1Q26 Results and 2Q26/2026 Guidance
1Q26 revenue slightly exceeded market expectations, with a gross margin of 53.0% (vs. consensus 52.2%), reaching the high end of guidance. Q2 gross margin is projected at 51-52%, primarily due to the normalization of the upgrade business mix following Q1 and increased personnel costs associated with capacity expansion.
The 2026 revenue target was upwardly revised from €34-39 billion to €36-40 billion (vs. market expectation of €38 billion). The revision is mainly driven by stronger-than-anticipated non-EUV business intensity and Q1 order growth. The 2026 gross margin guidance remains unchanged at 51-53%.
Capacity Expansion Plans
ASML plans to achieve a capacity of approximately 60 Low NA EUV systems in 2026. For 2027, ASML aims to increase capacity to at least 80 units, though the market seeks more explicit upside guidance regarding 2027 targets.
