ASML, the Dutch semiconductor giant, has posted a rise in net profits to €2.76 billion for the first quarter of 2026 representing a 15% increase compared to the same quarter in the previous year.
The most valuable technology company in Europe, ASML, reported on Wednesday that the ongoing expansion of AI infrastructure has significantly enhanced its bottom line.
The Dutch firm delivered net profits of €2.76 billion for the first quarter of this year, representing a 15% increase compared with the same period in 2025.
As a pivotal player in the international supply chain of semiconductors, ASML produces the lithography machines required to create the world's most advanced microchips.
Following a strong start to the year, the company now expects full-year sales for 2026 to reach between €36 billion and €40 billion, an increase from its previous forecast range of €34 billion to €39 billion.
According to the firm's CEO, Christophe Fouquet, the semiconductor industry's growth outlook continues to solidify, particularly as logic and memory customers accelerate their capacity expansion plans.
The company's first-quarter revenue reached €8.77 billion, placing it at the higher end of previous guidance. This performance also represents a notable increase from the €7.8 billion recorded during the same period in 2025.
In particular, South Korea has emerged as the company's largest market this quarter, accounting for 45% of system sales as manufacturers there ramp up production for AI-related memory chips.
To maintain its competitive edge and manage costs, ASML underwent an organisational restructuring early last year, which resulted in approximately 1,700 layoffs, primarily within leadership positions in the Netherlands and the US.
Navigating geopolitical headwinds and export controls
Despite the positive financial results, ASML remains a central figure in the escalating trade tensions between Washington and Beijing.
The company reported that its sales to China accounted for 33% of its revenue in 2025, a decrease from 41% the year before.
This shift comes as the US continues to lead a coordinated effort to restrict the export of high-end semiconductors to China, citing concerns over military applications.
ASML has previously cautioned that its Chinese sales could see further declines this year due to these regulatory pressures.
However, Fouquet noted that the updated sales forecast for 2026 is designed to accommodate various potential outcomes regarding ongoing discussions over export controls.
Ben Barringer, head of technology research at Quilter Cheviot, also highlighted the geopolitical nuances of the company's position, noting that "the Dutch prime minister met with President Trump so we can only assume that the issue came up in discussion."
US President Donald Trump is scheduled to visit China on 14 May, marking the first US presidential trip to China in nearly a decade.
Market reaction and future prospects
At the time of writing, ASML shares have risen 1.4% in the European trading session.
Market analysts have reacted positively to the results, noting the company's ability to exceed expectations despite macroeconomic uncertainty and suggesting that the overall data remains robust.
Barringer stated that the firm provided a decent beat in its latest results but nothing exceptional for what is an in-demand company with an enviable market position.
He further observed that "the company delivered a 2% beat on expectations when it came to revenues, while earnings per share beat by about 10%".
As AI demand continues to drive the logic and memory markets, ASML appears well-positioned to navigate the complexities of the current technological landscape.
DW Deutsch 
