ASML Holding N.V. ( ASML ) , the Dutch firm that is the world's sole supplier of extreme ultraviolet (EUV) lithography systems used to manufacture advanced semiconductors, reported first-quarter 2026 results on Wednesday, with its shares falling in premarket trading.

The chip equipment maker posted net sales of 8.77 billion euros ($10.26 billion), up from 7.74 billion euros a year earlier and slightly above analyst estimates of $10.21 billion. Gross margin declined 100 basis points year over year to 53.0%.

GAAP earnings came in at 7.15 euros per share ($8.37), up from 6.00 euros a year earlier and ahead of the consensus estimate of $7.72. ASML ( ASML ) ended the quarter with 8.38 billion euros in cash and equivalents.

Dividend, Buyback Plans

ASML ( ASML ) said it plans to declare a total dividend of 7.50 euros per ordinary share for 2025, a 17% increase from 2024. After three interim dividends of 1.60 euros per share paid in 2025 and 2026, the company will propose a final dividend of 2.70 euros per share at its Annual General Meeting.

During the first quarter, ASML ( ASML ) repurchased about 1.1 billion euros worth of shares under its 2026–2028 buyback program.

Management Commentary

CEO Christophe Fouquet said semiconductor demand continues to outpace supply, driven by sustained investment in AI infrastructure. He noted customers are accelerating capacity expansion plans for 2026 and beyond, supported by long-term agreements and rising demand expectations.

Chief Financial Officer Roger Dassen said the company is aligning closely with customers through system shipments, upgrades and installed base services. ASML ( ASML ) expects to produce at least 60 EUV Low-NA systems in 2026 and potentially 80 units in 2027.

Fouquet added that growing AI-driven demand is pushing customers to increase capital expenditure, ramp advanced nodes such as 2-nanometer technology, and expand adoption of EUV and immersion lithography.

Dassen emphasized that while 2026 is shaping up to be "a very strong year," the company has built flexibility into its guidance to "accommodate potential outcomes of the export control discussions."

Overall, the tone remained bullish, with ASML ( ASML ) signaling strong demand visibility and confidence in navigating geopolitical restrictions without derailing growth.

Outlook

ASML ( ASML ) expects second-quarter net sales of 8.4 billion euros to 9.0 billion euros, below the analyst consensus of 9.1 billion euros, and a gross margin of 51% to 52%.

For full-year 2026, the company raised its net sales outlook to 36 billion euros to 40 billion euros, up from a prior range of 34 billion euros to 39 billion euros. The forecast compares with analyst expectations of 37.9 billion euros. ASML ( ASML ) expects a full-year gross margin of 51% to 53%.

ASML Price Action: ASML Holding ( ASML ) shares were down 3.42% at $1466.40 during premarket trading on Wednesday, according to Benzinga Pro data.