ASML NASDAQ: ASML reported first-quarter 2026 net sales of EUR 8.8 billion, with results landing within the company’s guidance range. Roger Dassen, ASML’s EVP and CFO, said installed base revenue contributed EUR 2.5 billion during the quarter, coming in “a little bit above the guidance.”
Gross margin for Q1 was 53%, which Dassen said was “at the high end” of the company’s outlook. He attributed the strength to installed base performance and the mix within that business, noting that some installed base components “commanded quite some strong gross margins.” Net income for the quarter totaled EUR 2.8 billion, according to Dassen.
Q2 2026 guidance
For the second quarter of 2026, Dassen guided for total net sales of EUR 8.4 billion to EUR 9.0 billion. The company again expects installed base revenue of EUR 2.5 billion.
ASML’s gross margin expectation for Q2 is 51% to 52%, Dassen said.
Market demand supported by AI infrastructure spending
Christophe, speaking on the call about the market environment, said semiconductor industry growth continues to “solidify,” driven by investment in AI infrastructure. He said the resulting demand for advanced memory and advanced logic is expected to outstrip supply “for the foreseeable future,” creating what he described as a constraint that affects end markets including “AI to mobile and PC.”
He added that customers are being pushed to expand capacity. In memory, he said customers have indicated they are “sold out for 2026” and that supply constraints are expected to last beyond 2026. In advanced logic, he said customers are building capacity across multiple nodes while continuing to ramp 2 nm to address AI-related products.
Christophe also said ASML is seeing memory and logic customers increase capital expenditures and attempt to accelerate capacity ramps in 2026 and beyond. He described demand as being supported by “long-term commitment” from customers’ end clients. He added that both DRAM and advanced logic customers are increasing adoption of EUV as well as immersion lithography, translating into higher lithography intensity and higher lithography demand for ASML.
Capacity plans: EUV and Deep UV output targets
Asked about how ASML plans to support demand, Dassen said the company is working “fully aligned with customers” through a combination of new system shipments, system performance upgrades, and installed base products.
On internal capacity, Dassen said ASML believes it can drive EUV Low NA output “of at least 60 systems” in 2026. He also addressed Deep UV immersion, saying ASML had “a bit of a slow start” after forecasting significantly lower immersion demand during the prior year. He said that trend has reversed and that, despite the slow start, ASML still expects 2026 immersion unit sales to come “pretty close” to last year’s levels.
Looking to 2027, Dassen said ASML is increasing move rates quarter over quarter and expects it can reach EUV Low NA output of “at least 80” units if customer demand supports it. He added that the company is also working to keep the non-EUV business in line with customer needs “for all of their nodes.”
Full-year 2026 outlook and margin expectations
Dassen described 2026 as “panning out very nicely” and said the company is narrowing and raising its expected full-year range to EUR 36 billion to EUR 40 billion in net sales. He said EUV is expected to be strong in 2026, including contributions from both Low NA and High NA systems.
On non-EUV, Dassen said the company previously expected the segment to be flat year over year, but is now seeing increased demand and expects higher non-EUV revenue. He said the dry business and application business are performing well and reiterated the improved outlook for non-EUV compared with “a couple of months ago.”
Dassen also pointed to “strong growth” in the installed base business, calling it a fast way for customers to increase capacity. Within the EUR 36 billion to EUR 40 billion revenue outlook, he said ASML believes it can “accommodate potential outcomes of the export control discussions that are currently ongoing.”
For full-year 2026 gross margin, Dassen said ASML is maintaining its expectation of 51% to 53%.
Technology roadmap: higher EUV throughput and High NA progress
On the technology roadmap, Christophe said ASML continues to “execute very nicely” and highlighted updates shared around the SPIE conference. He pointed to ASML’s demonstration of a 1,000 W EUV source, which he said supports the “extendibility” of Low NA EUV “for many, many years.” He added that this would enable Low NA tools to run at 330 wafers per hour in 2031, a “major step up” versus current levels.
Christophe also said ASML has increased throughput on its NXE:3800E system to 220 to 230 wafers per hour, up from prior levels, which he said helps with near-term capacity. He said the company is also increasing the specification of its next system, the NXE:3800F, to 260 wafers per hour from 250 wafers per hour, which he said will support capacity needs “around 2028.”
Discussing High NA, Christophe said customers are now speaking more openly about the platform and have highlighted benefits including significant mask reductions. He said customers described moving “from three to one masks for EUV using High NA,” and also cited comments that process steps could be reduced “from 100 to 10.”
He said ASML is seeing progress in the High NA ecosystem, including input from resist partners suggesting High NA can be extended in logic to 18 nm line-and-space pitch and in memory to 28 nm hole size. Christophe added that tool maturity remains important and said ASML is seeing improvements in availability, “more wafer per day,” and “more wafer out,” as customers begin testing High NA on real products.
About ASML NASDAQ: ASML
ASML Holding N.V. NASDAQ: ASML is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.
ASML's product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.
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