Key Takeaways
- First quarter net income reached €2.76 billion with revenue of €8.77 billion, surpassing Wall Street expectations
- Full-year 2026 revenue forecast increased to €36–€40 billion from previous €34–€39 billion range
- Chief executive reports semiconductor demand exceeding manufacturing capacity, with clients fast-tracking expansion initiatives
- Company targets delivery of 60 low-NA EUV systems in 2026, representing 25% growth versus 2025
- Chinese market dependency poses regulatory uncertainty amid proposed US export restriction legislation
The Dutch semiconductor equipment manufacturer delivered impressive first-quarter results and enhanced its annual projections, citing accelerating demand for advanced chipmaking machinery fueled by artificial intelligence infrastructure investments.
First-quarter net income totaled €2.76 billion against revenue of €8.77 billion. Wall Street consensus anticipated €2.55 billion in earnings on €8.63 billion in sales, according to FactSet data.
The Netherlands-based enterprise has revised its 2026 sales forecast to a range of €36 billion to €40 billion. This represents an upgrade from the prior €34 billion to €39 billion projection, marking approximately 4% growth at the median.
Chief Executive Christophe Fouquet indicated that market demand currently outstrips production capability. “We’re seeing our customers accelerate their capacity expansion plans for 2026 and beyond, underpinned by long-term agreements with their customers,” Fouquet stated.
ASML maintains a virtual monopoly in extreme ultraviolet lithography equipment — specialized machinery essential for manufacturing cutting-edge semiconductors. Individual systems carry price tags reaching $400 million.
2026 Tool Delivery Projections Rise
Chief Financial Officer Roger Dassen indicated the company anticipates delivering 60 units of its flagship low-NA EUV systems this year. This represents a 25% increase compared to 2025 shipments. Dassen further noted production capacity will support 80 unit deliveries in 2027.
TSMC has recently unveiled substantial capital expenditures for manufacturing expansion, bolstering optimism surrounding ASML’s business outlook. Memory chip producers Samsung and SK Hynix are similarly committing significant capital to production capabilities.
Shares of ASML have appreciated approximately 40% year-to-date. The company’s American depositary receipts gained 0.7% during Tuesday’s extended trading session.
Management announced it will discontinue publishing quarterly booking figures, eliminating a metric investors historically monitored to assess business momentum.
Chinese Market Exposure Under Scrutiny
A key consideration involves the company’s commercial relationship with China. Bipartisan members of the US House of Representatives have recently proposed the MATCH Act, legislation that would impose additional restrictions on semiconductor equipment exports to China.
ASML projects China will represent 20% of 2026 revenue. Notably, the company issued comparable estimates for 2025 but ultimately generated approximately one-third of annual revenue from Chinese customers.
Jefferies analyst Janardan Menon observed the enhanced guidance appears partially attributable to immersion lithography equipment, a segment where management had previously anticipated contraction due to declining Chinese demand. Menon suggested this “could partially reflect MATCH Act-related accelerated buying” as Chinese firms stockpile equipment ahead of potential regulatory implementation.
CFO Dassen confirmed the updated guidance incorporates “potential outcomes of the export control discussions that are currently ongoing.”
Shares showed modest pre-market weakness Wednesday morning despite the positive quarterly performance.
