ASE Technology (ASX) investor relations material

Executive summary

• Q1 2026 net revenues reached NT$173,662 million, up 17.2% year-over-year and down 2.4% sequentially, reflecting resilient business performance with ATM revenues growing sequentially despite seasonality and EMS revenues declining as expected.

• Net income attributable to shareholders was NT$14,148 million, up 87% year-over-year and down 4% sequentially.

• Basic EPS was NT$3.24, up 85% year-over-year and down 4% sequentially.

• Product mix is shifting, with AI-related products muting traditional seasonality and driving higher utilization rates.

• LEAP services and traditional advanced packaging showed continued strength, while wire bond demand picked up.

Financial highlights

• Gross profit for Q1 2026 was NT$34,850 million, gross margin 20.1%, up 0.6 ppt sequentially and 3.3 ppt year-over-year.

• Operating income was NT$17,532 million, down 1% sequentially but up 81% year-over-year.

• EBITDA for the quarter was NT$38,165 million.

• Operating margin was 10.1%, up 0.2 ppt sequentially and 3.6 ppt year-over-year.

• Net cash generated from operating activities was NT$36,387 million in Q1 2026.

Outlook and guidance

• Q2 2026 consolidated revenues expected to grow 7%-9% quarter-over-quarter; gross margin to increase by 20-100 bps; operating margin by 50-120 bps.

• ATM Q2 revenue projected to grow 9%-11% quarter-over-quarter, gross margin 26%-27%.

• EMS Q2 revenue to grow at least 10% year-over-year, with operating margin similar to Q2 2025.

• LEAP services revenue for 2026 expected to be 10% above prior guidance, exceeding $3.5 billion.

• Forward-looking statements highlight risks from semiconductor cyclicality, regulatory changes, and geopolitical tensions.