Dutch tech giant ASML, which makes cutting-edge machines to manufacture semiconductor chips, said Wednesday that rapidly expanding AI-related investments had pushed up net profits as it also hiked its sales forecast for 2026.
ASML, Europe's biggest tech firm by market value, is a critical cog in the global economy, as the semiconductors crafted with its tools power everything from smartphones to missiles.
In its latest quarterly earnings statement, the Dutch-based firm reported net profits of 2.76 billion euros ($3.25 billion), compared to 2.4 billion in the first quarter of 2025.
"The semiconductor industry's growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments," said the firm's CEO Christophe Fouquet.
Investors appeared to shrug off the news, with ASML shares rising just 0.2 percent at the opening bell of the Amsterdam stock market.
"Clearly 2026 is panning out very nicely. It's a very strong year. We're looking at a strong growth year," said Chief Financial Officer Roger Dassen.
The company raised its prediction for full-year sales to between 36-40 billion euros from a previous estimate of 34-39 billion euros.
That forecast range "accommodates potential outcomes of ongoing discussions around export controls", said Fouquet.
ASML has been caught in the crossfire of a tech spat between the United States and China and has previously warned its Chinese sales would "decline significantly" this year.
Washington is leading efforts to curb high-tech exports to China over fears they could be used to bolster the country's military.
Beijing has reacted furiously to the measures, describing them as "technological terrorism".
A breakdown of ASML figures shows that 33 percent of sales went to China in 2025, compared to 41 percent in the previous year, with China being the firm's top customer in both years.
- 'Another growth year' -
The firm said total revenue in the first quarter was 8.77 billion euros, at the "high end" of what the company had earlier predicted.
This compared to 7.8 billion in the first quarter of last year and 9.7 billion in the fourth quarter of 2025.
The company issued a new forecast for the second quarter, of between 8.4 billion and 9.0 billion euros.
Fouquet said ASML customers were "accelerating their capacity expansion plans for 2026 and beyond", resulting in a "very strong" order intake for the firm.
"These business dynamics underpin our expectation that 2026 will be another growth year for all our businesses," he said.
In January, ASML announced a shake-up in its organisation that was expected to result in the loss of around 1,700 jobs in the Netherlands and United States, mainly from leadership roles.
The firm employs roughly 44,000 staff worldwide.
ric/gv
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