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ASML posted Q1 EPS of EUR 7.15, up 19% Y/Y, as net sales climbed 13% to EUR 8.77B.
ASML logged EUR 6.3B in system sales, including EUR 4.1B from EUV and two High-NA systems shipped.
ASML raised 2026 sales to EUR 36B-40B, citing AI-led chip demand and customer capacity plans.
ASML Holding (ASML - Free Report) posted first-quarter 2026 earnings of €7.15 per share, up 19.2% year over year. Converted to USD, ASML’s first-quarter 2026 earnings came at $8.37 per share, which beat the Zacks Consensus Estimates by 8.4%.
ASML beat earnings estimates in two of the trailing four quarters, while missing twice, with the average negative surprise being 4.5%.
Total net sales were €8.77 billion, which increased 13.2% from the year-ago quarter and came within the company’s prior outlook range. Converted to USD, ASML’s first-quarter 2026 revenues were $10.3 billion, which beat the Zacks Consensus Estimates by 0.5%.
ASML’s Q1 Financials in Details
ASML’s Net system sales totaled €6.3 billion, supported by more than €4.1 billion from EUV systems, which included sales of two High-NA systems, and more than €2.1 billion from non-EUV systems.
Demand was broadly balanced across customer categories. Management said net system sales were almost evenly split between Logic at 49% and Memory at 51%, highlighting the breadth of lithography demand across advanced nodes. In unit terms, ASML sold 79 lithography systems in the period, consisting of 67 new systems and 12 used systems, providing another indicator of steady shipment activity during the quarter.
ASML Holding N.V. Price, Consensus and EPS Surprise
Installed Base Management sales came in at €2.5 billion, slightly above guidance, underscoring steady service and upgrade activity tied to a growing installed base.
Management pointed to a strengthening semiconductor growth outlook, supported by ongoing AI-related infrastructure investments. ASML said demand for chips is outpacing supply, pushing customers to accelerate capacity expansion plans for 2026 and beyond.
On the earnings call, leadership highlighted that both Memory and Logic customers are increasing capital spending and moving faster on expansion, supported by long-term agreements with their own customers. Within Memory, management noted that many customers are effectively sold out for the remainder of the year and expect supply tightness to persist beyond 2026, even as they add significant capacity.
ASML Profitability Holds Up With Tight Cost Execution
Gross margin came in at 53%, and management attributed the outperformance versus the midpoint of guidance primarily to high-margin content within the installed base business. Operating discipline also remained evident as spending tracked expectations.
Operating margin was 36%. R&D costs were about €1.2 billion, and SG&A expenses were approximately €0.3 billion in the first quarter.
ASML’s effective tax rate was 17.1% for the quarter, aligning closely with the company’s expectation for an annualized effective tax rate of around 17% for 2026. ASML’s net income represented 31.4% of total net sales.
ASML Holding Cash Flow Reflects Timing, Returns Stay Active
ASML ended the quarter with €8.38 billion in cash, cash equivalents and short-term investments compared to the fourth quarter of 2025’s cash, cash equivalents and short-term investments of $13.3 billion.
Management said free cash flow was negative €2.6 billion in the period, largely due to the timing of down payments.
Shareholder returns remained a key element of the capital allocation strategy. During the first quarter, ASML purchased around €1.1 billion worth of shares under its 2026-2028 share buyback program.
ASML Outlook Lifts 2026 Sales Range on Demand Momentum
For the second quarter of 2026, ASML expects total net sales between €8.4 billion and €9.0 billion. The Zacks Consensus Estimate for ASML’s second-quarter 2026 revenues have been pegged at $10.48 billion, indicating year-over-year growth of 20%.
ASML projects its gross margin between 51% and 52%. The company also expects Installed Base Management sales of around €2.5 billion, with R&D costs around €1.2 billion and SG&A costs around €0.3 billion.
The Zacks Consensus Estimate for ASML’s second-quarter 2026 earnings has been pegged at 7.92%, indicating year-over-year growth of 74%.
For the full year, ASML raised and narrowed its revenue outlook, now expecting 2026 total net sales between €36 billion and €40 billion.
The Zacks Consensus Estimate for ASML’s 2026 revenues has been pegged at $43.99 billion, indicating growth of 19% year over year.
ASML maintained a gross margin expectation of 51% to 53%. Management added that the guidance range is intended to accommodate potential outcomes tied to ongoing discussions around export controls.
The Zacks Consensus Estimate for ASML’s 2026 earnings has been pegged at $34.46, indicating year-over-year growth of 23.3%.
ASML also reiterated its plan to declare a total dividend for 2025 of €7.50 per ordinary share, implying a 17% increase compared with 2024, and outlined a proposed final dividend of €2.70 per share after recognizing interim dividends already paid.
Shares of Arista Networks have gained 17.8% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.53 per share, up by a penny over the past 30 days, indicating an increase of 18.5% year over year.
Shares of Advanced Energy have gained 78.8% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, down a penny over the past 60 days, indicating a rise of 29.8% year over year.
Applied Materials shares have surged 53.4% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $11.10 per share, up 7 cents over the past 30 days, indicating an increase of 17.8% year over year.
