ASML: €8.8 Billion in Revenue for Q1, Annual Guidance Raised to €40 Billion
ASML reports a strong first quarter in 2026 with revenues of €8.8 billion and a gross margin of 53%, in line with expectations. The Dutch lithography equipment manufacturer has raised its annual guidance to €36-40 billion, driven by sustained customer demand in the semiconductor sector. However, CEO Christophe Fouquet notes that this trajectory depends on 'resolutions of issues related to export controls'.
Q1 2026 Performance Overview
ASML recorded a total net revenue of €8.8 billion in the first quarter of 2026, within its guidance range. The gross margin stood at 53.0%, at the high end of the forecast range. The net income for the quarter reached €2.8 billion. These results come at a time when the semiconductor industry is experiencing acceleration, particularly due to infrastructure investments related to artificial intelligence. According to the CEO, the demand for chips exceeds the available supply, prompting ASML's clients to accelerate their capacity expansion plans for 2026 and beyond.
Order Book Growth and Customer Response
ASML's order book has significantly increased, fueled by client reactions to this demand dynamic. In recent months, clients have raised their short and medium-term demand expectations for the supplier's products. ASML is responding to this acceleration with a combination of new system deliveries and performance upgrades of its installed base. The CEO states that ASML is 'closely aligned with its clients to support their demand'. This dynamic underpins the expectation that 2026 will be a growth year for all of the company's activities.
Revised 2026 Guidance and Future Projections
ASML has raised its annual guidance for 2026, projecting total net revenues between €36 billion and €40 billion, with a gross margin ranging from 51% to 53%. For the second quarter of 2026, the company anticipates revenues between €8.4 billion and €9.0 billion, with a gross margin between 51% and 52%. The 2026 guidance also covers research and development costs around €1.2 billion and general and administrative expenses around €0.3 billion. The CEO specifies that 'the breadth of the guidance range accommodates potential outcomes from ongoing discussions around export controls'. Additionally, ASML plans a 17% increase in the total dividend for the fiscal year 2025, raised to €7.50 per ordinary share. The company also purchased €1.1 billion of shares during the first quarter as part of its 2026-2028 buyback program.
