ASML posted Q1 2026 net sales of €8.77 billion and EPS of €7.15, beating consensus estimates of €8.5 billion in revenue and €6.57 EPS. Net income reached €2.76 billion, and management raised full-year 2026 guidance to €36-€40 billion. Shares fell roughly 6% on the session amid tightening China export concerns.
About ASML
ASML Holding NV(NASDAQ: ASML; Euronext Amsterdam: ASML) is the world’s leading supplier of photolithography systems used to manufacture advanced semiconductors, and holds a monopoly on extreme ultraviolet (EUV) lithography machines required for leading-edge chip production. Headquartered in Veldhoven, the Netherlands, ASML was founded in 1984 and is currently the most valuable technology company in Europe by market capitalization.
As of April 2026, the company’s market capitalization stood at approximately €478.78 billion (about $569.57 billion) with a trailing P/E ratio near 48-50. The company serves foundry and memory customers including TSMC, Samsung, Intel, and SK Hynix. Its product portfolio covers EUV, deep ultraviolet (DUV) immersion and dry systems, plus a large Installed Base Management service business generating recurring revenue.
Top Financial Highlights
- Total net sales of €8.77 billion, up from €7.74 billion in Q1 2025
- Net income of €2.76 billion, compared with €2.36 billion a year ago
- Basic EPS of €7.15, versus €6.00 in Q1 2025
- Gross margin of 53.0%, at the high end of guidance
- Operating margin reached 36.0%
- Net system sales of €6.3 billion, with Installed Base Management sales of €2.5 billion
- R&D expenses of €1.2 billion and SG&A of €0.3 billion
- Effective tax rate of 17.1% for the quarter
- Free cash flow was negative €2.6 billion, primarily due to timing of advance payments
- Sold 67 new lithography systems and 12 used systems, down from 94 new units in Q4 2025
- Cash, cash equivalents and short-term investments of €8.4 billion at quarter-end
- Share repurchases of approximately €1.0 billion during Q1 2026
- Q2 2026 guidance of €8.4-€9.0 billion in net sales with gross margin of 51-52%
- Full-year 2026 guidance raised to €36-€40 billion from prior €34-€39 billion range
- China accounted for approximately 20% of overall business in the quarter
Beat or Miss?
| Metric | Reported | Estimated/Expected | Difference/Analysis |
| Revenue | €8.77 billion | €8.50 billion (LSEG) | Beat by ~€270 million |
| Net Income | €2.76 billion | €2.54 billion (LSEG) | Beat by ~€220 million |
| EPS (Basic) | €7.15 | €6.57 (FactSet) | Beat by €0.58 |
| Gross Margin | 53.0% | 51-53% (company guidance) | High end of range |
| Q2 2026 Revenue Guidance | €8.4-€9.0 billion | €9.04 billion (LSEG) | Midpoint below consensus |
| 2026 Full-Year Guidance | €36-€40 billion | €37.68 billion (LSEG) | Raised, straddles consensus |
What Leadership Is Saying?
“Our first-quarter total net sales were €8.8 billion, within our guidance, and gross margin came in at 53.0%, at the high end of guidance. Given the demand dynamics discussed above, we now expect total net sales for 2026 to be between €36 billion and €40 billion. We expect that the bandwidth in our 2026 guidance accommodates potential outcomes of ongoing discussions around export controls.” – Christophe Fouquet, President and CEO, ASML
“For the quarter, total net sales came in at EUR 8.8 billion. That was within guidance. Included in the EUR 8.8 billion was EUR 2.5 billion for installed base revenue. That was a little bit above the guidance. If you look at the gross margin for Q1, 53%, that was at the high end of the gross margin that we guided.” – Roger Dassen, Chief Financial Officer, ASML
Historical Performance
| Category | Q1 2026 | Q1 2025 | Change (%) |
| Total Net Sales | €8,766.9 million | €7,741.5 million | 13.20% |
| Net Income | €2,756.7 million | €2,355 million | 17.10% |
| EPS (Basic) | €7.15 | €6.00 | 19.20% |
| Gross Margin | 53.0% | 54.0% | -100 bps |
Historical Performance of Competitors
Key peers in semiconductor manufacturing equipment include Applied Materials, Lam Research, and KLA Corporation. Directly comparable calendar Q1 2026 results for these peers were not yet available at the time of ASML’s release, since their fiscal calendars and reporting dates differ.
| Category | ASML Q1 2026 | ASML Q1 2025 | Change (%) |
| Revenue | €8.77 billion | €7.74 billion | 13.20% |
| Net Income | €2.76 billion | €2.36 billion | 17.10% |
| R&D + SG&A | €1.5 billion | N/A | N/A |
How the Market Reacted?
ASML shares declined approximately 6% during trading on April 15, 2026 despite the revenue and profit beat, as investors focused on tightening China export restrictions and a Q2 revenue guidance midpoint of €8.7 billion that came in below the €9.04 billion LSEG consensus.
Earlier in the Amsterdam session, shares had briefly touched a record high above €1,300 before reversing. By April 20, 2026, the stock had settled near €1,226, still up roughly 35% year-to-date. Analyst sentiment remained constructive on the raised full-year outlook, though premium valuation multiples near 48x trailing earnings left limited room for disappointment on geopolitical risks.
Sources
