ASM: Third-Quarter Revenue Up 45%, 2027 Revenue Expected Above €5.7 Billion

Revenue of €1,159 Million and Adjusted Operating Margin of 33.4%

In the third quarter of 2026, revenue reached €1,159.4 million, compared with €800.0 million a year earlier and €1,003.1 million in the second quarter. Growth reached 45% on a reported basis and 44% at constant exchange rates, a level within the upper range announced by the group. According to ASM, advanced logic and foundry were the main driver, with a solid initial contribution from investments in the 1.4 nm node. Sales to the memory industry also advanced, notably in DRAM related to HBM, while mature logic and foundry, primarily driven by the Chinese market, remained robust. Gross margin remained stable at 52.0%, compared with 51.9% in the third quarter of 2025 and in the second quarter of 2026. Adjusted operating margin increased from 30.9% to 33.4% year-over-year, with adjusted operating income of €386.7 million versus €247.5 million, representing a 56% increase according to the chief executive officer. Adjusted net income rose by €109 million to €315.4 million. Under IFRS standards, net income came to €308.1 million, compared with €384.1 million in the third quarter of 2025 and €285.4 million in the previous quarter.

AI Demand Hampered by Tight Supply Chains

"This performance reflects solid execution by our teams in a context of constrained supply chains," said Hichem M'Saad, ASM's chief executive officer. He emphasized that the deployment of AI infrastructure is generating significant capacity needs in the industry, particularly on the most advanced nodes, and that customers are seeking to rapidly increase their production. For the fourth quarter of 2026, the group anticipates revenue of €1,230 million, plus or minus 5%, at constant exchange rates, versus a consensus of €1.20 billion. ASM clarifies that it is working with its suppliers and customers to support the expected increase in deliveries under increasingly constrained supply conditions. For the full 2026 fiscal year, revenue should grow approximately 35% at constant exchange rates, and equipment revenue by more than 40%. The quarter was also marked by the launch of XP8 Vertos Flowable Carbon, presented as the first flowable carbon film technology in PECVD, already used in high-volume production.

Above €5.7 Billion Targeted for 2027 and New €300 Million Share Repurchase

For 2027, ASM forecasts revenue above 5.7 billion euros at constant exchange rates, compared with 3,173.2 million euros achieved in fiscal year 2025 (results published on March 18, 2026). This level corresponds to the revenue target set for 2030 at the 2025 investor day, which would thus be reached three years ahead of schedule. Advanced logic and foundry should remain the primary growth driver, supported by 2 nm and 1.4 nm. The group indicates that its addressable market at the 1.4 nm node shows double-digit growth compared with 2 nm, with higher market share. It also anticipates strong growth in memory, relative stability in mature logic and foundry absent significant regulatory changes, and strengthening recovery in power, analog and wafer segments. Regarding shareholder returns, the €150 million share repurchase program announced on March 3, 2026 was executed between August 10 and September 14, 2026: 185,522 shares were repurchased at an average price of €808.53. The board authorized a new program that could reach €300 million, with terms to be specified before its launch. The most structural element of the publication remains the forecast of revenue above 5.7 billion euros for 2027.