ASE Revenue Jumps 44.8% to NT$244,161 Million in Third Quarter
Key Facts
ASE Technology Holding reported consolidated revenue of NT$244,161 million in the third quarter of 2026, up 44.8% year over year and 27.8% from the previous quarter, according to results published via PR Newswire. Diluted earnings per share were NT$5.84, compared with NT$2.41 in the same period last year. Net income attributable to shareholders of the parent company also rose to NT$26,996 million, from NT$10,870 million a year earlier and NT$21,065 million in the second quarter. An Investing.com report attributed to Reuters said earnings per share exceeded the NT$5.18 estimate, while revenue topped expectations of NT$233.18 billion. Sales growth came with improving margins, as management said demand for assembly, testing and advanced packaging services exceeded available capacity in several areas.
Consolidated gross margin rose to 22.1% in the third quarter from 21.0% in the second quarter, while operating margin increased to 13.6% from 11.1%, according to the company’s statement. Improvement was greater in the assembly, testing and advanced packaging, or ATM, business, whose revenue reached NT$151,485 million, up 51.0% year over year and 20.1% quarter over quarter. The business’s gross margin widened to 30.6% from 27.3%, while its operating margin rose to 20.0% from 15.7%. By contrast, the electronics manufacturing services, or EMS, business recorded revenue of NT$93,469 million, up 35.4% year over year and 42.1% quarter over quarter. But EMS gross margin fell to 8.3% from 8.9% in the previous quarter, highlighting the difference in margin performance between the two businesses.
Ken Hsiang, head of investor relations, said revenue grew faster than the company’s initial expectations, “mainly driven by faster-than-expected ramp-up of high-demand LEAP capacity.” Management added that ATM capacity operated at full or near-full utilization during the quarter, and demand for services exceeded the company’s ability to supply them across many LEAP and non-LEAP capacities. The remarks indicate that the business expanded amid limits on the company’s available operating capacity, alongside sales growth. ASE raised its 2026 LEAP revenue forecast to more than US$4 billion, from a previous estimate of US$3.7 billion. Management said LEAP revenue in 2027 is expected to roughly double again.
The demand was reflected in the company’s announced investment plans: it raised its 2026 capital expenditure plan to US$11.5 billion from US$10.5 billion and said spending in 2027 would be higher. Capital expenditure on equipment totaled US$2,104 million in the third quarter, including US$991 million for packaging and US$1,067 million for testing. US$41 million went to EMS, and US$5 million to interconnect materials and other activities. The spending puts capacity expansion alongside revenue growth as a key focus of the company’s results and outlook. Its allocation also reflects a strong emphasis on packaging and testing, the two activities management cited when explaining demand and utilization levels.
Management expects company revenue to rise 6% to 8% in the fourth quarter of 2026 compared with the third quarter, with gross margin between 23% and 24% and operating margin between 14.5% and 15.5%, according to the report attributed to Reuters. For the ATM business, the company expects fourth-quarter revenue growth of 11% to 13% quarter over quarter, while EMS revenue is expected to remain roughly stable compared with the previous quarter. In the market reaction reported on October 29, 2026, the stock fell 1.73% to NT$683, compared with a previous close of NT$695. The price remained within a 52-week range of NT$206 to NT$765. Thus, higher growth and margin forecasts for the coming quarter coincided with a decline in the stock during the session covered by the report.