue) and guided LEAP revenue to double to TWD 3.2 billion in 2026, with testing and bump/flip‑chip services growing fastest.
• Strong Q4 and full‑year results — Q4 consolidated revenue was NT$177.9 billion (+10% YoY) with gross margin 19.5% (up 3.1ppt YoY), and full‑year net income rose 25% to NT$40.7 billion, driven by higher ATM utilization and mix.
• Aggressive CapEx plan — 2025 machinery capex was TWD 3.4 billion (plus TWD 2.1 billion facilities); management plans about an additional US$1.5 billion in machinery for 2026 (≈ two‑thirds for leading‑edge services), signaling heavy near‑term investment but execution and returns remain to be seen.
• Taiwan cluster & Taiwan Plus One strategy — Management emphasized Taiwan manufacturing leadership, acquisition of existing clean‑room factories and expansion in Penang, Korea and the Philippines to capture wafers and packaging work both inside and outside Taiwan.
• EMS underperformance and transition risk — EMS revenue declined ~5% in 2025 with operating margins near 2.9%; company plans to refocus EMS toward AI‑adjacent system solutions, but near‑term EMS performance remains muted and a drag on consolidation.

ASE Technology Price Performance

Shares of ASX traded up $0.61 during trading hours on Friday, reaching $20.87. 12,819,540 shares of the company’s stock traded hands, compared to its average volume of 8,463,769. ASE Technology has a 12 month low of $6.94 and a 12 month high of $21.42. The company has a current ratio of 1.13, a quick ratio of 0.88 and a debt-to-equity ratio of 0.64. The stock has a market cap of $46.28 billion, a PE ratio of 41.73, a price-to-earnings-growth ratio of 0.76 and a beta of 1.48. The firm’s 50 day simple moving average is $17.20 and its 200-day simple moving average is $13.70.

Trending Headlines about ASE Technology

Here are the key news stories impacting ASE Technology this week:

• Positive Sentiment: Quarterly beat — ASE reported EPS of $0.21 vs. consensus $0.20 and revenue of $5.67B vs. $5.47B expected, with year-over-year and sequential revenue growth; investors reacted positively to the clear beat on both earnings and sales. Read More.
• Positive Sentiment: Stronger demand outlook — Management is targeting $3.2B of LEAP (advanced packaging/heterogeneous integration) revenue in 2026, driven by AI/accelerator demand and advanced packaging ramps, which supports higher long-term revenue and margin potential. Read More.
• Neutral Sentiment: Investor materials & guidance details available — The company posted its unaudited consolidated results and provided slide deck / call materials with segment and macro commentary; the slides/transcript will let investors dig into margin drivers, capacity plans and geographic mix. Read More.
• Neutral Sentiment: Conference call & presentation recap — The earnings presentation and transcript provide color on customer ramps, capacity expansion and near-term demand trends; useful for modeling 2026 LEAP revenue and capex needs. Read More.
• Negative Sentiment: Valuation and margin considerations — The stock trades at a rich multiple (PE ~41.8) and net margin remains modest (~5.6%), leaving limited downside protection if demand for packaging or AI-related ramps disappoint. Investors should weigh growth versus stretched valuation. Read More.

Wall Street Analysts Forecast Growth

ASX has been the topic of several research reports. Weiss Ratings restated a “hold (c)” rating on shares of ASE Technology in a report on Wednesday, January 21st. Nomura upgraded shares of ASE Technology from a “neutral” rating to a “buy” rating in a research report on Thursday, October 30th. Wall Street Zen downgraded ASE Technology from a “buy” rating to a “hold” rating in a research note on Sunday, January 4th. Finally, Zacks Research lowered shares of ASE Technology from a “hold” rating to a “strong sell” rating in a research report on Thursday, January 1st. One investment analyst has rated the stock with a Buy rating, one has assigned a Hold rating and one has given a Sell rating to the company. According to data from MarketBeat, the stock currently has a consensus rating of “Hold”.

Institutional Investors Weigh In On ASE Technology

Several hedge funds have recently bought and sold shares of the stock. HighTower Advisors LLC increased its holdings in shares of ASE Technology by 3.0% in the 4th quarter. HighTower Advisors LLC now owns 43,176 shares of the semiconductor company’s stock worth $695,000 after buying an additional 1,252 shares during the last quarter. Wilmington Savings Fund Society FSB grew its position in ASE Technology by 12.2% in the third quarter. Wilmington Savings Fund Society FSB now owns 8,454 shares of the semiconductor company’s stock worth $94,000 after acquiring an additional 917 shares in the last quarter. Coldstream Capital Management Inc. increased its stake in ASE Technology by 78.8% in the third quarter. Coldstream Capital Management Inc. now owns 85,855 shares of the semiconductor company’s stock valued at $952,000 after acquiring an additional 37,846 shares during the last quarter. United Capital Financial Advisors LLC increased its stake in ASE Technology by 12.4% in the third quarter. United Capital Financial Advisors LLC now owns 19,552 shares of the semiconductor company’s stock valued at $217,000 after acquiring an additional 2,158 shares during the last quarter. Finally, Verition Fund Management LLC raised its position in ASE Technology by 127.0% during the third quarter. Verition Fund Management LLC now owns 1,355,194 shares of the semiconductor company’s stock valued at $15,029,000 after purchasing an additional 758,276 shares in the last quarter. 6.80% of the stock is currently owned by institutional investors.

About ASE Technology

ASE Technology Holding Co, Ltd. (NYSE: ASX), commonly referred to as ASE, is a Taiwan-based provider of semiconductor assembly and testing services. The company focuses on back-end semiconductor manufacturing and related services that prepare integrated circuits and other semiconductor devices for final use. Its core activities include advanced IC packaging, final testing, wafer probing, and related engineering and supply-chain support for semiconductor customers.

ASE offers a range of products and technical capabilities designed to meet increasingly complex packaging and system-in-package requirements.