ASE Technology Holding Co., Ltd. (NYSE: ASX), a leading provider of semiconductor manufacturing services, saw its stock soar 5.41% in pre-market trading on Thursday following the release of its impressive third-quarter earnings report for 2025.
The company reported a significant increase in its financial performance, with net income attributable to shareholders rising to NT$10,870 million, up from NT$9,733 million in the same period last year. Earnings per share (EPS) reached NT$2.50 (US$0.168 per ADS), marking a substantial improvement from NT$2.25 in Q3 2024. The strong results were driven by robust revenue growth, with total net revenues increasing 5.3% year-over-year to NT$168,569 million.
ASE Technology's core businesses showed remarkable growth, particularly in its assembly, testing, and materials (ATM) operations. Net revenues from ATM operations rose 16.9% year-over-year to NT$100,289 million, underscoring the company's continued dominance in the semiconductor assembly and testing market. The packaging and testing segments demonstrated particularly strong performance, reflecting increased demand for advanced packaging solutions in the tech industry. Additionally, the electronic manufacturing services (EMS) division saw a sequential revenue increase of 17.4%, despite a year-over-year decline.
The company's profitability also improved, with gross margin increasing to 17.1% and operating margin rising to 7.8% in Q3, reflecting effective cost management and operational efficiencies. These strong results highlight ASE Technology's ability to capitalize on the growing demand for semiconductor manufacturing services and its strategic position in the global tech supply chain.
As the semiconductor industry continues to face robust demand across various sectors, including communication, computing, and automotive, ASE Technology's strong performance and market position suggest it is well-positioned to benefit from these industry trends in the coming quarters.