ASE Technology Holding Co., Ltd. (ASX): Financial results for Q2 2026
ASE Technology Holding Co., Ltd. (ASX) furnished an SEC Form 6-K — earnings release. SIGNATURES Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized. ASE TECHNOLOGY HOLDING CO., LTD. Date: July 30, 2026 By: /s/ Joseph Tung Name: Jose
How this was made
The 30-second read
Why it matters
The earnings release shows robust growth, suggesting short‑term buying interest but highlights cost pressures.
Market read
First‑report earnings for a mid‑cap tech supplier, likely to move the stock and sector.
What to watch
Absence of forward guidance and high raw material costs could limit future upside.
ASE Technology Holding Co., Ltd. reported unaudited consolidated net revenues of NT$191,064 million for 2Q26, up by 26.7% year-over-year and up by 10.0% sequentially, with net income attributable to shareholders of the parent of NT$21,068 million.
Consolidated revenue, operating income and net income increased year-over-year and sequentially, while consolidated gross margin and operating margin improved sequentially. ATM delivered stronger revenue growth and margin expansion, although EMS gross margin and operating margin declined sequentially.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| Total net revenuesother | NT$191,064 million | up by 10.0% | up by 26.7% |
| Cost of revenuesother | NT$150,914 million | – | – |
| Gross profitother | NT$40,150 million | – | – |
| Gross marginother | 21.0% | increased by 1 percentage point | – |
| Research and development expenseother | NT$10,229 million | – | – |
| Selling, general and administrative expenseother | NT$8,787 million | – | – |
| Total operating expensesother | NT$19,016 million | – | – |
| Operating incomeother | NT$21,134 million | – | – |
| Operating marginother | 11.1% | – | – |
| Interest expense - netother | NT$1,853 million | – | – |
| Foreign exchange gain - netother | NT$738 million | – | – |
| Gain on valuation of financial assets and liabilities - netother | NT$2,899 million | – | – |
| Gain on equity-method investments - netother | NT$2,298 million | – | – |
| Others - netother | NT$484 million | – | – |
| Total non-operating income and expensesother | NT$4,566 million | – | – |
| Income before taxother | NT$25,700 million | – | – |
| Income tax expenseother | NT$4,172 million | – | – |
| Income from operations and before non-controlling interestsother | NT$21,528 million | – | – |
| Non-controlling interestsother | NT$460 million | – | – |
| Net income attributable to shareholders of the parentother | NT$21,068 million | – | – |
| Earnings per share – Basicother | NT$4.80 | – | – |
| Earnings per share – Dilutedother | NT$4.61 | – | – |
| Earnings per equivalent ADS – Basicother | US$0.304 | – | – |
| Earnings per equivalent ADS – Dilutedother | US$0.292 | – | – |
| EBITDAother | NT$45,779 million | – | – |
| Net cash generated from operating activitiesother | NT$47,014 million | – | – |
| Net payments for property, plant and equipmentother | NT$79,849 million | – | – |
| Net cash used in investing activitiesother | NT$83,084 million | – | – |
| Net cash generated from financing activitiesother | NT$39,154 million | – | – |
| Cash and cash equivalents at the end of periodother | NT$91,292 million | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| PackagingRepresented approximately 52% of total net revenues for the quarter. | NT$99,387 million | – | – |
| TestingRepresented approximately 13% of total net revenues for the quarter. | NT$23,665 million | – | – |
| EMSRepresented approximately 34% of total net revenues for the quarter. | NT$65,411 million | – | – |
| OthersRepresented approximately 1% of total net revenues for the quarter. | NT$2,601 million | – | – |
| ATMGross margin increased by 1.3 percentage points to 27.3% in 2Q26 from 26.0% in 1Q26; computing represented 30% of ATM revenues, compared to 27% in 1Q26. | NT$126,148 million | up by 12.2% | up by 36.3% |
| EMS operationsGross margin decreased by 0.6 percentage points to 8.9% in 2Q26 from 9.5% in 1Q26; communication represented 30% of EMS revenues, compared to 25% in 1Q26. | NT$65,789 million | up by 6.3% | up by 11.9% |
What drove it
- ATM net revenues were NT$126,148 million, up by 36.3% year-over-year and up by 12.2% sequentially.
- ATM gross margin was 27.3% and ATM operating margin was 15.7% in 2Q26, compared to 26.0% and 14.1%, respectively, in 1Q26.
- Computing represented 30% of ATM revenues in 2Q26, compared to 27% in 1Q26.
- Net gain on foreign exchange hedging activities was NT$3,637 million.
- Net gain on equity-method investments was NT$2,298 million.
- Total non-operating income for the quarter was NT$4,566 million.
Concerns
- EMS gross margin decreased by 0.6 percentage points to 8.9% in 2Q26 from 9.5% in 1Q26.
- EMS operating margin was 2.4% in 2Q26, compared to 3.0% in 1Q26.
- Net debt to equity ratio was 0.47 as of June 30, 2026, compared to 0.40 as of March 31, 2026.
