ASML Holding ASML posted first-quarter 2026 earnings of \u20ac7.15 per share, up 19.2% year over year. Converted to USD, ASML\u2019s first-quarter 2026 earnings came at $8.37 per share, which beat the Zacks Consensus Estimates by 8.4%.<\/p>\n
ASML beat earnings estimates in two of the trailing four quarters, while missing twice, with the average negative surprise being 4.5%.<\/p>\n
Total net sales were \u20ac8.77 billion, which increased 13.2% from the year-ago quarter and came within the company\u2019s prior outlook range. Converted to USD, ASML\u2019s first-quarter 2026 revenues were $10.3 billion, which beat the Zacks Consensus Estimates by 0.5%.<\/p>\n
ASML\u2019s Net system sales totaled \u20ac6.3 billion, supported by more than \u20ac4.1 billion from EUV systems, which included sales of two High-NA systems, and more than \u20ac2.1 billion from non-EUV systems.<\/p>\n
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.<\/p>\n
ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote<\/p>\n
Installed Base Management sales came in at \u20ac2.5 billion, slightly above guidance, underscoring steady service and upgrade activity tied to a growing installed base.<\/p>\n
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.<\/p>\n
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.<\/p>\n
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.<\/p>\n
Operating margin was 36%. R&D costs were about \u20ac1.2 billion, and SG&A expenses were approximately \u20ac0.3 billion in the first quarter.<\/p>\n
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ASML\u2019s effective tax rate was 17.1% for the quarter, aligning closely with the company\u2019s expectation for an annualized effective tax rate of around 17% for 2026. ASML\u2019s net income represented 31.4% of total net sales.<\/p>\n
ASML ended the quarter with \u20ac8.38 billion in cash, cash equivalents and short-term investments compared to the fourth quarter of 2025\u2019s cash, cash equivalents and short-term investments of $13.3 billion.<\/p>\n
Management said free cash flow was negative \u20ac2.6 billion in the period, largely due to the timing of down payments.<\/p>\n
Shareholder returns remained a key element of the capital allocation strategy. During the first quarter, ASML purchased around \u20ac1.1 billion worth of shares under its 2026-2028 share buyback program.<\/p>\n
For the second quarter of 2026, ASML expects total net sales between \u20ac8.4 billion and \u20ac9.0 billion. The Zacks Consensus Estimate for ASML\u2019s second-quarter 2026 revenues have been pegged at $10.48 billion, indicating year-over-year growth of 20%.<\/p>\n
ASML projects its gross margin between 51% and 52%. The company also expects Installed Base Management sales of around \u20ac2.5 billion, with R&D costs around \u20ac1.2 billion and SG&A costs around \u20ac0.3 billion.<\/p>\n
The Zacks Consensus Estimate for ASML\u2019s second-quarter 2026 earnings has been pegged at 7.92%, indicating year-over-year growth of 74%.<\/p>\n
For the full year, ASML raised and narrowed its revenue outlook, now expecting 2026 total net sales between \u20ac36 billion and \u20ac40 billion.<\/p>\n
The Zacks Consensus Estimate for ASML\u2019s 2026 revenues has been pegged at $43.99 billion, indicating growth of 19% year over year.<\/p>\n
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.<\/p>\n
The Zacks Consensus Estimate for ASML\u2019s 2026 earnings has been pegged at $34.46, indicating year-over-year growth of 23.3%.<\/p>\n
ASML also reiterated its plan to declare a total dividend for 2025 of \u20ac7.50 per ordinary share, implying a 17% increase compared with 2024, and outlined a proposed final dividend of \u20ac2.70 per share after recognizing interim dividends already paid.<\/p>\n
Currently, ASML carries a Zacks Rank #3 (Hold).<\/p>\n
Some better-ranked stocks in the broader Zacks Computer and Technology sector are Arista Networks ADI, Advanced Energy AEIS and Applied Materials AMAT, each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today\u2019s Zacks #1 Rank (Strong Buy) stocks here.<\/p>\n
Shares of Arista Networks have gained 17.8% year to date. The Zacks Consensus Estimate for ANET\u2019s 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.<\/p>\n
Shares of Advanced Energy have gained 78.8% year to date. The Zacks Consensus Estimate for AEIS\u2019 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.<\/p>\n
Applied Materials shares have surged 53.4% year to date. The Zacks Consensus Estimate for AMAT\u2019s 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.<\/p>\n
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report<\/a><\/p>\n Analog Devices, Inc. (ADI) : Free Stock Analysis Report<\/a><\/p>\n ASML Holding N.V. (ASML) : Free Stock Analysis Report<\/a><\/p>\n Applied Materials, Inc. (AMAT) : Free Stock Analysis Report<\/a><\/p>\n Advanced Energy Industries, Inc. (AEIS) : Free Stock Analysis Report<\/a><\/p>\n This article originally published on Zacks Investment Research (zacks.com).<\/a><\/p>\n