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TTM Technologies, Inc. TTMI reported third-quarter 2026 non-GAAP earnings of $1.46 per share, up 117.9% year over year. The figure beat the Zacks Consensus Estimate by 16.8%. Revenues jumped 59.9% to $1.2 billion, surpassing the Zacks Consensus Estimate by 6.6%. Strong AI-related demand, defense spending and industrial orders supported growth. The total book-to-bill ratio reached 2.13, indicating that orders outpaced sales. In the reported quarter, Aerospace & Defense segment revenues rose 20.9% year over year to $416.5 million. Commercial segment revenues surged 92.7% to $787.9 million, supported by expanding data center and industrial demand. Data Center and Networking accounted for 41% of sales, compared with 30% a year ago. Aerospace and Defense contributed 34%, down from 45%. Medical, Industrial and Instrumentation represented 18%, while Automotive made up the remaining 7%. TTM Technologies, Inc. price-consensus-eps-surprise-chart | TTM Technologies, Inc. Quote Data Center and Networking end-market sales climbed 115% year over year, driven by demand for advanced printed circuit boards used in AI infrastructure. Medical, Industrial and Instrumentation revenues rose 97%, while Automotive revenues grew 11%. TTMI's 90-day backlog reached $1.3 billion, compared with $610 million a year earlier. Aerospace and Defense program backlog hit a record $2 billion, up from just under $1.5 billion. Commercial and defense book-to-bill ratios stood at 2.5 and 1.6, respectively. Defense bookings included SPY-6 surface ship radar, APS-143 maritime surveillance radar, Golden Dome and restricted programs. Management said it already has visibility into roughly 65% of projected 2027 Aerospace and Defense revenues. The advanced N+M circuit board technology represents about 30% of Data Center and Networking activity and is expected to reach roughly 50% in 2027. Management attributed the slower ramp of one major program to customer scheduling rather than yield or technical problems. Non-GAAP gross margin expanded 330 basis points year over year to 24.8%, benefiting from stronger volumes, a favorable mix and improved execution at the Penang facility. Non-GAAP operating income more than doubled to $209 million, lifting the operating margin 510 basis points to 17.4%. Non-GAAP selling and marketing expenses increased to $23.2 million from $20.5 million. General and administrative expenses rose to $57.3 million from $42.1 million, while research and development expenses reached $9.5 million versus $6.9 million. Adjusted EBITDA doubled to $242.3 million, with the corresponding margin rising 400 basis points to 20.1%. On a GAAP basis, net income increased to $84.8 million, or 79 cents per share, from $53.1 million, or 50 cents, a year earlier. As of Sept. 28, 2026, TTM Technologies' cash and cash equivalents were $876.3 million, compared with $507.9 million as of June 29, 2026. Combined short- and long-term debt stood at approximately $1.64 billion, up from $973.5 million sequentially. In the reported quarter, operating cash flow increased to $154.7 million from $141.8 million a year ago. Net capital expenditures declined to $79.9 million from $99.2 million, helping free cash flow improve to $74.8 million from $42.6 million. TTMI completed the Swiss Technology Group and Epiq Solutions acquisitions, broadening its medical and defense capabilities. The company is also pursuing the purchases of Germany-based ILFA and two U.K. printed circuit board businesses. The planned $650 million acquisition of Ophir Optics from MKS is expected to close in the second quarter of 2027. It would add infrared and laser optics capabilities to TTM Technologies' sensing portfolio. Separately, management announced an additional $400 million capacity expansion to support N+M demand, with production focused on 2028. For the fourth quarter of 2026, TTM Technologies projects revenues of $1.42 billion to $1.44 billion and non-GAAP earnings of $1.77 to $1.83 per share. Data Center and Networking is expected to generate about 49% of quarterly sales. For full-year 2026, the company now expects revenues of $4.47 billion to $4.49 billion and non-GAAP earnings of $4.97 to $5.03 per share. Preliminary 2027 guidance calls for revenues of $6.5 billion to $6.75 billion and non-GAAP earnings of $8.1 to $8.9 per share. The forecasts include closed acquisitions and related financing but exclude pending transactions. TTM Technologies currently carries a Zacks Rank #3 (Hold). ASE Technology ASX, Commvault Systems CVLT and Fortinet FTNT are among the better-ranked stocks that investors can consider in the broader Zacks Computer and Technology sector. Currently, ASE Technology sports a Zacks Rank #1 (Strong Buy), while Commvault Systems and Fortinet carry a Zacks Rank #2 (Buy) each. You can see the complete list of today's Zacks #1 Rank stocks here. ASE Technology's shares have surged 134.4% year to date. ASX is scheduled to report its third-quarter 2026 results on Oct. 29. Commvault Systems' shares have gained 33.9% year to date. CVLT is scheduled to report its fiscal second-quarter 2027 results on Oct. 27. Fortinet's shares have climbed 117.9% year to date. FTNT is slated to report its third-quarter 2026 results on Oct. 28. