ASML Holding(ASML) - 2026 Q1 - Quarterly Results

Financial Performance - Total net sales for Q1 2026 were €8.8 billion, with Installed Base revenue contributing €2.5 billion, slightly above guidance[1] - Gross margin for Q1 2026 was 53%, at the high end of the guidance range[1] - The company reported a revenue of $20 billion for the quarter, representing a 10% year-over-year increase[29] - The company reported a revenue increase of 10% year-over-year, reaching $1.5 billion in the last quarter[36] - The company reported a significant increase in revenue, achieving $4.5 billion in Q3 2023, representing a 15% year-over-year growth[40] - ASML reported total net sales of €8.8 billion and net income of €2.8 billion in Q1 2026[43] - The gross margin for Q1 2026 was 53.0%, with an operating margin of 36.0%[50] - Earnings per share (basic) for Q1 2026 was €7.15, with net income as a percentage of total net sales at 31.4%[50] - The company reported a gross margin of 60%, consistent with the previous quarter, indicating stable cost management[40] Guidance and Projections - Q2 2026 guidance expects total net sales between €8.4 billion and €9 billion, with gross margin projected between 51% and 52%[2] - Full-year 2026 guidance has been narrowed to €36 billion to €40 billion, indicating strong growth expectations[9] - ASML expects total net sales for 2026 to be between €36 billion and €40 billion, with a gross margin between 51% and 53%[43] - The company anticipates annual revenue between approximately €44 billion and €60 billion by 2030, with a gross margin between 56% and 60%[48] - The company provided guidance for the next quarter, expecting revenue to be between $21 billion and $22 billion, indicating a growth of 5% to 10%[31] - The company provided a forward guidance of 12% revenue growth for the next quarter, projecting revenues between $1.68 billion and $1.75 billion[36] - ASML expects Q2 2026 total net sales to be between €8.4 billion and €9.0 billion, with a gross margin between 51% and 52%[83] Market and Industry Trends - The semiconductor industry is experiencing solid growth driven by AI infrastructure investments, with customers indicating they are sold out for 2026[3] - Increased adoption of EUV and immersion technologies is leading to higher lithography demand for ASML[5] - The semiconductor industry remains strong, driven by AI adoption, requiring major innovations to address power consumption and cost challenges[48] - ASML expects significant growth in the semiconductor industry by 2030, driven by AI demand and technological advancements[94] Research and Development - The company is investing $500 million in research and development for new technologies aimed at improving operational efficiency[33] - The company is investing $50 million in R&D for new technologies aimed at enhancing user experience[36] - The company is investing $200 million in R&D for new technologies aimed at enhancing user experience and product efficiency[40] - Significant advancements in technology include a demonstration of a 1,000 Watt source, which will enhance Low NA EUV capabilities[14] - R&D costs for Q1 2026 were approximately €1.2 billion, while SG&A costs were around €0.3 billion[68] Customer and Market Expansion - The Installed Base business is expected to see strong growth as customers seek to increase capacity[11] - Market expansion efforts are underway in Asia, with plans to enter three new countries by the end of the fiscal year[34] - Market expansion efforts have led to a 25% increase in market share in the Asia-Pacific region[36] - User data showed a growth of 15% in active users, reaching a total of 150 million[30] - User data showed a growth of 15% in active users, totaling 5 million users by the end of the quarter[36] - User data showed a total of 25 million active users, up from 20 million in the previous quarter, indicating a 25% increase[40] Strategic Initiatives - The company completed a strategic acquisition of a smaller tech firm for $200 million, which is expected to enhance its product offerings[35] - The company is exploring potential acquisitions to enhance its product portfolio, with a budget of $200 million allocated for this purpose[36] - The company is considering strategic acquisitions to bolster its market position, with a budget of $300 million allocated for potential deals[40] - A new strategic partnership was announced, expected to generate an additional $100 million in revenue over the next year[36] Customer Satisfaction and Operational Efficiency - Customer satisfaction ratings improved to 90%, reflecting the success of recent service enhancements[32] - Customer satisfaction ratings improved by 30%, reflecting the success of recent service enhancements[36] - Customer retention rates improved to 85%, up from 80% in the previous quarter, reflecting enhanced customer satisfaction initiatives[40] - The company reported a 5% decrease in operational costs due to improved efficiency measures[36] Shareholder Returns - ASML plans to return significant amounts of cash to shareholders through growing dividends and share buybacks[48] - The company purchased around 0.9 million shares for a total amount of approximately €1.1 billion in Q1 2026[66] - ASML plans to declare a total dividend of €7.50 per ordinary share for the year 2025, representing a 17% increase compared to 2024[85] - The company purchased approximately €1.1 billion worth of shares under the 2026–2028 share buyback program in the first quarter[86] Corporate Communication - ASML's CEO and CFO will discuss the first-quarter results and outlook for 2026 in a video interview available on their website[88] - An investor call will be hosted on April 15, 2026, at 15:00 Central European Time / 09:00 US Eastern Time[89] - ASML's primary accounting standard for financial reporting is US GAAP, with quarterly and annual reports available on their website[91] - The Consolidated Balance Sheets as of March 29, 2026, and related financial statements are unaudited[92] - Overall, the company remains optimistic about future growth, citing a strong pipeline of products and services set to launch in the upcoming quarters[40]