ASML Holding reports its second-quarter 2026 earnings tomorrow, July 15, with investors watching closely for updates on the company’s capacity plans amid surging demand for AI chip manufacturing equipment. The Dutch lithography giant has already signaled strong momentum, raising its full-year 2026 revenue guidance in April to €36 billion to €40 billion, up from €34 billion to €39 billion, citing AI-driven demand that CEO Christophe Fouquet said is outpacing available supply.
In the first quarter of 2026, ASML posted €8.8 billion in net sales and €2.8 billion in net income, beating analyst expectations. The company guided Q2 net sales between €8.4 billion and €9.0 billion, with a gross margin of 51% to 52%, according to its April earnings announcement. The standout trend: memory chip demand, which surged to 51% of new-tool net sales in Q1, a sharp jump from 30% in the prior quarter, as hyperscalers raced to build capacity for AI workloads.
ASML’s capacity expansion reflects the intensity of that demand. The company targets shipment of 60 low-NA EUV lithography machines in 2026, roughly a 25% increase over 2025 volumes, with manufacturing capacity positioned to reach at least 80 units in 2027, according to CFO Roger Dassen. These are the advanced tools required to produce the most cutting-edge chips that power AI systems, and no other company can manufacture them—ASML holds a near-monopoly on EUV lithography technology.
Geographically, the AI boom has reshaped ASML’s customer base. South Korea led all markets at 45% of Q1 sales, driven by memory chip makers, while Taiwan contributed 23%. China’s share retreated to 19%, less than half the 36% it held in the final quarter of 2025, as U.S. export controls tightened and ASML was barred from selling advanced tools to the region. The company noted that China could account for roughly 20% of full-year 2026 revenue, though new restrictions could push results to the lower bound of guidance.
ASML stock has surged 40% year-to-date, reflecting investor confidence in the AI investment cycle. The company also launched a €1.1 billion share buyback in Q1 and increased its 2025 dividend by 17% to €7.50 per ordinary share. Investors will look to tomorrow’s earnings for confirmation that the AI-driven demand remains robust and that the company’s capacity expansion can keep pace with customer orders.
Sources
- Quartz — ASML’s Q1 2026 earnings, raised 2026 guidance to €36–40 billion, memory chip demand surge to 51% of sales, capacity expansion plans, and geographic sales breakdown
- ASML official press release — Q1 2026 financial results announcement, CEO and CFO statements on AI demand and capacity targets
- Yahoo Finance — Q2 2026 guidance of €8.4–9.0 billion in net sales and 51–52% gross margin
- Stock Titan — ASML Q2 2026 earnings report date and capacity expansion context