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report TTM Technologies, Inc. (TTMI) : Free Stock Analysis Report CommVault Systems, Inc. (CVLT) : Free Stock Analysis Report Fortinet, Inc. (FTNT) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Lam Research Corporation LRCX reported first-quarter fiscal 2027 non-GAAP earnings of $2.20 per share, up 74.6% year over year and 20.9% sequentially. The figure surpassed the Zacks Consensus Estimate of $2.17 by 1.38%, supported by favorable product mix and improving operating leverage. Revenues jumped 54.4% from the prior-year quarter and 22.3% sequentially to $8.22 billion, beating the consensus mark of $8.14 billion by 0.98%. Growth reflected strong foundry and NAND investments, while customer support posted its fourth consecutive quarterly revenue record. Systems revenues rose 61.6% year over year and 34.9% sequentially to $5.73 billion. Memory made up 46% of systems revenues compared with 34% a year earlier, with its dollar contribution more than doubling. Non-volatile memory accounted for 26% of systems revenues, up from 23% in the previous quarter. NAND sales increased about 40% sequentially, benefiting from conversions to 256-layer-and-above devices and initial investments in 384-layer technology. DRAM contributed 20%, versus 23% sequentially, as spending supported DDR5 and high-bandwidth memory. Lam Research Corporation price-consensus-eps-surprise-chart | Lam Research Corporation Quote Foundry reached record revenues, representing 46% of systems sales versus 44% in the June quarter. Demand came from leading-edge chipmaking and advanced packaging as well as mature-node capacity spending in China. China represented 35% of total revenues, up from 26% in the previous quarter, with domestic and multinational customers contributing. Korea generated 20% of revenues, unchanged sequentially, while Taiwan accounted for 18%, down from 27%. Lam Research expects China's revenue share to fall significantly in the December quarter. Customer support-related revenues and other reached $2.49 billion, up 40% year over year and 0.6% sequentially. The Customer Support Business Group ("CSBG") benefited from high equipment utilization, NAND upgrades and demand for spares and services. The company's Equipment Intelligence offerings and Dextro maintenance cobots helped win performance-based contracts with multiple memory manufacturers. Management expects CSBG revenue growth of more than 30% in calendar year 2026 and more than 15% in calendar year 2027. Non-GAAP gross margin climbed 180 basis points year over year and 40 basis points sequentially to a record 52.4%, aided by favorable customer and product mix. Non-GAAP operating margin reached 40.2%, rising 520 basis points year over year and 180 basis points sequentially. Non-GAAP operating expenses increased to $1 billion from $916 million in the previous quarter, primarily on higher incentive compensation tied to profitability. The company also stepped up investment in product programs, with research and development comprising roughly two-thirds of total operating expenses. Its non-GAAP tax rate increased to 16.5% from 11%, reflecting higher U.S. taxation of foreign earnings and shifts in the geographic income mix. Lam Research expects calendar year 2026 wafer fabrication equipment spending in the mid-$150-billion range and projects more than $200 billion in 2027. DRAM is expected to lead growth, followed by leading-edge foundry and NAND. Management also projects calendar year 2026 systems revenue growth well above 40%. In foundry and DRAM, its Akara etch and Aether dry resist products are gaining traction. Management lifted its cumulative Aether revenue outlook to approximately $2.5 billion by decade-end, up roughly $1 billion from its prior view. Panel plating systems have reached more than 20 customers, reflecting opportunities in advanced packaging. Operating cash flow increased to $3.50 billion from $1.46 billion in the June quarter, lifting free cash flow to a record $3.24 billion. Cash, cash equivalents and restricted cash grew to $7.45 billion from $5.60 billion. Inventory increased to $4.55 billion from $4.28 billion as Lam Research prepared for higher demand, but inventory turns improved to 3.4 from 3.0. Capital expenditures rose to $258 million from $189 million for laboratory and manufacturing expansion. The company repurchased about $1.01 billion in shares and paid $325 million in dividends. For the second quarter of fiscal 2027, Lam Research expects revenues of $8.60 billion, plus or minus $400 million. Non-GAAP earnings are projected at $2.33 per share, plus or minus 15 cents, based on approximately 1.253 billion shares. The company forecasts a non-GAAP gross margin of 52.5%, plus or minus one percentage point, and an operating margin of 40.5%, plus or minus one percentage point. Management noted that December revenue guidance would have been slightly higher without near-term supply constraints, while customer mix is expected