ASE Technology (NYSE:ASX) Releases Earnings Results, Beats Expectations By $0.01 EPS

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

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 Trading Up 2.9%

Shares of NYSE ASX traded up $0.59 during trading on Friday, hitting $20.85. 12,503,819 shares of the company traded hands, compared to its average volume of 8,453,236. The firm has a market capitalization of $46.26 billion, a P/E ratio of 41.74, a P/E/G ratio of 0.76 and a beta of 1.48. The company has a quick ratio of 0.88, a current ratio of 1.13 and a debt-to-equity ratio of 0.64. The company has a 50-day moving average price of $17.20 and a 200-day moving average price of $13.70. ASE Technology has a 1 year low of $6.94 and a 1 year high of $21.42.

Hedge Funds Weigh In On ASE Technology

A number of hedge funds have recently made changes to their positions in the business. Rafferty Asset Management LLC lifted its position in ASE Technology by 50.9% during the 2nd quarter. Rafferty Asset Management LLC now owns 7,392,190 shares of the semiconductor company’s stock worth $76,361,000 after acquiring an additional 2,491,918 shares in the last quarter. Millennium Management LLC raised its stake in ASE Technology by 130.8% during the third quarter. Millennium Management LLC now owns 3,169,267 shares of the semiconductor company’s stock valued at $35,147,000 after buying an additional 1,796,357 shares in the last quarter. Bank of America Corp DE lifted its holdings in ASE Technology by 18.8% during the 2nd quarter. Bank of America Corp DE now owns 8,815,184 shares of the semiconductor company’s stock worth $91,061,000 after buying an additional 1,397,206 shares during the last quarter. Connor Clark & Lunn Investment Management Ltd. increased its stake in ASE Technology by 387.9% during the third quarter. Connor Clark & Lunn Investment Management Ltd. now owns 1,017,333 shares of the semiconductor company’s stock valued at $11,282,000 after purchasing an additional 808,815 shares during the last quarter. Finally, Goldman Sachs Group Inc. grew its position in shares of ASE Technology by 15.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 5,775,272 shares of the semiconductor company’s stock valued at $50,591,000 after buying an additional 780,651 shares during the last quarter. Hedge funds and other institutional investors own 6.80% of the company’s stock.

ASE Technology News Summary

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

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.