- The five largest ATM customers together accounted for approximately 44% of total net revenues in 2Q26, and one customer accounted for more than 10% of total net revenues.
What to watch
- ATM gross margin and operating margin after reaching 27.3% and 15.7%, respectively, in 2Q26.
- EMS profitability after gross margin declined to 8.9% and operating margin declined to 2.4% in 2Q26.
- Equipment capital expenditures, which totaled US$1,695 million in 2Q26.
- Cash flow and borrowing activity, including NT$79,849 million of net payments for property, plant and equipment and NT$39,864 million of total net proceeds from borrowings and bonds in 2Q26.
- Customer concentration, including the top 10 ATM customers contributing 60% of total net revenues in 2Q26.
Balance sheet and cash flow
- Cash and cash equivalents were NT$91,292 million as of June 30, 2026, compared to NT$87,811 million as of March 31, 2026.
- Total assets were NT$1,071,334 million as of June 30, 2026, compared to NT$957,777 million as of March 31, 2026.
- Short-term borrowings were NT$60,063 million as of June 30, 2026, compared to NT$49,724 million as of March 31, 2026.
- Bonds payable were NT$14,985 million as of June 30, 2026, compared to NT$1,999 million as of March 31, 2026.
- Long-term borrowings were NT$209,603 million as of June 30, 2026, compared to NT$199,142 million as of March 31, 2026.
- Current ratio was 1.07 and net debt to equity ratio was 0.47 as of June 30, 2026.
- Total unused credit lines amounted to NT$396,197 million as of June 30, 2026.
- Equipment capital expenditures in 2Q26 totaled US$1,695 million, including US$840 million in packaging operations and US$804 million in testing operations.
- Net cash generated from operating activities was NT$47,014 million; net cash used in investing activities was NT$83,084 million; and net cash generated from financing activities was NT$39,154 million.
Analysis
ASE Technology reported an unaudited Taiwan-IFRS second quarter with broad sequential and year-over-year growth. Consolidated net revenues were NT$191,064 million, up by 26.7% year-over-year and up by 10.0% sequentially. Gross profit was NT$40,150 million and operating income was NT$21,134 million, while gross margin increased by 1 percentage point to 21.0% and operating margin reached 11.1%, compared to 10.1% in 1Q26.
ATM was the principal growth and profitability contributor. ATM net revenues were NT$126,148 million, up by 36.3% year-over-year and up by 12.2% sequentially. Its gross margin increased by 1.3 percentage points to 27.3% and its operating margin was 15.7%, compared to 14.1% in 1Q26. Within ATM revenue mix, computing represented 30%, compared to 27% in 1Q26, while communication represented 41%, compared to 43% in 1Q26.
EMS net revenues were NT$65,789 million, up by 11.9% year-over-year and up by 6.3% sequentially, but profitability moved lower. EMS gross margin decreased by 0.6 percentage points to 8.9% from 9.5%, and operating margin was 2.4% compared to 3.0% in 1Q26. The contrast between ATM margin expansion and EMS margin contraction is the key mix and execution feature of the period.
Net income attributable to shareholders of the parent was NT$21,068 million, compared to NT$7,521 million in 2Q25 and NT$14,132 million in 1Q26. Non-operating income and expenses totaled NT$4,566 million, including NT$2,899 million of gain on valuation of financial assets and liabilities - net and NT$2,298 million of gain on equity-method investments - net. Basic earnings per share were NT$4.80 and diluted earnings per share were NT$4.61.
Investment outlays were substantial. Equipment capital expenditures totaled US$1,695 million, with US$840 million used in packaging operations and US$804 million in testing operations. Net cash generated from operating activities was NT$47,014 million, while net payments for property, plant and equipment were NT$79,849 million and total net proceeds from borrowings and bonds were NT$39,864 million. Cash and cash equivalents ended at NT$91,292 million, and net debt to equity ratio was 0.47. The release did not provide forward guidance.
Not in the filing
stated, not guessed- Forward revenue guidance
- Forward gross-margin guidance
- Forward operating-expense guidance
- Forward tax-rate guidance
- Other forward guidance
- Prior-period outlook for comparison
- Share repurchases
- Dividends
- Free cash flow
- Explicit total debt line item
- Named executive earnings commentary or executive quotes
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
ASE Technology Holding (NYSE: ASX) is a leading provider of semiconductor assembly, testing, and EMS services.
Ticker impact
ASE Technology Holding reported Q2 2026 unaudited results with 26.7% YoY revenue growth and EPS of $0.304 per ADS.
Potential price rise of 3‑5% in intraday trading.
Revenue and profit surged YoY, margins improved, and guidance was not provided, leaving upside room.
Market effects
Boosts semiconductor assembly & testing sector sentiment.
Positive for Taiwan‑listed tech firms.
May influence broader tech hardware supply‑chain outlook.
Counterpoint
If the earnings beat is already priced in, the stock could face a pull‑back.
Key entities
- CompanyASE Technology Holding Co., Ltd.
Semiconductor assembly and testing services provider.
