ASE Technology (NYSE:ASX) Announces Quarterly Earnings Results, Beats Estimates By $0.01 EPS

ASE Technology (NYSE:ASX) announced its quarterly earnings data on Thursday, February 5th. The semiconductor company reported $0.21 earnings per share for the quarter, beating the consensus estimate of $0.20 by $0.01, Zacks reports. ASE Technology had a return on equity of 12.00% and a net margin of 6.31%.The business had revenue of $5.22 billion during the quarter, compared to analyst estimates of $5.47 billion.

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 Stock Up 3.7%

ASX opened at $21.67 on Wednesday. The company has a 50 day moving average of $21.77 and a 200 day moving average of $17.03. The company has a market cap of $48.06 billion, a PE ratio of 37.36, a price-to-earnings-growth ratio of 0.87 and a beta of 1.41. ASE Technology has a 12 month low of $6.94 and a 12 month high of $25.28. The company has a current ratio of 1.28, a quick ratio of 1.00 and a debt-to-equity ratio of 0.57.

Wall Street Analyst Weigh In

ASX has been the topic of several research reports. Wall Street Zen lowered ASE Technology from a “buy” rating to a “hold” rating in a research note on Saturday. Zacks Research downgraded ASE Technology from a “hold” rating to a “strong sell” rating in a research note on Thursday, January 1st. Finally, Weiss Ratings reissued a “hold (c)” rating on shares of ASE Technology in a report on Wednesday, January 21st. One analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the stock. Based on data from MarketBeat, the company currently has a consensus rating of “Hold”.

Institutional Investors Weigh In On ASE Technology

A number of hedge funds and other institutional investors have recently bought and sold shares of ASX. Compound Planning Inc. boosted its holdings in shares of ASE Technology by 15.1% in the fourth quarter. Compound Planning Inc. now owns 42,975 shares of the semiconductor company’s stock worth $692,000 after acquiring an additional 5,648 shares during the period. EP Wealth Advisors LLC bought a new stake in shares of ASE Technology during the 4th quarter valued at $230,000. Mackenzie Financial Corp raised its stake in shares of ASE Technology by 120.2% during the 4th quarter. Mackenzie Financial Corp now owns 502,165 shares of the semiconductor company’s stock valued at $8,034,000 after purchasing an additional 274,085 shares during the period. Voloridge Investment Management LLC lifted its holdings in ASE Technology by 410.4% during the 4th quarter. Voloridge Investment Management LLC now owns 694,560 shares of the semiconductor company’s stock worth $11,182,000 after purchasing an additional 558,476 shares in the last quarter. Finally, OLD Mission Capital LLC purchased a new stake in ASE Technology during the 4th quarter worth about $935,000. Institutional investors own 6.80% of the company’s stock.

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.