ASE Technology (ASX) Q3 2026 earnings summary

Executive summary

• Q3 revenue was NT$244,161m, up 44.8% YoY and 27.8% QoQ; parent-attributable net income reached NT$26,996m.

• Gross margin rose to 22.1% and operating margin to 13.6%; record results reflected stronger LEAP mix and high utilization.

• Capacity constraints are prompting higher investment, with continued LEAP-led growth and sequential margin improvement expected into 2027.

Financial highlights

• Q3 gross profit was NT$53,967m; operating income was NT$33,142m, up 151% YoY, and parent-attributable net income was NT$26,996m, up 148% YoY.

• Basic EPS was NT$6.13 and diluted EPS NT$5.84; YTD diluted EPS was NT$13.40 and basic EPS NT$14.17.

• Excluding PPA expenses, parent-attributable net income was NT$27,763m; basic EPS was NT$6.31 and diluted EPS NT$6.01.

• 9M revenue was NT$608,887m, operating income NT$71,765m and gross profit NT$128,932m.

Outlook and guidance

• Q4 consolidated revenue is expected to grow 6%-8% QoQ; gross margin is guided at 23%-24% and operating margin at 14.5%-15.5%, assuming USD/TWD 31.9.

• Q4 ATM revenue is expected to rise 11%-13% QoQ, with gross margin up 100-200 bps; EMS revenue is expected to be flattish QoQ and operating margin ~2%.

• 2026 LEAP revenue forecast was raised from $3.7B to over $4B; 2027 LEAP revenue is expected to double YoY.

• Full-process revenue is on track for $300M in 2026 and expected to exceed $1B in 2027; CPO revenue is projected above $0.5B in 2027.

• Sequential gross-margin improvement is expected through 2027, with ATM's prior structural gross-margin ceiling serving as a new base.