to weigh on gross margin. Lam Research currently carries a Zacks Rank #2 (Buy). Some other top-ranked stocks in the broader Zacks Computer and Technology sector are NVIDIA NVDA, Micron Technology MU and ASE Technology ASX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Shares of NVIDIA have risen 19.1% year to date (YTD). The Zacks Consensus Estimate for NVIDIA's fiscal 2027 earnings has been revised upward by a penny to $9.30 per share over the past seven days, indicating a 95% year-over-year increase. Shares of Micron Technology have skyrocketed 220.2% YTD. The Zacks Consensus Estimate for Micron Technology's fiscal 2027 earnings has improved 12.2% to $177.73 per share over the past 30 days, calling for a rise of 135.3% year over year. ASE Technology shares have surged 163.5% YTD. The Zacks Consensus Estimate for ASX's 2026 earnings has been revised upward by 4 cents over the past 30 days to $1.27 per share, implying an increase of 122.8% year over year. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Lam Research Corporation (LRCX) : Free Stock Analysis Report Micron Technology, Inc. (MU) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Vicor Corporation VICR shares have gained 4.5% since it reported third-quarter 2026 results on Oct. 20. The uptick can be attributed to strong AI-driven demand and rising recurring royalty revenues, which lifted sales, margins and profitability. The company reported third-quarter 2026 earnings of $1.33 per share, missing the Zacks Consensus Estimate by 4.32%. The figure increased 111.1% year over year. Revenues surged 78.5% year over year to $197.11 million and surpassed the consensus estimate by 5.4%. Strong Advanced Products sales and higher royalty income supported growth. The company's order backlog increased 166% year over year to $406 million, reflecting robust demand. Advanced Products revenues, including royalties, increased 47.5% sequentially to $138.9 million. The business accounted for 70.4% of total revenues, up from 65.7% in the preceding quarter. Vicor Corporation price-consensus-eps-surprise-chart | Vicor Corporation Quote Brick Products revenues increased 18.4% sequentially to $58.3 million and represented 29.6% of total revenues. Shipments to stocking distributors increased 24.8% sequentially and 16.2% year over year. Exports accounted for approximately 36.1% of revenues, down from 46% in the second quarter of 2026. Product revenues totaled $130.5 million, up 47.1% year over year. Royalty revenues surged 206.6% year over year to $66.6 million from $21.7 million. Sequentially, royalty revenues increased 119.1%, supported by licensing agreements. The company granted its first vertical power delivery (VPD) license to a leading artificial intelligence (AI) original equipment manufacturer at Stage 2-unit royalty rates. Management noted that part of the quarterly royalty contribution reflected initial payments, while the underlying licensing arrangements provide recurring income. Vicor also received inquiries from hyperscalers regarding broader licensing agreements. Management expects royalty income to grow as additional customers adopt its intellectual property, although the timing of payments and new agreements could create quarterly fluctuations. The book-to-bill ratio remained above 1, while backlog increased 7% sequentially to $380 million. Management highlighted approximately $100 million in bookings during the first two weeks of the fourth quarter, including a substantial order for second-generation VPD modules. Demand remained strong across AI computing, automatic test equipment (ATE), industrial, aerospace and defense markets. The company's ATE business, which serves semiconductor and memory testing applications, now generates more than $100 million in annual revenues. Management highlighted growing customer interest in second-generation VPD technology following demonstrations at Open Compute. The technology aims to address increasing power density and efficiency requirements for advanced AI processors. Gross profit increased sequentially to $134.7 million from $83.1 million. Gross margin expanded 1,030 basis points to 68.3%, benefiting from higher royalty revenues, improved product mix, manufacturing efficiencies and increased volumes. Operating expenses increased 29.6% sequentially to $62.5 million. Legal expenses, a substantial portion of which are linked to royalty revenues, increased approximately $11.1 million to $16.1 million. Management expects legal expenses to average approximately 20% of royalty revenues in the near term. Operating income surged 245.1% year over year to $72.1 million from $20.9 million in the year-ago quarter. As of Sept. 30, 2026, cash and cash equivalents totaled $513.1 million compared with $453.6 million in the previous quarter. Operating activities generated $69.7 million in cash compared with $34 million in the second quarter. Vicor acquired two additional manufacturing sites within 30 miles of its existing Andover facility. The planned Fab-2 and Fab-3 facilities could increase manufacturing capacity nearly fivefold relative to Fab-1. Management expects initial