ASML, the world’s largest provider of equipment used to make semiconductors, reported first-quarter earnings that beat expectations and raised its top-line forecast for 2026 as customers accelerate capacity expansion in response to rising chip demand.
In a statement, CEO Christophe Fouquet said: "Demand for chips is outpacing supply. In response, our customers are accelerating their capacity expansion plans for 2026 and beyond ...(and) our customers have increased their expected short- and medium-term demand for our products." The comment accompanied an updated revenue outlook and quarterly results released on Wednesday.
The Veldhoven, Netherlands-based company, noted as Europe’s most valuable firm by market capitalisation, lifted its 2026 revenue guidance to a range of 36 billion to 40 billion euros, from prior guidance of 34 billion to 39 billion euros. Analysts had been forecasting 37.7 billion euros, according to LSEG data cited with the announcement.
ASML is widely seen by investors as a core supplier to the AI-driven build-out of chipmaking capacity, providing essential machinery used by contract manufacturers such as TSMC, which produces processors for customers including Nvidia and Apple. The company’s shares have advanced about 40% so far this year amid rapid data centre construction and a shortage of memory chips, both factors that contribute to demand for ASML’s tools.
Addressing concerns about its ability to meet heightened demand, ASML’s chief financial officer said the firm expects to ship 60 of its flagship low-NA EUV tools in 2026 - 25% more than in 2025 - and to have capacity to ship 80 in 2027. ASML is the sole commercial manufacturer of these extreme ultraviolet lithography systems, which can cost about $300 million each and are required to pattern the tiny circuitry used in advanced processors and memory.
Financial results for the quarter showed net earnings of 2.76 billion euros on sales of 8.76 billion euros. That compares with net earnings of 2.36 billion euros on sales of 7.74 billion euros in the first quarter of 2025. The company included the exchange rate used in reporting: $1 = 0.8483 euros.
Taken together, ASML’s stronger-than-expected profitability, upward adjustment to 2026 revenue guidance, and disclosed plans to increase shipments of its most advanced equipment underscore how customer demand tied to AI and memory constraints is reshaping near-term investment plans across semiconductor manufacturing.