Earnings Call Intelligence Subscribe
Home › Call Sheets › ASX › Q2'26
Call sheet · Q2'26

ASE Technology Holdings (ASX)

Q2'26 earnings call · held 2026-07-30 · compared with the Q1'26 call · management-credibility review
6/12
Disclosure score
3 high, 5 medium, 1 low flags
Financial quality
Bottom line
The market sees 36% ATM growth and LEAP doubling, but ASX is building $10B worth of capacity for demand they can't quantify, burning cash while depreciation runs ahead of revenue. The real story isn't growth; it's that they're capacity constrained because they're building 21 facilities simultaneously and 'just trying to keep up' by their own admission. Dr. Wu philosophizing about '15-20 year technology development' while dodging every specific question about full process margins and CPO revenue tells you they don't have visibility. My view changes if they provide full process gross margins above 35% or LEAP revenue breakdown showing full process exceeding $500M run rate.

The 30-second version

  • Full process LEAP margins are MIA while depreciation explodes: the $10B CapEx trap nobody's talking about
  • LEAP doubling to $8B in 2027 sounds great until you realize it's all capacity constrained, not demand driven
  • EMS revenue jumps 40% Q/Q but it's a mirage: all memory component price inflation

What changed this quarter

MetricQ1'26Q2'26Change
Consolidated Revenue$173.7B TWD (+17% YoY)$191.1B TWD (+27% YoY)+10% QoQ acceleration
EPS (Diluted)$3.08 TWD$4.61 TWD+50% QoQ surge
ATM Revenue$112.4B TWD (+30% YoY)$126.1B TWD (+36% YoY)+12% QoQ beat guidance
ATM Gross Margin26.0%27.3%+130 bps expansion
ATM Operating Margin14.1%15.7%+160 bps expansion
EMS Revenue$61.9B TWD$65.8B TWD+6% QoQ (40% guided for Q3)
EMS Operating Margin3.1%2.4%-70 bps compression
CapEx (Machinery)$1.0B USD$1.7B USD+70% QoQ explosion
Total Debt$265.3B TWD$306.2B TWD+$41B debt surge
Net Debt to Equity40%47%+700 bps deterioration

Accountability tracked

7 new promises made5 narrative shifts flagged6 prior promises scored
Inside the full report
The complete write-up covers the full promise ledger with kept/missed calls, disclosure-quality scoring, the metrics-vanished check, verification items, and the questions to ask next quarter.
Read the full ASX Q2'26 report Subscribe
About Research ↗Call SheetsCredibility IndexMissed PromisesScreens13F BooksData & InstitutionalPrivacyTermsSubscribe
This is a free preview. The full write-up and promise ledger are published to subscribers on Substack.
Scores, kept-promise rates, and flags on this site reflect the author's opinion, applying a stated methodology to statements management made on public earnings calls. Informational and educational purposes only - not investment advice, a recommendation, or an offer to buy or sell any security. Sources believed reliable but not guaranteed; the author may hold positions in the securities discussed.

Follow what management promises next

Get free previews of our earnings-call research: the key changes, management scores, and questions worth investigating. Subscribe for full call sheets and deeper analysis.

Subscriptions are managed by Substack. If the form does not load, subscribe directly. Or follow the RSS feed.