ASE Technology Holding Co., Ltd.

Q2 2026 consolidated net revenue was TWD 191.1 billion, up 10% sequentially and 27% year over year. Fully diluted EPS was TWD 4.61 and basic EPS was TWD 4.80. Gross profit was TWD 40.2 billion with gross margin of 21.0%, up 1 percentage point sequentially and 4 percentage points year over year. Operating profit was TWD 21.1 billion, up 21% quarter over quarter and 107% year over year, with operating margin of 11.1%. Net income was TWD 21.1 billion, up 49% sequentially and 180% year over year. ATM Q2 revenue was a record TWD 126.1 billion, up 12% sequentially and 36% year over year. ATM gross margin was 27.3% and ATM operating margin was 15.7%. EMS Q2 revenue was TWD 65.8 billion, up 6% sequentially and 12% year over year, with gross margin of 8.9% and operating margin of 2.4%. For Q3 2026, management guided consolidated revenue to grow 21% to 22% quarter over quarter, consolidated gross margin to 12.5% to 21.5%, and consolidated operating margin to 11.5% to 12.5%. ATM Q3 revenue is expected to grow 11% to 13% quarter over quarter with gross margin of 28% to 29%. EMS Q3 revenue is expected to grow around 40% quarter over quarter with operating margin of 3.2% to 3.4%. Full-year 2026 LEAP services revenue is tracking ahead of prior USD 3.5 billion guidance, ATM revenue is expected to grow 35% year over year, and EMS full-year revenue growth was described as sub-20%. Management also said it is adding another USD 2 billion to CapEx, bringing total CapEx to about USD 10.5 billion, with USD 4 billion for factories and facilities and USD 6.5 billion for equipment.

Tien Wu framed the quarter around a multi-year AI infrastructure shift, arguing that hardware capacity, automation, and packaging complexity are becoming the key bottlenecks. He said ASE’s pure-play position, scale, and ecosystem relationships give it an advantage as packaging moves up the system-architecture value chain. His tone was confident and strategic, with repeated emphasis on first-mover advantage, trust, and long-term customer collaboration.

Joseph Tung highlighted the financial upside from higher loading and operating leverage, saying ATM gross margin beat expectations and the company is seeing structural efficiency gains plus a more favorable NT dollar environment. He cited cash, cash equivalents and current financial assets of TWD 107.4 billion, total interest-bearing debt of TWD 306.2 billion, EBITDA of TWD 45.8 billion, and net debt to equity of 47%. He also said CapEx is being raised by another USD 2 billion, that negative cash flow will remain for some time, and that the company can still fund growth through a healthy balance sheet and multiple cost-effective funding sources.

Analysts pressed on U.S. expansion, EMIB, the mix and timing of LEAP growth into 2027, and whether CapEx and free cash flow pressure would intensify. Management said U.S. work is already underway in California and that Taiwan remains the focus for manufacturing until scale and efficiency are right, while EMIB and other alternatives are not seen as a threat because ASE is a pure-play and can support whatever technology customers adopt. On LEAP, management said it has line of sight to double revenue in 2027, but deferred more detailed mix disclosure for a couple of quarters; on CapEx, it said heavy spending and negative cash flow will continue for some time.