ASML Holding N.V. reported first‑quarter 2026 results on April 15, 2026, delivering net sales of €8.8 billion and net income of €2.8 billion, a gross margin of 53.0 % that sits at the high end of the company’s guidance range. The quarter’s revenue grew 13.3 % year‑over‑year, driven by a 30 % increase in EUV system sales and a 16.6 % rise in installed‑base revenue, which exceeded guidance and underscored the resilience of its recurring‑revenue model.
The strong performance was largely a result of a shift toward higher‑margin EUV and installed‑base services. EUV systems accounted for 66 % of net system sales, up from 48 % in the prior quarter, while memory applications rose to 51 % of system sales, reflecting robust demand from AI‑focused customers in Taiwan, South Korea and the United States. China sales fell to 19 % of total, a decline from 36 % in Q4 2025, as export‑control headwinds limited the company’s ability to sell to mainland China.
ASML’s basic earnings per share were €7.15, beating analyst consensus estimates of €6.36–€6.57 and a $7.72 estimate in U.S. dollars. The earnings beat was driven by disciplined cost management and a favorable product mix that amplified margin expansion, offsetting the impact of higher raw‑material costs and the need to invest in next‑generation EUV technology. The company’s operating performance was supported by strong demand from AI‑driven customers, which has accelerated capacity expansion plans and increased long‑term agreements.
Management reiterated confidence in the AI chip boom, stating, "Our first‑quarter total net sales were €8.8 billion, within our guidance, and gross margin came in at 53.0 %, at the high end of our guidance." The company also raised its full‑year 2026 revenue outlook to €36 billion–€40 billion, up from €34 billion–€39 billion, and reaffirmed a gross‑margin guidance of 51 %–53 %. The guidance lift signals management’s belief that the mix shift toward EUV will continue to strengthen profitability, while the bandwidth in the guidance reflects uncertainty around ongoing export‑control discussions.
Market reaction was mixed. Shares fell 1.7 % in Amsterdam and around 5 % in the U.S. after the release, despite an initial uptick, as investors weighed the raised guidance against valuation concerns and the impact of export controls on China sales. Some analysts noted that the guidance midpoint aligns closely with prior estimates, limiting upside potential, while others highlighted the company’s strong recurring revenue and AI‑driven demand as positive catalysts.
The results and raised outlook reinforce ASML’s dominant position in the semiconductor equipment market and its ability to capitalize on the AI chip boom, while also highlighting the ongoing geopolitical headwinds that could temper growth in the near term.
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