ASML (ASML) Q1 2026 Investor Call earnings summary

Executive summary

• Q1 2026 net sales reached EUR 8.8 billion with net income of EUR 2.8 billion, reflecting strong demand in the semiconductor industry driven by AI adoption and advanced logic and memory processes.

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

• Demand for advanced logic and memory chips, fueled by AI infrastructure investments, is outpacing supply, leading to aggressive capacity expansion by customers.

• Order intake remains robust, with customers increasing capital expenditures and long-term agreements supporting expansion.

• Lithography remains central to innovation, with a versatile portfolio supporting 3D integration and EUV technology scaling.

Financial highlights

• Q1 2026 net system sales were EUR 6.3 billion, with over EUR 4.1 billion from EUV and EUR 2.1 billion from non-EUV systems.

• Installed Base Management sales were EUR 2.5 billion.

• Q1 2026 gross margin was 53.0%, operating margin 36.0%, and net income margin 31.4%.

• EPS for Q1 2026 was EUR 7.15.

• Q1 free cash flow was -EUR 2.6 billion, mainly due to timing of down payments.

Outlook and guidance

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

• Q2 gross margin expected between 51% and 52%; R&D and SG&A expenses to remain stable.

• 2026 revenue guidance updated to EUR 36–40 billion, with gross margin expected between 51% and 53%, and revenue weighted to the second half.

• Guidance accommodates potential export control outcomes.

• Long-term opportunity for 2030 annual revenue between EUR 44 billion and EUR 60 billion, gross margin 56%–60%.