ASML Lifts 2026 Revenue Range to €36–40B and Boosts Dividend 17%
ASML reported Q1 net sales of €8.8 billion, a 53% gross margin at the top end of guidance, and net income of €2.8 billion, then raised its full-year 2026 revenue outlook to €36–40 billion. It repurchased €1.1 billion of shares, increased dividends 17% to €7.50, and saw China sales drop to 19%.
1. Q1 Financial Performance and Outlook
ASML delivered €8.8 billion in Q1 net sales, a 53% gross margin at the high end of its guidance, and net income of €2.8 billion with EPS of €7.15. The company raised its 2026 revenue outlook to €36–40 billion, maintained a 51–53% gross margin range, and guided Q2 sales at €8.4–9.0 billion.
2. Share Buyback and Dividend Increase
Under its 2026–2028 buyback program, ASML repurchased €1.1 billion of stock in Q1, reducing shares outstanding by 1.7% year over year. It also proposed a 2025 dividend of €7.50 per share, a 17% increase from 2024.
3. Demand Drivers and Market Exposure
Memory-related tool sales comprised 51% of new-tool net sales, up from 30% in the prior quarter, while South Korea and Taiwan accounted for 45% and 23% of sales respectively. China’s system sales share declined to 19% from 36% as export control discussions continue.
4. Capacity Expansion and Production Targets
CFO set a 2026 shipment target of 60 low-NA EUV machines, about a 25% increase over 2025, with production capacity planned to reach at least 80 units in 2027. CEO noted customers are accelerating capacity expansion plans supported by long-term agreements.