ASML Posts Q1 Beat: CEO Predicts 2026 Will Be Another "Growth Year"

 

ASML Holding NV (ASML) reported first-quarter 2026 results on Wednesday that broadly exceeded analyst expectations. Despite a cautious Q2 outlook, the lithography leader raised its full-year guidance, signaling sustained momentum in the semiconductor equipment sector.

 

The company posted Q1 revenue of €8.77 billion, surpassing the institutional estimate of €8.55 billion. Gross margin reached 53%, beating the 52.2% forecast, while net profit hit €2.76 billion—well ahead of the projected €2.56 billion.

 

For the full year 2026, ASML raised its total net sales guidance to between €36 billion and €40 billion, up from its previous range of €34 billion to €39 billion. CFO Roger Dassen noted that the company has already factored the uncertainties regarding export controls into its 2026 projections.

Capacity Expansion Accelerates Amid AI Demand

As the sole provider of advanced lithography machines required for the world’s most sophisticated chips—including Nvidia’s AI data center processors—ASML is considered a primary barometer for global semiconductor demand.

 

CEO Christophe Fouquet stated that chip demand is currently outstripping supply. "Our customers are accelerating capacity expansion plans for 2026 and beyond," Fouquet remarked, adding that short- and medium-term demand expectations have increased over the past few months.

 

This bullish sentiment is supported by strong results from major customers like TSMC, which reported record Q1 revenue last week. Furthermore, the persistent shortage of memory chips—critical for AI systems—is driving massive investment from South Korean giants Samsung and SK Hynix.

Market Dynamics and Regional Performance

The shift toward memory production was evident in ASML’s Q1 results, with memory-related sales accounting for 51% of new equipment revenue, up from 30% in the previous quarter. Geographically, South Korean customers represented 45% of sales, followed by Taiwan at 23%.

 

Although ASML’s Q2 sales outlook of €8.4 billion to €9 billion was slightly softer than the market's €9.07 billion estimate, the stock proved resilient. After an initial 4% drop in overnight trading, shares recovered quickly and were last seen trading up 0.67%.