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ASML Holding Q1 Earnings Beat Estimates, Revenues Rise Y/Y
Key Takeaways
ASML Holding (ASML - Free Report) posted first-quarter 2026 earnings of €7.15 per share, up 19.2% year over year. Converted to USD, ASML’s first-quarter 2026 earnings came at $8.37 per share, which beat the Zacks Consensus Estimates by 8.4%.
ASML beat earnings estimates in two of the trailing four quarters, while missing twice, with the average negative surprise being 4.5%.
Total net sales were €8.77 billion, which increased 13.2% from the year-ago quarter and came within the company’s prior outlook range. Converted to USD, ASML’s first-quarter 2026 revenues were $10.3 billion, which beat the Zacks Consensus Estimates by 0.5%.
ASML’s Q1 Financials in Details
ASML’s Net system sales totaled €6.3 billion, supported by more than €4.1 billion from EUV systems, which included sales of two High-NA systems, and more than €2.1 billion from non-EUV systems.
Demand was broadly balanced across customer categories. Management said net system sales were almost evenly split between Logic at 49% and Memory at 51%, highlighting the breadth of lithography demand across advanced nodes. In unit terms, ASML sold 79 lithography systems in the period, consisting of 67 new systems and 12 used systems, providing another indicator of steady shipment activity during the quarter.
ASML Holding N.V. Price, Consensus and EPS Surprise
ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote
Installed Base Management sales came in at €2.5 billion, slightly above guidance, underscoring steady service and upgrade activity tied to a growing installed base.
Management pointed to a strengthening semiconductor growth outlook, supported by ongoing AI-related infrastructure investments. ASML said demand for chips is outpacing supply, pushing customers to accelerate capacity expansion plans for 2026 and beyond.
On the earnings call, leadership highlighted that both Memory and Logic customers are increasing capital spending and moving faster on expansion, supported by long-term agreements with their own customers. Within Memory, management noted that many customers are effectively sold out for the remainder of the year and expect supply tightness to persist beyond 2026, even as they add significant capacity.
ASML Profitability Holds Up With Tight Cost Execution
Gross margin came in at 53%, and management attributed the outperformance versus the midpoint of guidance primarily to high-margin content within the installed base business. Operating discipline also remained evident as spending tracked expectations.
Operating margin was 36%. R&D costs were about €1.2 billion, and SG&A expenses were approximately €0.3 billion in the first quarter.
ASML’s effective tax rate was 17.1% for the quarter, aligning closely with the company’s expectation for an annualized effective tax rate of around 17% for 2026. ASML’s net income represented 31.4% of total net sales.
ASML Holding Cash Flow Reflects Timing, Returns Stay Active
ASML ended the quarter with €8.38 billion in cash, cash equivalents and short-term investments compared to the fourth quarter of 2025’s cash, cash equivalents and short-term investments of $13.3 billion.
Management said free cash flow was negative €2.6 billion in the period, largely due to the timing of down payments.
Shareholder returns remained a key element of the capital allocation strategy. During the first quarter, ASML purchased around €1.1 billion worth of shares under its 2026-2028 share buyback program.
ASML Outlook Lifts 2026 Sales Range on Demand Momentum
For the second quarter of 2026, ASML expects total net sales between €8.4 billion and €9.0 billion. The Zacks Consensus Estimate for ASML’s second-quarter 2026 revenues have been pegged at $10.48 billion, indicating year-over-year growth of 20%.
ASML projects its gross margin between 51% and 52%. The company also expects Installed Base Management sales of around €2.5 billion, with R&D costs around €1.2 billion and SG&A costs around €0.3 billion.
The Zacks Consensus Estimate for ASML’s second-quarter 2026 earnings has been pegged at 7.92%, indicating year-over-year growth of 74%.
For the full year, ASML raised and narrowed its revenue outlook, now expecting 2026 total net sales between €36 billion and €40 billion.
The Zacks Consensus Estimate for ASML’s 2026 revenues has been pegged at $43.99 billion, indicating growth of 19% year over year.
ASML maintained a gross margin expectation of 51% to 53%. Management added that the guidance range is intended to accommodate potential outcomes tied to ongoing discussions around export controls.
The Zacks Consensus Estimate for ASML’s 2026 earnings has been pegged at $34.46, indicating year-over-year growth of 23.3%.
ASML also reiterated its plan to declare a total dividend for 2025 of €7.50 per ordinary share, implying a 17% increase compared with 2024, and outlined a proposed final dividend of €2.70 per share after recognizing interim dividends already paid.
Zacks Rank and Stocks to Consider
Currently, ASML carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks (ADI - Free Report) , Advanced Energy (AEIS - Free Report) and Applied Materials (AMAT - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Shares of Arista Networks have gained 17.8% year to date. The Zacks Consensus Estimate for ANET’s 2026 earnings is pegged at $3.53 per share, up by a penny over the past 30 days, indicating an increase of 18.5% year over year.
Shares of Advanced Energy have gained 78.8% year to date. The Zacks Consensus Estimate for AEIS’ 2026 earnings is pegged at $8.32 per share, down a penny over the past 60 days, indicating a rise of 29.8% year over year.
Applied Materials shares have surged 53.4% year to date. The Zacks Consensus Estimate for AMAT’s fiscal 2026 earnings is pegged at $11.10 per share, up 7 cents over the past 30 days, indicating an increase of 17.8% year over year.