ASML (ASML) Q1 2026 Investor Call earnings summary

Executive summary

• Q1 2026 net sales reached €8.8 billion, with net income of €2.8 billion and EPS of €7.15, reflecting strong demand driven by AI infrastructure investments and advanced logic and memory processes.

• Gross margin for Q1 2026 was 53.0%, at the high end of guidance.

• Order intake remains strong, with customers accelerating capacity expansion plans.

• Lithography innovation continues, with a versatile portfolio supporting 3D integration and EUV scaling.

• Continued commitment to shareholder returns through dividends and share buybacks.

Financial highlights

• Q1 2026 net system sales were €6.3 billion, with EUV system sales over €4.1 billion and non-EUV at €2.1 billion; Installed Base Management sales reached €2.5 billion.

• Gross margin was 53%, operating margin 36%, and net income margin 31.4%.

• Free cash flow was -€2.6 billion, mainly due to timing of down payments.

• Cash and short-term investments stood at €8.4 billion at quarter end.

• Sequentially, Q1 2026 net sales decreased from €9.7 billion in Q4 2025, but gross margin improved from 52.2% to 53.0%.

Outlook and guidance

• Q2 2026 net sales expected between €8.4 billion and €9.0 billion; installed base management sales around €2.5 billion.

• Q2 gross margin expected between 51% and 52%; R&D costs projected at €1.2 billion, SG&A at €0.3 billion.

• FY 2026 net sales guidance is €36–40 billion, with gross margin between 51% and 53%, and revenue weighted to the second half.

• EUV, non-EUV, and installed base management revenues are all forecast to grow significantly.

• Guidance accommodates potential export control outcomes.