ASML Holding (ASML)

ASML (ASML) is the Dutch company that makes the lithography machines used to print computer chips, and the only maker of extreme ultraviolet (EUV) systems. Those tools enable the leading-edge nodes that fabricate Google’s TPUs. In Q1 2026 it reported total net sales of €8.8 billion and net income of €2.8 billion.

What does ASML do?

ASML makes photolithography systems, the machines that print the microscopic circuit patterns onto silicon wafers. Lithography is the single most critical step in chip manufacturing, and ASML’s importance comes from a near-total monopoly at the leading edge: it is the only company in the world that builds extreme ultraviolet (EUV) lithography machines, the tools needed to manufacture the most advanced chips. In Q1 2026 it sold 67 new lithography systems and 12 used ones (ASML, Apr 15, 2026).

ASML’s revenue splits into two parts. Net system sales, the machines themselves, were €6.3 billion in Q1 2026. Installed Base Management sales, which is service and field upgrades on the machines already running in customer fabs, added €2.5 billion. ASML is a foreign private issuer that reports in euros under US GAAP; the figures here come from its quarterly press release filed with the SEC on Form 6-K.

Why is ASML part of the Google value chain?

The Google value chain concept follows AI compute from Alphabet’s designs down to the equipment that makes the chips possible, and ASML is that final layer. TSMC fabricates Google’s TPUs on 3-nanometer and more advanced nodes, but those nodes cannot be patterned at all without EUV lithography, and EUV machines come from ASML alone. The Ironwood TPU built on TSMC’s leading-edge process (The Next Web) ultimately traces back to an ASML tool. That is what places ASML at the base of the chain: a true chokepoint that the entire AI compute stack rests on.

The position gives ASML unusual visibility into demand. When Alphabet and other hyperscalers raise their AI capex, TSMC and its peers order more leading-edge capacity, and that capacity needs ASML machines. On the Q1 2026 call, ASML said customers were accelerating their capacity plans and increasing their expected near- and medium-term demand, which lifted order intake and the full-year outlook.

“The semiconductor industry’s growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments. Demand for chips is outpacing supply. In response, our customers are accelerating their capacity expansion plans for 2026 and beyond.”

— Christophe Fouquet, President and CEO of ASML, Q1 2026 results

What did ASML report most recently?

In Q1 2026 (the quarter ended March 29, 2026), ASML posted total net sales of €8.8 billion (€8,767 million), within its guidance, with a gross margin of 53.0% at the high end of guidance (ASML, Apr 15, 2026). Net income was €2.76 billion (€2,757 million) and basic EPS was €7.15. Net system sales were €6.3 billion and Installed Base Management sales were €2.5 billion. ASML also bought back about €1.1 billion of shares in the quarter and proposed raising its 2025 dividend 17% to €7.50 per share.

What is ASML’s guidance?

ASML raised its full-year 2026 outlook on the back of stronger demand. It now expects total net sales of €36 billion to €40 billion for 2026, with a gross margin of 51% to 53% (ASML, Apr 15, 2026). For Q2 2026 it guided to net sales of €8.4 billion to €9.0 billion and a gross margin of 51% to 52%. Management noted the wide full-year range is meant to accommodate potential outcomes of ongoing export-control discussions, a reminder that policy, not just demand, shapes ASML’s results.

What are the risks for ASML?

• Export controls. ASML’s most advanced machines are subject to export restrictions, particularly on sales to China. Changes in policy can swing a meaningful slice of demand, and the company itself flags this as a source of uncertainty in its guidance.
• Customer concentration. A small number of leading-edge logic and memory makers, chiefly TSMC, Samsung, and Intel, buy most of ASML’s EUV systems. Their capex cycles drive ASML’s revenue.
• Lumpy revenue. EUV machines are large, expensive, and shipped in small numbers, so timing of a handful of systems can move a quarter materially.
• Long lead times. The complexity of EUV and High-NA EUV means ramping capacity is slow, which can cap upside if demand outruns ASML’s ability to build machines.

Related securities, concepts & terms

• Google (Alphabet) AI Value Chainparent
• Taiwan Semiconductor (TSM)sibling
• Alphabet (GOOGL)sibling

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Frequently asked questions about ASML

Sources & references

1. ASML reports €8.8 billion total net sales and €2.8 billion net income in Q1 2026 (Form 6-K, Exhibit 99.1) · ASML Holding NV / SEC EDGAR, 2026-04-15
2. ASML reports €8.8 billion total net sales and €2.8 billion net income in Q1 2026 (Investor Relations) · ASML Holding NV, 2026-04-15
3. ASML financial results overview (Q1 2026 results published April 15, 2026) · ASML Holding NV, 2026-04-15
4. Google launches Ironwood TPU built on EUV-patterned TSMC leading-edge nodes · The Next Web, 2025-04-09
5. ASML financial calendar (upcoming results and events) · ASML Holding NV, 2026-06-04