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ASML Holding (NASDAQ:ASML) reports Q1 2026 results on April 15 before the market opens. As the world’s sole manufacturer of extreme ultraviolet lithography equipment, every quarterly print carries outsized weight for the entire AI chip supply chain.
ASML closed out 2025 on a high note for orders but a softer note for earnings. Q4 2025 EPS came in at $8.5254 against an estimate of $8.60, a miss of -0.87%, while revenue of $11.29 billion beat expectations by 18.41%. The headline that mattered most: net bookings hit a record $15.28 billion, including $8.60 billion in EUV orders, and the year-end backlog reached $45.06 billion.
Since then, the story has grown more complex. On March 24, SK Hynix disclosed a $7.9 billion multi-year EUV equipment purchase extending through 2027, the largest single disclosed order in ASML’s history. That announcement briefly lifted shares 4.60% on March 24, but the gain was quickly erased. A restructuring plan cutting 1,700 roles triggered an employee walkout on March 26, and Santander, Barclays, Mizuho, Erste Group, and Morgan Stanley all issued downgrades citing caution on 2026 revenue growth. Shares are down 13.55% over the past month, even as they remain up 17.37% year-to-date.
|
Metric |
Q1 2026 Estimate |
Q1 2025 Actual |
YoY Change |
FY 2026 Estimate |
|---|---|---|---|---|
|
EPS |
$6.6471 |
$6.00 |
N/A |
N/A (FY 2025 actual: $28.70) |
|
Revenue |
$8.61B |
N/A |
N/A |
€34B–€39B (~$39.49B–$45.30B USD) |
|
Gross Margin |
51%–53% (guided) |
52.8% (FY 2025) |
Flat to slight compression |
51%–53% (guided) |
Note: ASML guides in euros. The Q1 2026 revenue guidance range of €8.2B–€8.9B translates to approximately $9.52B–$10.34B USD, suggesting the dollar-denominated consensus of $8.61B sits at the low end of what management itself projected.
The central question for April 15 is whether AI-driven demand for advanced Logic and DRAM capacity keeps translating into firm orders, or whether macro uncertainty and export controls start to bite. Three metrics stand out heading into the print.
First, China exposure. China represented $11.06 billion, or roughly 29% of FY 2025 revenue, and management has signaled that share will decline meaningfully in 2026 as export restrictions tighten. How much of that shortfall Taiwan, South Korea, and the U.S. can absorb will define the year. Taiwan contributed $9.68 billion and South Korea $9.48 billion in FY 2025, and the SK Hynix deal suggests South Korea is stepping up.
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Second, the High NA EUV ramp. ASML shipped its first TWINSCAN EXE:5200B at full spec, and Intel accepted the EXE:5200 for high-volume manufacturing. That transition from development to early adoption is critical for ASML’s long-term revenue targets. Any update on EXE platform shipment cadence for 2026 will move the stock.
Third, restructuring tone. The 1,700-role reduction and the employee walkout created real noise heading into this print. How CEO Christophe Fouquet frames execution confidence against the cost-reduction backdrop will be worth watching. Last quarter, he said, “We expect 2026 to be another growth year for ASML’s business, largely driven by a significant increase in EUV sales and growth in our installed base business sales.” Whether that tone holds or softens matters as much as the numbers.
Analyst targets remain wide. Bernstein raised its target to $1,971 on aggressive DRAM capacity expansion, while the consensus sits near $1,465. That spread reflects genuine uncertainty about how fast the EUV ramp can offset China headwinds.
ASML’s structural position as the only EUV supplier remains intact. The pace of 2026 revenue recognition against a $45.06 billion backlog, with 65% expected to be recognized within 12 months. If management reaffirms full-year guidance and orders stay firm, the recent pullback may appear less severe in context. If guidance gets trimmed, the premium valuation at a forward P/E of 37x will face real pressure. April 15 is the first real test of whether 2026 lives up to the promise.
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