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The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $7.39 billion, indicating a year-over-year increase of 31.2%.
The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, unchanged over the past 30 days. The projection indicates a 112.5% increase from the figure reported in the year-ago quarter.
Image Source: Zacks Investment Research
Let us see how things have shaped up prior to the announcement.
Earnings Whispers for ASX
Our proven model does not conclusively predict an earnings beat for ASX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
ASE Technology’s third-quarter 2026 performance is expected to have benefited from strong demand across its LEAP advanced packaging services and traditional Assembly, Test and Material (ATM) business. Management projects consolidated revenues to increase 21% to 22% on a sequential basis in the third quarter of 2026. Strong demand from customers for additional capacity in the third and fourth quarters, supported by AI-related semiconductor demand, is expected to have driven growth across both advanced packaging and mainstream services.
The company is expected to have benefited from continued growth in its LEAP and mainstream semiconductor packaging businesses in the third quarter of 2026. Rising demand for AI data centers is increasing the need for advanced packaging, testing and greater chip integration. Demand for industrial power, connectivity and storage devices is also supporting the traditional ATM business. Management expects ATM revenues to grow 11% to 13% sequentially in the third quarter of 2026. Strong demand across assembly and testing services is likely to have supported this performance, while the increasing contribution from LEAP is expected to have remained a key growth driver in the third quarter of 2026.
ASX’s third-quarter performance is expected to have witnessed an improvement in ATM profitability. Management projects ATM gross margin of 28% to 29% in the third quarter of 2026 compared with 27.3% in the second quarter. Higher utilization, a favorable revenue mix, increasing contributions from margin-accretive LEAP and testing services, and improvements in factory automation and efficiency are expected to have supported margins. Management also noted that the pricing environment remains favorable and that the company has been able to pass higher material and component costs on to customers through pricing arrangements.
ASX’s Electronics Manufacturing Services (EMS) business is expected to have reported strong sequential revenue growth in the third quarter of 2026. Management projects EMS revenues to increase approximately 40% quarter over quarter, partly due to higher component prices, particularly in memory. Demand for AI accelerator products is supporting the computing category, while the company is also pursuing opportunities to combine EMS capabilities with ATM technologies in areas such as optical interconnects, power delivery and thermal management. These factors are likely to have aided in the top-line performance in the to-be-reported quarter.
ASX Price Performance & Stock Valuation
ASE Technology shares have rallied 140.3% year to date (YTD), outperforming the Zacks Electronics - Semiconductors industry's appreciation of 9.1%. The stock has also outperformed its industry peers, including Amkor Technology (AMKR - Free Report) , GlobalFoundries (GFS - Free Report) and Synaptics (SYNA - Free Report) . YTD, shares of GlobalFoundries and Synaptics have returned 15%, 27.1% and 58.4%, respectively, while Amkor Technology shares have lost 0.5%.
YTD Price Return Performance
Image Source: Zacks Investment Research
ASE Technology is currently trading at a higher price-to-earnings (P/E) multiple, significantly higher than the Zacks Electronics - Semiconductors industry. ASX’s forward 12-month P/E ratio sits at 19.98X, significantly higher than the Zacks industry’s forward 12-month P/E ratio of 10.95X.
ASX Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
ASX stock trades at a higher P/E multiple compared with other industry peers, including Amkor Technology and GlobalFoundries, while trading slightly lower than Synaptics. At present, Amkor Technology, GlobalFoundries and Synaptics have P/S multiples of 14.58X, 17.80X and 20.26X, respectively.
Investment Consideration for ASX
ASE Technology is well-positioned to benefit from the growing demand for AI data centers and advanced semiconductor packaging. As AI chips become larger and more complex, demand for advanced packaging, testing and chip integration is expected to increase. The company is seeing strong demand across its LEAP advanced packaging services and traditional ATM business. Rising demand for industrial power, connectivity and storage devices is also creating opportunities in its mainstream packaging and testing operations.
ASE Technology is also expanding its manufacturing capacity, equipment, facilities and automation capabilities to meet rising customer demand. Its scale, technical expertise and position as a pure-play outsourced semiconductor assembly and test provider support its ability to work with foundries and other supply chain partners. LEAP revenues are tracking ahead of the company's previous 2026 guidance of $3.5 billion, and management aims to double LEAP revenues in 2027. Backed by strong customer demand and continued investment in advanced packaging and testing, ASE Technology is well-positioned to benefit from the long-term growth of AI infrastructure.
Conclusion: Buy ASX Stock Right Now
ASE Technology remains well-positioned to benefit from rising AI infrastructure demand, strong growth in advanced semiconductor packaging and increasing demand for testing services. Strong momentum in its LEAP business, favorable margin trends and continued investments in capacity expansion provide attractive long-term growth opportunities as AI chips become more complex and require advanced packaging and integration capabilities.
View the Zacks #1 Rank List
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Ase Technology to Report Q3 Earnings: Buy, Sell or Hold the Stock?
Key Takeaways
Ase Technology (ASX - Free Report) is slated to release third-quarter 2026 results on Oct. 29.
The Zacks Consensus Estimate for third-quarter 2026 revenues is pegged at $7.39 billion, indicating a year-over-year increase of 31.2%.
