As expected for one of Europe’s most valuable companies, chipmaker ASML has reported strong results, with €8.8bn net sales and €2.8bn net income in Q1.

Dutch chips giant ASML now expects 2026 total net sales to be between €36bn and €40bn, with a gross margin of between 51pc and 53pc, after a strong showing in quarter one, as was widely expected.

“The semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments,” said CEO Christophe Fouquet.

“Demand for chips is outpacing supply. In response, our customers are accelerating their capacity expansion plans for 2026 and beyond, supported by long-term agreements with their customers.

“These business dynamics underpin our expectation that 2026 will be another growth year for all our businesses.”

Fouquet said ASML foresees second-quarter net sales of between €8.4bn and €9bn, with a gross margin again of between 51pc and 52pc.

“We expect R&D costs of around €1.2bn and SG&A costs of around €0.3bn. Given the demand dynamics discussed, we now expect total net sales for 2026 to be between €36bn and €40bn, with a gross margin between 51pc and 53pc. We expect that the bandwidth in our 2026 guidance accommodates potential outcomes of ongoing discussions around export controls.”

In January, the Dutch semiconductor equipment manufacturer became the third European company to pass $500bn in market valuation, as its biggest customer TSMC – the world’s largest and most advanced dedicated independent semiconductor foundry – announced a better than expected outlook for 2026, with a planned capital budget of up to $56bn for the year.

ASML and TSMC both play a central role in global chipmaking capability. The Dutch company holds an effective monopoly on advanced lithography machines required to make advanced chips, while TSMC holds around 70pc of the semiconductor market, supplying its products to the likes of Apple, Nvidia and AMD.

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