What did ASML report in Q1 2026?

ASML posted Q1 2026 net sales of €8.8 billion and net income of €2.8 billion, both beating LSEG consensus estimates. The company raised its full-year 2026 guidance to €36–40 billion from a prior range of €34–39 billion, with a gross margin of 53.0 percent.

Why is ASML important to AI development?

ASML is the only manufacturer of extreme ultraviolet (EUV) lithography systems, which are required to produce advanced semiconductors below 7 nanometres. Every leading AI chip — including those made by TSMC for Nvidia, Apple, and Google — depends on ASML machines for production.

Why did ASML's stock fall despite a strong earnings report?

ASML shares dropped 2.1 percent on 15 April as investors focused on China's decline to 19 percent of Q1 revenue from 36 percent in Q4 2025. U.S. lawmakers introduced legislation in February 2026 that could further restrict ASML's ability to sell equipment to Chinese chipmakers, threatening roughly $7 billion in annual revenue.

What is the AI data centre power constraint?

Lawrence Berkeley National Laboratory projects AI data centres could consume 12 percent of U.S. grid capacity by 2028, up from 4 percent in 2024. More than half of planned U.S. data centre projects have been delayed or cancelled due to power shortages, creating a potential ceiling on demand for the advanced chips ASML's machines produce.

ASML Raises Forecast on AI Chip Demand

ASML lifted 2026 guidance to €36–40 billion on 15 April after Q1 net sales of €8.8 billion beat estimates, as AI chip demand shows no sign of slowing.

ASML Holding posted Q1 2026 net sales of €8.8 billion on 15 April — €300 million above LSEG consensus — and immediately raised its full-year guidance, projecting 2026 revenue of €36 billion to €40 billion against the prior forecast of €34 billion to €39 billion. The revision, upward on both ends by €2 billion, arrived the same week that reports confirmed more than half of planned U.S. AI data centre construction projects have been delayed or cancelled due to power grid constraints and hardware supply shortages. The machine that makes the machines, it turns out, is running ahead of schedule.

ASML is the sole manufacturer of extreme ultraviolet (EUV) lithography systems — the machines without which advanced semiconductors below the 7-nanometre threshold cannot be produced. That monopoly positions ASML as a leading indicator for the entire AI hardware chain. When ASML's orders surge, foundries are committing capital to expand the physical capacity that turns chip designs into silicon. When they dry up, the AI model buildout eventually stalls for want of compute.

By the numbers, the quarter was strong across every metric. Q1 net income came in at €2.8 billion, beating the LSEG estimate of €2.5 billion, with a gross margin of 53.0 percent — the top of the guidance range. ASML plans to ship 60 low-NA EUV systems in 2026, a 25 percent increase over its projected 2025 deliveries, CEO Christoph Fouquet said on a 15 April earnings call. China's share of total sales fell to 19 percent in Q1 from 36 percent in Q4 2025, reflecting the latest round of U.S.-led export restrictions that took effect in early 2026. Fouquet said the company's overall order intake "continues to be very strong" despite the China compression, as customers in Taiwan, South Korea, and the United States accelerate capacity commitments.

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ASML Raises Forecast on AI Chip Demand

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ASML Raises Forecast on AI Chip Demand

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