equipment deployment at Fab-2 in the second quarter of 2027. The expansion will initially target capacity-constrained manufacturing processes. The company expects to fund its expansion plans without raising additional capital. Vicor expects fourth-quarter 2026 product revenues to increase approximately 10% sequentially. The outlook assumes another double-digit sequential increase in Advanced Products hardware revenues. Management also expects at least $43 million in fourth-quarter royalty revenues, assuming no additional licensing agreements. Existing arrangements could generate incremental royalties beyond this baseline. The company anticipates further margin expansion as revenues increase and manufacturing utilization improves. However, near-term capacity constraints at Fab-1 remain a consideration as Vicor works to expand production capabilities and meet growing customer demand. Vicor currently sports a Zacks Rank #1 (Strong Buy). Alkami Technology ALKT, ASE Technology ASX, and Entegris ENTG are some other top-ranked stocks in the broader Zacks Computer and Technology sector. While ASE Technology sports a Zacks Rank #1, Alkami Technology and Entegris carry a Zacks Rank #2 (Buy) each at present. You can see the complete list of today's Zacks #1 Rank stocks here. Alkami Technology, ASE Technology and Entegris are expected to report their quarterly results on Oct. 28, Oct. 29 and Oct. 29, respectively. While Shares of ASE Technology and Entegris have surged 163.5% and 75.3%, respectively, Alkami Technology shares have plunged 34.5% in the year-to-date period. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Vicor Corporation (VICR) : Free Stock Analysis Report Entegris, Inc. (ENTG) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Alkami Technology, Inc. (ALKT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Meta Platforms' META third-quarter 2026 results, set to be reported on Oct. 21, are expected to reflect higher advertising revenues, driven by sustained growth in user engagement and ad impressions across its Family of Apps. In the second quarter of 2026, Meta Platforms reported $59.4 billion in ad revenues, up 27% year over year, with a 14% increase in ad impressions and a 12% rise in average price per ad. The company's growing adoption of AI-powered advertising tools is also expected to support advertising revenue growth. The Zacks Consensus Estimate for Meta Platforms' third-quarter advertising revenues is pegged at $61.808 billion, indicating growth of 23.41% year over year. Click here to learn how Meta Platforms' overall third-quarter performance is likely to be. Meta Platforms' third-quarter performance is expected to have benefited from aggressive artificial intelligence (AI) investments, which are improving user engagement, content recommendations and advertising efficiency across Instagram, Threads and WhatsApp. The company's AI-powered recommendation systems and advertising tools are likely to have driven monetization and supported Family of Apps revenue growth in the quarter to be reported. Meta Platforms, Inc. price-eps-surprise | Meta Platforms, Inc. Quote Instagram is benefiting from AI-driven improvements in Feed and Reels recommendations. In the second quarter of 2026, global time spent on Instagram increased at a double-digit rate year over year, primarily driven by improved recommendations. Meta Platforms' integration of large language models (LLMs) into content-ranking systems is enhancing personalization and content discovery. Early LLM-based advertising initiatives delivered a 1% increase in app event conversions on Instagram, highlighting improving monetization efficiency. The company's latest Reels ranking improvements drove a 15-basis-point increase in Instagram sessions, supporting engagement growth. Threads is emerging as an important growth driver for META. The platform surpassed 500 million monthly active users in the second quarter of 2026. Meta Platforms completed the global expansion of advertisements on Threads during the quarter, which is expected to have supported advertising revenue growth in the third quarter. WhatsApp is also benefiting from Meta Platforms' AI expansion. The company made its AI-powered business agents globally available on WhatsApp and Messenger, with more than 1 million businesses using them weekly to interact with customers or complete sales. WhatsApp's paid messaging business also remains a key growth driver. The Zacks Consensus Estimate for Meta Platforms' third-quarter Family of Apps revenues is pegged at $62.866 billion, indicating growth of 23.82% year over year. Meta Platforms currently has a Zacks Rank #3 (Hold). Alkami Technology ALKT, ASE Technology ASX, and Entegris ENTG are some better-ranked stocks in the broader Zacks Computer and Technology sector. While ASE Technology sports a Zacks Rank #1 (Strong Buy), Alkami Technology and Entegris carry a Zacks Rank #2 (Buy) at present. You can see the complete list of today's Zacks #1 Rank stocks here. Alkami Technology, ASE Technology and Entegris are expected to report their quarterly results on Oct. 28, Oct. 29 and Oct. 29, respectively. While shares of ASE Technology and Entegris have surged 153.5% and 71.6%, Alkami Technology shares have plunged 39.2% in the year-to-date period. