ASML Holding N.V. New York Registry Shares
ASML · Nasdaq
Next quarter
Reports Oct 14, 2026, before the open.
Consensus is $12.59 EPS for Sep 2026 across 3 estimates, ranging $11.98 to $13.38.
ASML Jun 2026
- 10.40%
- -1.67%
- $7.98
- $8.81
- —
- —
Highlights
- EPS beat: Reported quarterly EPS was 8.81 versus consensus of 7.98, a 10.4% upside surprise.
- First-half growth: Net sales rose 17.2% year over year to €18.1 billion, with system sales up 13.3% to €12.8 billion and service and field option sales up 28.1% to €5.2 billion.
- AI-driven demand: ASML said customer capacity expansion plans are accelerating on continued AI investment, supporting commitments across its product portfolio and longer-term demand visibility.
- 2026 outlook: The company expects full-year 2026 revenue of €43 billion to €45 billion.
- Capacity expansion: ASML plans to add 30% to 2026 NXE capacity of roughly 65 systems and 30% to NXT immersion capacity of roughly 130 systems in 2027, while investigating another 30% increase for each platform in 2028.
- Profitability pressure: First-half gross margin fell to 50.9% from 53.3% a year earlier, while operating margin declined to 33.8% from 38.1%.
- Investment intensity: First-half R&D expense increased 40.0% to €2.5 billion, reflecting spending on EXE, NXE, DUV, metrology, inspection and software roadmaps, as well as estimated technology-transformation costs.
- Cash conversion: Operating cash flow was negative €481.5 million in the first half versus positive €1.3 billion a year earlier, mainly because accounts receivable increased by €4.2 billion and contract assets and liabilities reduced cash flow by €2.0 billion.
- Shareholder returns: ASML repurchased approximately 1.7 million shares for €2.1 billion through June 28 and plans to pay a 2026 interim dividend of €1.88 per share on August 5.
Analysis
ASML’s June 2026 print was defined by a clear EPS beat and stronger demand visibility, although the supplied filing reports first-half operating data rather than a standalone quarterly income statement. Quarterly EPS of 8.81 exceeded the 7.98 consensus by 10.4%; no quarterly revenue consensus, prior-quarter revenue or prior-quarter EPS was provided in the supplied material. For the first half, sales increased 17.2% year over year to €18.1 billion, driven by higher EXE and NXE volumes, favorable EXE and NXT immersion mix and a 28.1% increase in service and field option sales to €5.2 billion.
The growth came with substantial investment and weaker reported margins. Gross margin declined 240 basis points to 50.9%, while operating income rose only 4.2% to €6.1 billion as R&D spending increased 40.0% to €2.5 billion. Management emphasized AI-related capacity expansion and said customer commitments support adding 30% to 2027 NXE and NXT immersion capacity, with another 30% under consideration for 2028. Full-year revenue guidance was €43 billion to €45 billion. Cash generation was a notable offset: operating cash flow swung to a €481.5 million outflow, while buybacks and dividends returned €3.7 billion during the first half.
Demand and product mix
First-half demand strengthened across advanced lithography and services. ASML attributed the 17.2% sales increase to higher EXE and NXE system volumes, favorable EXE and NXT immersion mix and higher service activity, partly offset by lower NXT immersion unit volumes.
- Systems: Lithography system sales increased to 170 units from 153, including 153 new systems versus 140 a year earlier. System revenue rose 13.3% to €12.8 billion.
- Advanced platforms: NXE sales increased to 29 systems from 24 and EXE sales increased to 3 systems from 1. NXE revenue rose to €6.7 billion from €5.6 billion.
- End markets: Memory system revenue rose to €6.4 billion from €4.2 billion, while Logic revenue declined to €6.4 billion from €7.2 billion.
- Services: Net service and field option sales rose 28.1% to €5.2 billion, reflecting the larger installed base and demand for productivity upgrades.
AI capacity expansion
Management linked the improving semiconductor outlook to ongoing AI investment and progress in AI technologies, which are driving demand for advanced Logic and Memory chips. Customers are accelerating capacity plans and providing commitments across ASML’s portfolio, giving the company greater visibility into longer-term demand.
- NXE: 2026 capacity is around 65 systems; ASML plans to add 30% in 2027 and is investigating another 30% increase in 2028.
- NXT immersion: 2026 capacity is around 130 systems; the company plans a 30% increase in 2027 and is investigating another 30% in 2028.
- Upgrades: ASML is also significantly expanding its upgrade portfolio, supporting output growth from the installed base in addition to new-system demand.
Margins and R&D investment
Revenue growth did not flow through fully to operating profit. First-half gross profit increased 11.9% to €9.2 billion, below the 17.2% sales increase, and gross margin fell to 50.9% from 53.3%. ASML cited higher amortization of capitalized development expenditures as the principal gross-margin pressure.
- Operating income: Operating profit rose 4.2% to €6.1 billion, reducing operating margin to 33.8% from 38.1%.
- R&D: R&D expense increased to €2.5 billion from €1.8 billion, or 13.7% of sales versus 11.5% a year earlier.
- Roadmap spending: Investment covered EXE and NXE platforms, DUV throughput and overlay, advanced packaging, e-beam inspection and metrology, next-generation YieldStar systems and holistic software applications.
- Net income: EU-IFRS net income rose 4.1% to €5.2 billion, while diluted net income per share increased to €13.59 from €12.89 for the first half.
2026 financial outlook
ASML expects full-year 2026 revenue of €43 billion to €45 billion. The outlook is supported by AI-related demand, customer capacity commitments and growth in the upgrade business. The supplied report does not provide a new full-year margin outlook or a standalone second-quarter revenue figure.
- Guidance range: Full-year revenue is expected at €43 billion to €45 billion.
- First-half progress: First-half revenue of €18.1 billion represents roughly 40% to 42% of the guided full-year range, leaving the larger contribution to the second half.
- Visibility: Management said customer commitments across the portfolio are improving visibility into longer-term demand, but the company continues to identify semiconductor cyclicality, geopolitical developments, regulation and supply-chain execution as material risks.
Cash flow and capital returns
Cash conversion weakened sharply despite higher earnings. Operating cash flow was negative €481.5 million in the first half, compared with positive €1.3 billion a year earlier, primarily because receivables increased and contract-related working capital absorbed cash. ASML continued substantial shareholder distributions while maintaining significant liquidity.
- Working capital: Accounts receivable reduced operating cash flow by €4.2 billion, while changes in contract assets and liabilities reduced it by €2.0 billion.
- Liquidity: Cash and cash equivalents declined to €6.7 billion from €12.9 billion at December 31, 2025, partly offset by €0.9 billion of short-term investments.
- Buybacks: The company repurchased approximately 1.7 million shares for €2.1 billion through June 28 under its €12.0 billion program running through December 2028.
- Dividends: First-half dividend payments totaled €1.7 billion, and ASML will pay a 2026 interim dividend of €1.88 per share on August 5.
