European technology powerhouse ASML announced robust first-quarter profits today, with net earnings reaching €2.76 billion, a 15% jump year-over-year. The Dutch firm, crucial to the global semiconductor supply chain, attributes its enhanced financial performance to the accelerating expansion of AI infrastructure. ASML manufactures the critical lithography machines essential for producing the world's most advanced microchips.
Buoyed by this strong start, ASML has raised its full-year sales forecast for 2026 to between €36 billion and €40 billion. CEO Christophe Fouquet noted that the semiconductor industry's growth outlook is strengthening, as both logic and memory customers boost capacity.
First-quarter revenue hit €8.77 billion, exceeding previous guidance. South Korea emerged as ASML's largest market, accounting for 45% of system sales as local manufacturers ramp up production for AI-related memory chips.
Despite positive financial results, ASML navigates geopolitical tensions, particularly US-China trade restrictions. Sales to China represented 33% of revenue in 2025, down from 41% the previous year, due to US efforts to limit high-end semiconductor exports. The company's updated sales forecast accounts for potential outcomes related to ongoing export control discussions.
Market reaction has been positive, with analysts citing ASML's ability to exceed expectations amidst macroeconomic uncertainty. The company appears strategically positioned to capitalize on ongoing AI demand.