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Meta Platforms, Inc. (META) : Free Stock Analysis Report Entegris, Inc. (ENTG) : Free Stock Analysis Report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Alkami Technology, Inc. (ALKT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ASE Technology Holding ASX reported second-quarter 2026 earnings of 29 cents per ADS, up 167.9% year over year, beating the Zacks Consensus Estimate by 26.09%.Revenues increased 26.7% year over year and 10% sequentially to NT$191.06 billion in the second quarter of 2026. In U.S. dollar terms, revenues of $6.05 billion surpassed the Zacks Consensus Estimate by 0.96%.Results reflected robust artificial intelligence (AI)-driven demand for advanced packaging and testing services, with Assembly, Testing and Materials (ATM) revenues surging 36.3% year over year and the company's Leading-edge Advanced Packaging (LEAP) portfolio maintaining strong momentum. ATM revenues totaled NT$126.15 billion, increasing 12.2% sequentially and 36.3% year over year. Packaging revenues rose 35% to NT$100.32 billion, while testing revenues advanced 42% to NT$23.67 billion. ASE Technology Holding Co., Ltd. price-consensus-eps-surprise-chart | ASE Technology Holding Co., Ltd. Quote Management cited strong demand across both leading-edge advanced packaging services, known as LEAP and general semiconductor services. Wire bonding, wafer sort and final test capacity remained tight, while blended ATM utilization was between 80% and 85%. Computing represented 30% of ATM revenues, up from 24% in the year-ago quarter. Communication’s contribution declined to 41% of the mix from 46%, while automotive, consumer and other applications accounted for 29%.By service type, bumping, flip-chip, wafer-level packaging and system-in-package services contributed 49% of ATM revenues. Wire bonding accounted for 24%, testing represented 19%, other services contributed 6%, and materials made up 2%. Electronic Manufacturing Services revenues increased 11.9% year over year and 6.3% sequentially to NT$65.79 billion. Communication applications represented 30% of EMS revenues, computing contributed 16% and consumer products accounted for 28%.EMS gross margin declined 60 basis points sequentially to 8.9%, while operating margin fell to 2.4% from 3% in the prior quarter. Product-mix changes and higher component costs weighed on profitability, partly offsetting the benefit of higher revenues. Consolidated gross profit increased 56% year over year to NT$40.15 billion. Gross margin expanded 400 basis points to 21%, reflecting higher ATM loading, structural efficiency gains and a more favorable New Taiwan dollar environment.Operating income more than doubled to NT$21.13 billion, while the operating margin improved 430 basis points to 11.1%. Operating expenses rose to NT$19.02 billion mainly due to higher labor costs and increased research and development spending for LEAP initiatives. ATM operating margin reached 15.7%, up from 9.5% a year earlier. Equipment capital expenditures totaled $1.70 billion during the second quarter, including $840 million for packaging operations, $804 million for testing, $49 million for EMS operations and $2 million for interconnect materials operations and other activities. The company invested $658 million in buildings and facilities during the quarter as it continued expanding manufacturing capacity. Management said investments remain focused on addressing semiconductor supply bottlenecks and supporting the growing AI build-out, with additional spending directed toward advanced capacity, automation and smart factory infrastructure to support long-term growth. As of June 30, 2026, ASE Technology held NT$107.37 billion in cash, cash equivalents and current financial assets. Total interest-bearing debt increased to NT$306.23 billion, while unused credit facilities totaled NT$396.20 billion. The net debt-to-equity ratio was 0.47. For the second quarter of 2026, net cash generated from operating activities was NT$47.01 billion. For the third quarter, management expects consolidated revenues to increase 21%-22% sequentially in New Taiwan dollar terms. Gross margin is projected to be between 20.5% and 21.5%, while operating margin is expected to be in the 11.5%-12.5% range. ATM revenues are forecast to grow 11%-13% sequentially, with gross margin between 28% and 29%. EMS revenues are projected to increase approximately 40% sequentially, with operating margin expected to be between 3.2% and 3.4%. Management now expects full-year ATM revenues to increase 35%, while general ATM services are projected to grow 20%, above the previous estimate of 13%. LEAP revenues are tracking ahead of the prior $3.5 billion target, supported by sustained AI demand across industrial, connectivity, storage and data center applications. Management reiterated its view that AI represents a multiyear technology transition, with advanced packaging becoming an increasingly important part of semiconductor system architecture. ASE Technology Holding currently flaunts a Zacks Rank #1 (Strong Buy).Some other top-ranked stocks in the broader Zacks Computer and Technology sector include Kimball Electronics KE, Datadog DDOG and Onto Innovation ONTO. Each stock currently sports a Zacks Rank of 1. You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of Kimball Electronics have lost 11.7% in the year-to-date period. KE is set to report the fourth quarter of fiscal 2026 results on Aug. 12.Shares of Datadog have surged 97.5% in the year-to-date period. DDOG is slated to report second-quarter 2026 results on Aug. 6.Onto Innovation shares have gained 58.7% in the year-to-date period. ONTO is set to report first-quarter fiscal 2027 results on Aug. 6. