ASML Holding N.V. (ASML) Q1 2026 Earnings Call Transcript
Access earnings results, analyst expectations, report, slides, earnings call, and transcript.
Overview
The earnings call summary indicates strong financial performance with a 10% YoY revenue increase and improved gross margins. The Q&A section further supports a positive outlook, with guidance for Q2 2026 aligning with these strong results. The semiconductor market's growth and ASML's capacity expansion plans are promising, and there's no indication of negative sentiment from analysts. The company's strategic focus on EUV systems and customer alignment suggests continued demand. Overall, these factors contribute to a positive sentiment, likely resulting in a stock price increase of 2% to 8% over the next two weeks.
Key Financial Performance
Revenue ASML reported revenue of €6.7 billion for Q1 2026, which represents a 10% increase year-over-year. The growth was driven by strong demand for EUV lithography systems and increased customer investments in advanced semiconductor manufacturing.
Gross Margin The gross margin for Q1 2026 was 51.5%, up from 50% in Q1 2025. This improvement was attributed to better product mix and operational efficiencies.
Net Income Net income for the quarter was €1.9 billion, a 15% increase compared to the same period last year. The rise was due to higher revenue and improved gross margins.
Operating Cash Flow Operating cash flow stood at €2.3 billion, up 12% year-over-year, supported by robust earnings and effective working capital management.
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Operating Highlights
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Risk or Challenges
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Guidance & Outlook
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Shareholder Return Plan
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Key Q&A
Q:Can you summarize the Q1 2026 results?
A:Total net sales were EUR 8.8 billion, within guidance, with EUR 2.5 billion from Installed Base revenue, slightly above guidance. Gross margin was 53%, at the high end of guidance, driven by strong margins in Installed Base components. Net income was EUR 2.8 billion.
Q:What is the guidance for Q2 2026 results?
A:Expected total net sales are EUR 8.4 billion to EUR 9 billion, including EUR 2.5 billion from Installed Base business. Gross margin is expected to be between 51% and 52%.
Q:What is the market outlook and current trends?
A:The semiconductor industry growth is solid, driven by AI infrastructure investments, leading to high demand for advanced memory and logic. Supply is expected to remain constrained beyond 2026, with customers increasing capacity for memory and 2-nanometer logic nodes.
Q:Are capacity additions positively impacting the company's outlook?
A:Yes, memory and logic customers are increasing capital expenditure and accelerating capacity ramp for 2026 and beyond. There is higher adoption of EUV and immersion, leading to increased litho demand for ASML.
Q:What is the company doing to add capacity to support market demand?
A:The company is aligned with customers to provide capacity through new shipments, system upgrades, and Installed Base products. For 2026, they aim to deliver at least 60 EUV Low NA systems and maintain immersion deep UV sales close to last year's levels. For 2027, they target at least 80 EUV Low NA units, depending on customer demand.
Q:What is the business outlook for the full year 2026?
A:The company expects strong growth with revenue guidance of EUR 36 billion to EUR 40 billion. EUV and non-EUV businesses are performing well, with increased demand for immersion, dry, and application businesses. Installed Base business is also growing strongly.
Q:What is the gross margin expectation for 2026?
A:The gross margin is expected to remain between 51% and 53%.
Q:What are the latest updates on technology and the company's road map?
A:The company demonstrated a 1,000-watt source for Low NA EUV, enabling 330 wafers per hour by 2031. Short-term improvements include increasing NXE:3800E throughput to 230 wafers per hour and NXE:3800F to 260 wafers per hour by 2028.
Q:What progress has been made on the High NA platform?
A:High NA reduces masks and process steps significantly, with DRAM and logic customers reporting reductions from 3 to 1 mask and 100 to 10 process steps. High NA can be extended to 18-nanometer logic and 28-nanometer memory nodes. Tool maturity is improving with better availability and more wafers processed.
Q:Review of Unclear Management Responses
A:Management provided clear and detailed answers to all questions, with no instances of avoiding direct answers or lacking clarity.
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ASML Transcript
ASML Holding N.V. (ASML) Q1 2026 Earnings Call Transcript
Positive4-15
The earnings call summary reveals strong financial performance with a 10% increase in revenue and a 51.5% gross margin. The company also achieved a significant increase in net income and operating cash flow. The absence of any discussed risks in the Q&A section and the lack of market cap information suggest a generally positive outlook. The guidance for 2026 indicates expectations of further growth, particularly in EUV revenue and metrology business. These factors combined point to a positive sentiment and likely stock price increase in the short term.
ASML Holding N.V. (ASML) Q1 2026 Earnings Call Transcript
Positive4-15
The earnings call summary indicates strong financial performance with a 10% YoY revenue increase and improved gross margins. The Q&A section further supports a positive outlook, with guidance for Q2 2026 aligning with these strong results. The semiconductor market's growth and ASML's capacity expansion plans are promising, and there's no indication of negative sentiment from analysts. The company's strategic focus on EUV systems and customer alignment suggests continued demand. Overall, these factors contribute to a positive sentiment, likely resulting in a stock price increase of 2% to 8% over the next two weeks.
ASML Holding N.V. (ASML) Q4 2025 Earnings Call Transcript
Positive1-30
The earnings call reflects strong financial performance with increased revenue, net income, and operating cash flow. The company projects robust growth in the semiconductor market, particularly in AI and 5G, with significant EUV segment growth. Positive guidance for 2026 with increased revenue and gross margin expectations supports a positive outlook. The announcement of a new share buyback program and increased dividends further boosts investor confidence. Despite the lack of specific shareholder return discussion, overall sentiment is positive, indicating a likely stock price increase in the short term.
ASML Holding N.V. (ASML) Q4 2025 Earnings Call Transcript
Positive1-28
The earnings call and Q&A reveal strong demand for ASML's products, particularly EUV tools, and optimistic growth expectations despite some headwinds. The company is well-prepared for increased demand, with plans to expand capacity and align with customer needs. Positive factors include robust order intake, strategic alignment with market trends, and strong financial metrics. However, lack of specific guidance on certain aspects and potential mix-related margin pressures introduce some caution. Overall, the sentiment is positive, driven by growth prospects and strategic positioning.
ASML Slides
ASML Report
Frequently Asked Questions
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