Key Takeaways
- Q1 net earnings reached €2.76 billion with revenue of €8.77 billion, surpassing Wall Street forecasts
- Full-year 2026 revenue outlook increased to €36–€40 billion from prior €34–€39 billion range
- Chief executive highlights chip demand exceeding supply as customers fast-track capacity buildouts
- Company targeting 60 low-NA EUV system shipments in 2026, representing 25% growth versus 2025
- Chinese market exposure continues as regulatory concern amid potential new U.S. export restrictions
ASML delivered robust first-quarter performance and enhanced its annual projections, signaling accelerating momentum in semiconductor manufacturing equipment driven by artificial intelligence infrastructure investments.
The Netherlands-based company posted first-quarter net earnings of €2.76 billion against revenue totaling €8.77 billion. Wall Street consensus estimates had projected €2.55 billion in net profit alongside €8.63 billion in revenue, according to FactSet data.
Management now forecasts 2026 revenue ranging from €36 billion to €40 billion. This marks an upward revision from the company’s earlier projection of €34 billion to €39 billion, representing approximately 4% growth at the midpoint.
Chief Executive Christophe Fouquet emphasized that customer demand continues outstripping available supply. “Our customers are accelerating their capacity expansion plans for 2026 and beyond, supported by long-term agreements with their customers,” Fouquet stated.
ASML maintains virtual monopoly status in extreme ultraviolet lithography technology — specialized machinery essential for manufacturing cutting-edge semiconductors. Individual systems can command prices approaching $400 million.
Equipment Shipment Volume Climbing
Chief Financial Officer Roger Dassen indicated the company anticipates delivering 60 units of its high-demand low-NA EUV systems throughout this year. This figure represents a 25% increase compared to 2025 shipment volumes. Dassen further noted manufacturing capacity will support 80 unit shipments in 2027.
TSMC recently unveiled substantial capital investments targeting expanded production capabilities, generating positive momentum for ASML shares. Memory chipmakers Samsung and SK Hynix are similarly deploying significant capital toward manufacturing infrastructure.
ASML shares have appreciated approximately 40% year-to-date. American depositary receipts advanced 0.7% during Tuesday’s extended trading session.
Management announced discontinuation of quarterly bookings disclosure, eliminating a metric investors historically utilized to gauge business momentum.
Chinese Market Remains Under Scrutiny
A continuing concern involves ASML’s business concentration in China. Bipartisan U.S. congressional representatives recently unveiled the MATCH Act, proposed legislation targeting additional limitations on semiconductor equipment exports to China.
ASML projects Chinese revenue will comprise 20% of 2026 total sales. Notably, the company issued comparable guidance for 2025 but ultimately generated roughly one-third of annual revenue from Chinese customers.
Jefferies analyst Janardan Menon observed the upgraded guidance appears partially attributable to immersion lithography systems, a segment where management previously anticipated decline reflecting reduced Chinese demand. Menon suggested this development “could partially reflect MATCH Act-related accelerated buying” as Chinese firms attempt securing equipment inventory ahead of potential regulatory implementation.
CFO Dassen noted the revised guidance incorporates “potential outcomes of the export control discussions that are currently ongoing.”
ASML shares showed modest weakness in Wednesday pre-market activity despite the earnings outperformance.