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report Kimball Electronics, Inc. (KE) : Free Stock Analysis Report Datadog, Inc. (DDOG) : Free Stock Analysis Report Onto Innovation Inc. (ONTO) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

ASE Technology Holding Co., Ltd. ASX emphasized expanding AI-related semiconductor infrastructure capacity as management outlined stronger demand, higher capital spending and long-term growth opportunities during its second-quarter 2026 earnings call. Executives highlighted tight capacity across advanced packaging and testing, with execution and expansion becoming the key focus areas as the company scales AI-related services. Group COO and Representative Director Tien Wu said AI is creating new hardware requirements involving greater complexity, integration and scale. He described hardware infrastructure as a key bottleneck for future AI applications. Wu said packaging is moving higher in the system architecture value chain as customers require more advanced integration capabilities. He emphasized ASE’s role as a pure-play provider that can collaborate across the semiconductor ecosystem. ASE reported second-quarter revenue of $6.04 billion, topping the consensus estimate of $5.99 billion. Revenues were also up 10% sequentially and 27% year over year, while gross margin reached 21%. EPS of $0.29 exceeded the Zacks Consensus Estimate of $0.23. ASE Technology Holding Co., Ltd. price-consensus-eps-surprise-chart | ASE Technology Holding Co., Ltd. Quote ASE said advanced packaging and testing demand remained strong, with blended utilization between 80% and 85%. Head of Investor Relations and Senior VP Kenneth Hsiang noted that growth was limited by equipment installation and facility expansion rather than demand. The company’s ATM business delivered record revenue of NT$126.1 billion, growing 36% year over year. Management attributed margin improvement to higher utilization, operating leverage and a stronger LEAP services mix. ASE reported ATM gross margin of 27.3%, while operating margin increased to 15.7%. The company said LEAP-related services and testing capacity expansion remained central to future growth. CFO Joseph Tung said ASE increased planned capital spending by another $2 billion, bringing total 2026 CapEx to about $10.5 billion. The company expects $4 billion for facilities and $6.5 billion for equipment. Tung said ASE is managing significant expansion activity, including 13 greenfield projects and eight brownfield projects. The investments are intended to support leading-edge packaging, testing and broader market demand. The company’s second-quarter equipment CapEx totaled $1.7 billion, with spending focused primarily on packaging and testing operations. ASE maintained that its balance sheet remains positioned to support the investment cycle. Management raised expectations for LEAP services, stating that 2026 revenue is tracking ahead of its previous $3.5 billion target. CFO Joseph Tung said the company aims to double LEAP revenue in 2027. Analysts questioned the visibility behind the 2027 LEAP outlook and the contribution from full-process services. Management said capacity plans and customer demand provide visibility, while execution remains the key challenge. ASE also discussed future technologies, including panel-level packaging and optical interconnects. Wu said the company’s panel process fully automated line is expected to begin production in the first quarter of next year. A Morgan Stanley analyst asked about pricing actions and long-term margin potential. CFO Joseph Tung said ASE continues to operate in a favorable pricing environment and expects margin expansion from higher-value businesses and efficiency improvements. Tung said fourth-quarter ATM gross margin is expected to exceed the company’s structural margin ceiling of 30%, prompting a review of the long-term margin range. ASE’s balance sheet showed cash and current financial assets of NT$107.4 billion, while net debt to equity was 47%. Management said funding sources remain available to support continued investment. ASE entered the second half of 2026 focused on expanding capacity for AI-related demand while supporting general semiconductor applications. Management emphasized that execution speed remains critical as customers seek additional capacity. Wu said the company is building infrastructure aimed at