Overview
- ASML reported robust fiscal Q1 2026 results with €8.8 billion in net sales, a 53.0% gross margin, and €2.8 billion in net income while guiding Q2 sales between €8.4 billion and €9.0 billion.
- The company holds roughly a $45 billion year‑end backlog that gives multi‑year revenue visibility because EUV systems take years to qualify and deliver.
- Management raised the 2025 dividend and authorized a €12 billion share buyback program through 2028 that analysts say is funded by strong free cash flow.
- Several banks raised price targets this month and forecast accelerating sales of EUV and high‑NA tools as AI demand boosts capacity plans, while noting China demand may lag.
- Near‑term risks include tightened export controls and weaker China sales, so investors are watching new order flow, customer qualifications for high‑NA systems, and upcoming earnings for demand confirmation.