ASML, Europe's largest tech company by market value and a key supplier of semiconductor manufacturing equipment, reported a significant rise in net profits, driven by rapidly expanding AI-related investments [1]. The Dutch-based firm announced net profits of 2.76 billion euros ($3.25 billion) for the latest quarter, up from 2.4 billion euros in the first quarter of 2025 [1]. Total revenue for the first quarter reached 8.77 billion euros, which was at the 'high end' of the company's earlier predictions, compared to 7.8 billion euros in the first quarter of last year and 9.7 billion euros in the fourth quarter of 2025 [1].
ASML's CEO, Christophe Fouquet, highlighted that the semiconductor industry's growth outlook is solidifying due to ongoing AI-related infrastructure investments, and customers are accelerating their capacity expansion plans for 2026 and beyond, resulting in a 'very strong' order intake [1]. Reflecting this optimism, ASML raised its full-year sales forecast to between 36-40 billion euros, up from a previous estimate of 34-39 billion euros [1]. The new forecast range takes into account potential outcomes of ongoing discussions around export controls [1]. For the second quarter, ASML expects revenue between 8.4 billion and 9.0 billion euros [1].
Despite its positive outlook, ASML remains affected by geopolitical tensions, particularly the tech dispute between the United States and China. The company previously warned that its sales to China would 'decline significantly' this year due to US-led efforts to restrict high-tech exports to China, which Beijing has condemned as 'technological terrorism' [1]. In 2025, 33 percent of ASML's sales went to China, down from 41 percent in the previous year, though China remained its top customer in both years [1].
Earlier in January, ASML announced an organizational shake-up expected to result in the loss of around 1,700 jobs in the Netherlands and United States, mainly from leadership roles. The company currently employs approximately 44,000 staff worldwide [1].
CONCLUSION
ASML's robust earnings and upgraded sales forecast underscore strong demand fueled by AI infrastructure investments, despite ongoing export control challenges and reduced sales to China. The company's outlook for 2026 remains positive, with customers accelerating expansion plans and order intake described as 'very strong.' Market sentiment is bullish, reflecting confidence in continued growth for ASML and the semiconductor industry.