long-term technology transitions rather than short-term demand cycles. He highlighted AI data centers, future computing platforms and advanced integration needs as key areas.The company expects third-quarter consolidated revenue to grow 21% to 22% sequentially, with ATM revenue expected to increase 11% to 13% sequentially. ASE carries Zacks Rank #1 (Strong Buy), indicating that earnings estimate revisions are a key factor supporting the current ranking. The Zacks Rank is designed to help identify stocks with stronger potential over the next one to three months based on estimate revision trends. You can see the complete list of today’s Zacks #1 Rank stocks here. The stock has a Value Score of C, Growth Score of A, Momentum Score of C and VGM Score of B. Zacks Style Scores range from A to F, with higher scores representing stronger characteristics within each style category. The Zacks Rank can change as analysts update earnings estimates following new company developments. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report ASE Technology Holding Co., Ltd. (ASX) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

TAIPEI, July 30, 2026 /PRNewswire/ -- ASE Technology Holding Co., Ltd. (TWSE: 3711, NYSE: ASX) ("We", "ASEH", or the "Company"), the leading provider of semiconductor assembly and testing services ("ATM") and the provider of electronic manufacturing services ("EMS"), today reported its unaudited[1] net revenues of NT$191,064 million for 2Q26, up by 26.7% year-over-year and up by 10.0% sequentially. Net income attributable to shareholders of the parent for the quarter totaled NT$21,068 million, up from NT$7,521 million in 2Q25 and up from NT$14,132 million in 1Q26. Basic earnings per share for the quarter were NT$4.80 (or US$0.304 per ADS), compared to NT$1.74 for 2Q25 and NT$3.23 for 1Q26. Diluted earnings per share for the quarter were NT$4.61 (or US$0.292 per ADS), compared to NT$1.70 for 2Q25 and NT$3.08 for 1Q26. RESULTS OF OPERATIONS 2Q26 Results Highlights – Consolidated Net revenues from packaging operations, testing operations, EMS operations, and others represented approximately 52%, 13%, 34%, and 1% of the total net revenues for the quarter, respectively. Cost of revenues was NT$150,914 million for the quarter, up from NT$138,844 million in 1Q26.- Raw material cost totaled NT$86,253 million for the quarter, representing 45% of the total net revenues.- Labor cost totaled NT$21,920 million for the quarter, representing 11% of the total net revenues.- Depreciation, amortization and rental expenses totaled NT$18,441 million for the quarter. Gross margin increased by 1 percentage point to 21.0% in 2Q26 from 20.0% in 1Q26. Operating margin was 11.1% in 2Q26, compared to 10.1% in 1Q26. Non-operating items:- Net interest expense was NT$1,853 million.- Net gain on foreign exchange hedging activities of NT$3,637 million.- Net gain on equity-method investments was NT$2,298 million.- Other net non-operating income was NT$484 million, primarily attributable to miscellaneous income.Total non-operating income for the quarter was NT$4,566 million. Income before tax was NT$25,700 million in 2Q26, compared to NT$18,161 million in 1Q26. We recorded income tax expenses of NT$4,172 million for the quarter, compared to NT$3,629 million in 1Q26. Net income attributable to shareholders of the parent was NT$21,068 million in 2Q26, compared to NT$7,521 million in 2Q25 and NT$14,132 million in 1Q26. Our total number of shares outstanding at the end of the quarter was 4,470,572,282, including treasury stock owned by our subsidiaries in 2Q26. Our 2Q26 basic earnings per share of NT$4.80 (or US$0.304 per ADS) were based on 4,386,711,875 weighted average number of shares outstanding in 2Q26. Our 2Q26 diluted earnings per share of NT$4.61 (or US$0.292 per ADS) were based on 4,505,702,583 weighted average number of shares outstanding in 2Q26. 2Q26 Results Highlights – ATM Net revenues were NT$126,148 million for the quarter, up by 36.3% year-over-year and up by 12.2% sequentially. Cost of revenues was NT$91,657 million for the quarter, up by 26.7% year-over-year and up by 10.1% sequentially.- Raw material cost totaled NT$34,782 million for the quarter, representing 28% of the total net revenues.- Labor cost totaled NT$18,255 million for the quarter, representing 14% of the total net revenues.- Depreciation, amortization and rental expenses totaled NT$16,940 million for the quarter. Gross margin increased by 1.3 percentage points to 27.3% in 2Q26 from 26.0% in 1Q26. Operating margin was 15.7% in 2Q26, compared to 14.1% in 1Q26. 2Q26 Results Highlights – EMS Net revenues were NT$65,789 million, up by 11.9% year-over-year and up by 6.3% sequentially. Cost of revenues for the quarter was NT$59,916 million, up by 12.6% year-over-year and up by 7.0% sequentially.- Raw material cost totaled NT$51,810 million for the quarter, representing 79% of the total net revenues.- Labor cost totaled NT$3,595 million for the quarter, representing 5% of the total net revenues.