Key Highlights
- Q1 net earnings reached €2.76 billion with revenues of €8.77 billion, surpassing Wall Street expectations
- Full-year 2026 revenue forecast increased to €36–€40 billion from prior €34–€39 billion range
- Company CEO highlights that semiconductor demand is exceeding available supply capacity
- Plans call for delivering 60 low-NA EUV systems during 2026, representing a 25% year-over-year increase
- Ongoing geopolitical tensions over China sales create uncertainty as US lawmakers consider tighter export controls
The Dutch semiconductor equipment giant delivered impressive first-quarter performance and upgraded its annual projections, signaling robust market conditions fueled by artificial intelligence infrastructure investments.
First-quarter net earnings totaled €2.76 billion with revenues reaching €8.77 billion. Wall Street analysts had projected earnings of €2.55 billion on revenues of €8.63 billion, according to FactSet data.
The Netherlands-based manufacturer has increased its 2026 revenue projection to a range of €36 billion to €40 billion. This represents an upgrade from the company’s earlier forecast of €34 billion to €39 billion, marking approximately a 4% boost at the middle of the range.
Chief Executive Christophe Fouquet emphasized that customer demand is outstripping production capabilities. “We’re seeing our customers speed up their capacity expansion strategies for 2026 and the years ahead, backed by long-term commitments from their own clients,” Fouquet explained.
ASML maintains a virtual monopoly in extreme ultraviolet lithography equipment — specialized machinery essential for manufacturing cutting-edge semiconductors. Individual systems can command prices approaching $400 million.
Increased Tool Shipments Planned for 2026
Chief Financial Officer Roger Dassen revealed that the company projects shipping 60 units of its popular low-NA EUV systems throughout this year. This figure represents a 25% jump compared to 2025 shipments. Dassen further noted the organization will possess the capability to deliver 80 units in 2027.
TSMC has recently unveiled substantial capital expenditure plans for expanding manufacturing capabilities, boosting investor confidence in ASML’s prospects. Industry peers Samsung and SK Hynix are similarly committing significant resources to memory chip production facilities.
Shares of ASML have climbed approximately 40% year-to-date. The company’s American depositary receipts edged up 0.7% during Tuesday’s after-hours session.
Management announced it will discontinue publishing quarterly bookings figures, eliminating a metric that market participants had historically relied upon to gauge business momentum.
Chinese Market Presence Remains Under Scrutiny
A key area of investor focus involves the company’s commercial relationship with China. Bipartisan lawmakers in the US House of Representatives have recently put forward the MATCH Act, legislation aimed at imposing additional restrictions on semiconductor equipment exports to China.
ASML projects that Chinese customers will comprise 20% of its 2026 revenues. Notably, the company made a comparable prediction for 2025 but ultimately generated roughly one-third of that year’s total revenue from the Chinese market.
Jefferies analyst Janardan Menon observed that the improved guidance seems partially attributable to immersion lithography equipment, a category where management had previously anticipated declining sales due to reduced Chinese purchases. He suggested this development “may partly indicate MATCH Act-driven pre-emptive purchasing” as Chinese firms attempt to secure equipment ahead of potential new export limitations.
CFO Dassen indicated the revised forecast incorporates “possible scenarios from the export control negotiations currently underway.”
ASML shares showed modest declines in Wednesday’s pre-market activity notwithstanding the quarterly earnings outperformance.
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