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

ASE Technology (NYSE:ASX) released its earnings results on Thursday. The semiconductor company reported $0.21 EPS for the quarter, beating the consensus estimate 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 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 Stock Up 3.9%

ASX stock traded up $0.80 during trading on Friday, hitting $21.06. 10,897,387 shares of the stock traded hands, compared to its average volume of 8,383,657. The stock has a market cap of $46.70 billion, a price-to-earnings ratio of 42.09, a price-to-earnings-growth ratio of 0.76 and a beta of 1.48. The company has a debt-to-equity ratio of 0.64, a current ratio of 1.13 and a quick ratio of 0.88. The firm’s 50 day moving average is $17.20 and its two-hundred day moving average is $13.70. ASE Technology has a 1 year low of $6.94 and a 1 year high of $21.42.

Trending Headlines about ASE Technology

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

• Positive Sentiment: Q4 results beat expectations — ASE reported $0.21 EPS vs. $0.20 consensus and revenue of $5.67B vs. $5.47B expected; net margin was 5.61% and ROE 10.67%. The beats and solid margins were the immediate catalyst for the rally. Earnings Summary
• Positive Sentiment: Management disclosed a growth opportunity tied to advanced packaging for AI: ASE is targeting roughly $3.2B of LEAP revenue in 2026, calling out AI demand and advanced packaging as key drivers — a constructive signal for future top-line growth and investor expectations. Growth Target Article
• Neutral Sentiment: Company filings and investor materials: ASE posted its unaudited Q4 results and slide deck showing 4Q net revenues of NT$177,915M (up 9.6% YoY, 5.5% sequentially); the full earnings presentation and transcript are available for deeper review. These provide detail but no new surprise beyond the headline beat. Press Release Presentation
• Negative Sentiment: Valuation and execution risk: the stock is trading at an elevated P/E (~41.8) after the move, which may limit upside unless growth from AI packaging materializes and margins improve; investors should watch margin trends, capex plans, and any conservative commentary on demand.

Wall Street Analyst Weigh In

Several research firms have recently commented on ASX. Weiss Ratings reiterated a “hold (c)” rating on shares of ASE Technology in a report on Wednesday, January 21st. Wall Street Zen cut ASE Technology from a “buy” rating to a “hold” rating in a research report on Sunday, January 4th. Zacks Research lowered ASE Technology from a “hold” rating to a “strong sell” rating in a research report on Thursday, January 1st. Finally, Nomura upgraded ASE Technology from a “neutral” rating to a “buy” rating in a research report on Thursday, October 30th. One investment analyst has rated the stock with a Buy rating, one has issued a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, ASE Technology presently has an average rating of “Hold”.

Institutional Trading of ASE Technology

A number of institutional investors and hedge funds have recently modified their holdings of the business. HighTower Advisors LLC lifted its holdings in shares of ASE Technology by 3.0% during the fourth quarter. HighTower Advisors LLC now owns 43,176 shares of the semiconductor company’s stock valued at $695,000 after purchasing an additional 1,252 shares in the last quarter. Wilmington Savings Fund Society FSB raised its position in ASE Technology by 12.2% in the 3rd quarter. Wilmington Savings Fund Society FSB now owns 8,454 shares of the semiconductor company’s stock worth $94,000 after buying an additional 917 shares during the last quarter. Coldstream Capital Management Inc. lifted its stake in ASE Technology by 78.8% during the 3rd 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 period. United Capital Financial Advisors LLC boosted its holdings in shares of ASE Technology by 12.4% during the 3rd 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 boosted its holdings in shares of ASE Technology by 127.0% during the 3rd quarter. Verition Fund Management LLC now owns 1,355,194 shares of the semiconductor company’s stock valued at $15,029,000 after acquiring an additional 758,276 shares during the last quarter. 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.