The Zacks Consensus Estimate for earnings is pegged at 34 cents per share, unchanged over the past 30 days. The projection indicates a 112.5% increase from the figure reported in the year-ago quarter.
Image Source: Zacks Investment Research
Let us see how things have shaped up prior to the announcement.
Earnings Whispers for ASX
Our proven model does not conclusively predict an earnings beat for ASX this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is not the case here.
ASX has an Earnings ESP of 0.00% and sports a Zacks Rank #1 at present. You can uncover the best stocks to buy or sell before they are reported with our Earnings ESP Filter. You can see the complete list of today’s Zacks #1 Rank stocks here.
Factors Likely to Influence ASX’s Q3 Performance
ASE Technology’s third-quarter 2026 performance is expected to have benefited from strong demand across its LEAP advanced packaging services and traditional Assembly, Test and Material (ATM) business. Management projects consolidated revenues to increase 21% to 22% on a sequential basis in the third quarter of 2026. Strong demand from customers for additional capacity in the third and fourth quarters, supported by AI-related semiconductor demand, is expected to have driven growth across both advanced packaging and mainstream services.
The company is expected to have benefited from continued growth in its LEAP and mainstream semiconductor packaging businesses in the third quarter of 2026. Rising demand for AI data centers is increasing the need for advanced packaging, testing and greater chip integration. Demand for industrial power, connectivity and storage devices is also supporting the traditional ATM business. Management expects ATM revenues to grow 11% to 13% sequentially in the third quarter of 2026. Strong demand across assembly and testing services is likely to have supported this performance, while the increasing contribution from LEAP is expected to have remained a key growth driver in the third quarter of 2026.
ASX’s third-quarter performance is expected to have witnessed an improvement in ATM profitability. Management projects ATM gross margin of 28% to 29% in the third quarter of 2026 compared with 27.3% in the second quarter. Higher utilization, a favorable revenue mix, increasing contributions from margin-accretive LEAP and testing services, and improvements in factory automation and efficiency are expected to have supported margins. Management also noted that the pricing environment remains favorable and that the company has been able to pass higher material and component costs on to customers through pricing arrangements.
ASX’s Electronics Manufacturing Services (EMS) business is expected to have reported strong sequential revenue growth in the third quarter of 2026. Management projects EMS revenues to increase approximately 40% quarter over quarter, partly due to higher component prices, particularly in memory. Demand for AI accelerator products is supporting the computing category, while the company is also pursuing opportunities to combine EMS capabilities with ATM technologies in areas such as optical interconnects, power delivery and thermal management. These factors are likely to have aided in the top-line performance in the to-be-reported quarter.
ASX Price Performance & Stock Valuation
ASE Technology shares have rallied 140.3% year to date (YTD), outperforming the Zacks Electronics - Semiconductors industry's appreciation of 9.1%. The stock has also outperformed its industry peers, including Amkor Technology (AMKR - Free Report) , GlobalFoundries (GFS - Free Report) and Synaptics (SYNA - Free Report) . YTD, shares of GlobalFoundries and Synaptics have returned 15%, 27.1% and 58.4%, respectively, while Amkor Technology shares have lost 0.5%.
YTD Price Return Performance
Image Source: Zacks Investment Research
ASE Technology is currently trading at a higher price-to-earnings (P/E) multiple, significantly higher than the Zacks Electronics - Semiconductors industry. ASX’s forward 12-month P/E ratio sits at 19.98X, significantly higher than the Zacks industry’s forward 12-month P/E ratio of 10.95X.
ASX Forward 12-Month P/E Ratio
Image Source: Zacks Investment Research
ASX stock trades at a higher P/E multiple compared with other industry peers, including Amkor Technology and GlobalFoundries, while trading slightly lower than Synaptics. At present, Amkor Technology, GlobalFoundries and Synaptics have P/S multiples of 14.58X, 17.80X and 20.26X, respectively.
Investment Consideration for ASX
ASE Technology is well-positioned to benefit from the growing demand for AI data centers and advanced semiconductor packaging. As AI chips become larger and more complex, demand for advanced packaging, testing and chip integration is expected to increase. The company is seeing strong demand across its LEAP advanced packaging services and traditional ATM business. Rising demand for industrial power, connectivity and storage devices is also creating opportunities in its mainstream packaging and testing operations.
ASE Technology is also expanding its manufacturing capacity, equipment, facilities and automation capabilities to meet rising customer demand. Its scale, technical expertise and position as a pure-play outsourced semiconductor assembly and test provider support its ability to work with foundries and other supply chain partners. LEAP revenues are tracking ahead of the company's previous 2026 guidance of $3.5 billion, and management aims to double LEAP revenues in 2027. Backed by strong customer demand and continued investment in advanced packaging and testing, ASE Technology is well-positioned to benefit from the long-term growth of AI infrastructure.
Conclusion: Buy ASX Stock Right Now
ASE Technology remains well-positioned to benefit from rising AI infrastructure demand, strong growth in advanced semiconductor packaging and increasing demand for testing services. Strong momentum in its LEAP business, favorable margin trends and continued investments in capacity expansion provide attractive long-term growth opportunities as AI chips become more complex and require advanced packaging and integration capabilities.