ASML raised its 2026 revenue guidance backed by a €12 billion buyback, citing strong chip demand and lithography dominance.
ASML Holding raised its 2026 revenue guidance to between €36 billion and €40 billion, supported by a €12 billion share buyback. The company reported $10.34 billion in revenue for Q1 FY2026, with a 53.0% gross margin, driven by its monopoly in lithography tools and recurring service revenue.
The company’s net system sales reached $7.41 billion, while installed base management contributed $2.93 billion. CEO Christophe Fouquet noted that chip demand continues to outpace supply. In contrast, Applied Materials posted $7.91 billion in revenue, up 11.4% year-over-year, but faces cyclical challenges in deposition and etch markets.
ASML’s pricing power and backlog of $45 billion position it as a key player in AI infrastructure, while Applied Materials’ CEO sold 110,000 shares amid an 80% free cash flow decline despite record revenue.