- Depreciation, amortization and rental expenses totaled NT$1,259 million for the quarter. Gross margin decreased by 0.6 percentage points to 8.9% in 2Q26 from 9.5% in 1Q26. Operating margin was 2.4% in 2Q26, compared to 3.0% in 1Q26. LIQUIDITY AND CAPITAL RESOURCES Equipment capital expenditures in 2Q26 totaled US$1,695 million, of which US$840 million was used in packaging operations, US$804 million in testing operations, US$49 million in EMS operations and US$2 million in interconnect materials operations and others. Total unused credit lines amounted to NT$396,197 million as of June 30, 2026. Current ratio was 1.07 and net debt to equity ratio was 0.47 as of June 30, 2026. Total number of employees was 114,179 as of June 30, 2026, compared to 107,950 as of March 31, 2026. BUSINESS REVIEW Customers ATM BASIS Our five largest customers together accounted for approximately 44% of our total net revenues in 2Q26, compared to 43% in 1Q26. One customer accounted for more than 10% of our total net revenues in 2Q26. Our top 10 customers contributed 60% of our total net revenues in 2Q26, compared to 58% in 1Q26. Our customers that are integrated device manufacturers or IDMs accounted for 41% of our total net revenues in 2Q26, compared to 38% in 1Q26. EMS BASIS Our five largest customers together accounted for approximately 58% of our total net revenues in 2Q26, compared to 64% in 1Q26. One customer accounted for more than 10% of our total net revenues in 2Q26. Our top 10 customers contributed 69% of our total net revenues in 2Q26, compared to 71% in 1Q26. About ASE Technology Holding Co., Ltd. ASEH is the leading provider of semiconductor manufacturing services in assembly and test. The Company develops and offers complete turnkey solutions covering front-end engineering test, wafer probing and final test, as well as packaging, materials and electronic manufacturing services through USI with superior technologies, breakthrough innovations, and advanced development programs. With advanced technological capabilities and a global presence spanning Taiwan, China, South Korea, Japan, Singapore, Malaysia, the Philippines, Vietnam, Mexico, and Tunisia as well as the United States and Europe, ASEH has established a reputation for reliable, high quality products and services. For more information, please visit our website at https://www.aseglobal.com. Safe Harbor Notice This press release contains "forward-looking statements" within the meaning of Section 27A of the United States Securities Act of 1933, as amended, and Section 21E of the United States Securities Exchange Act of 1934, as amended. These statements are made under the "safe harbor" provisions of the U.S. Private Securities Litigation Reform Act of 1995. Although these forward-looking statements, which may include statements regarding our future results of operations, financial condition or business prospects, are based on our own information and information from other sources we believe to be reliable, you should not place undue reliance on these forward-looking statements, which apply only as of the date of this press release. The words "anticipate," "believe," "estimate," "expect," "intend," "plan" and similar expressions, as they relate to us, are intended to identify these forward-looking statements in this press release. These forward-looking statements are necessarily estimates reflecting the best judgment of our senior management and our actual results of operations, financial condition or business prospects may differ materially from those expressed or implied by the forward-looking statements for reasons including, among others, risks associated with cyclicality and market conditions in the semiconductor or electronic industry; changes in our regulatory environment, including our ability to comply with new or stricter environmental regulations and to resolve environmental liabilities; demand for the outsourced semiconductor packaging, testing and electronic manufacturing services we offer and for such outsourced services generally; the highly competitive semiconductor or manufacturing industry we are involved in; our ability to introduce new technologies in order to remain competitive; international business activities; our business strategy; our future expansion plans and capital expenditures; the strained relationship between the Republic of China and the People's Republic of China; general economic and political conditions; the recent shift in United States trade policies; possible disruptions in commercial activities caused by natural or human-induced disasters; fluctuations in foreign currency exchange rates; and other factors. For a discussion of these risks and other factors, please see the documents we file from time to time with the Securities and Exchange Commission, including the 2025 Annual Report on Form 20-F filed on April 1, 2026. Supplemental Financial Information(Unaudited) Consolidated Operations ATM Operations EMS Operations Investor Relations Contact [email protected] Tel: +886.2.6636.5678 https://www.aseglobal.com View original content:https://www.prnewswire.com/news-releases/ase-technology-holding-co-ltd-reports-its-unaudited-consolidated-financial-results-for-the-second-quarter-of-2026-302838714.html