ASML Raises 2026 Sales Outlook to €40 B, Q2 Guidance Miss Spurs 6% Decline
ASML reported Q1 revenue of €8.8 billion and net income of €2.8 billion, raised its 2026 sales outlook to €36–40 billion but set Q2 guidance slightly below consensus estimates. Export restrictions caused its China segment to shrink from 36% to 19% of net system sales, prompting a near-6% stock drop.
1. First Quarter Financials
ASML reported Q1 revenue of €8.8 billion and net income of €2.8 billion, reflecting robust demand for its EUV lithography systems. Production ramp remains constrained by complex assembly processes, sustaining a supply-driven environment in the advanced chip equipment market.
2. China Segment Shrinks
Export controls on high-end machinery caused the China segment’s share of net system sales to decline from 36% in Q4 to 19% in Q1. This reallocation underscores shifting regional demand dynamics and potential longer-term revenue headwinds in Asia.
3. Guidance and Market Response
Management raised the 2026 sales outlook to €36–40 billion but set Q2 revenue guidance slightly below analyst expectations, triggering a near-6% share price decline. Investors will monitor execution on capacity expansion and evolving policy impacts for future performance.