ASE Technology (ASX) Q1 2026 earnings summary

Executive summary

• Q1 2026 net revenues reached NT$173,662 million, up 17% year-over-year and down 2% sequentially, with net income at NT$14,148 million, an 87% increase year-over-year.

• Basic EPS was NT$3.24, diluted EPS NT$3.08, both up significantly from Q1 2025.

• Gross margin improved to 20.1% from 17% a year ago, and operating margin rose to 10.1% from 7% year-over-year.

• ATM and LEAP services drove growth, while EMS revenues declined sequentially as expected.

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

Financial highlights

• Consolidated net revenues were NT$173,662 million, gross profit NT$34,850 million, and EBITDA NT$38,165 million.

• Net income was NT$14,148 million, up 87% year-over-year.

• Gross margin was 20.1%, up 3.3 ppt year-over-year; operating margin 10.1%, up 3.6 ppt year-over-year.

• Cash and cash equivalents at quarter-end were NT$87,811 million.

• Net cash from operating activities was NT$36,387 million.

Outlook and guidance

• Q2 2026 consolidated revenues expected to grow 7%-9% quarter-over-quarter, with gross margin to increase by 20-100 bps and 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.