ASML Stock Slides Despite Record Forecast for 2026

ASML Holding (ASML) shares turned lower in Wednesday trading, falling 5% after the company issued a weaker-than-expected sales outlook for Q2. ASML expects revenue between €8.4 billion and €9.0 billion for the next quarter, below the €9.04 billion analysts had forecast.

However, the Dutch semiconductor giant raised its 2026 sales outlook, signaling continued strong demand driven by AI. ASML now expects sales to reach €36 billion to €40 billion, up from its earlier forecast of €34 billion to €39 billion, reflecting continued investment from major tech companies building AI capacity.

ASML Delivers Solid Quarter with Strong Margins

For the first quarter, ASML reported net sales of €8.8 billion, hitting the high end of expectations. Net income came in at €2.8 billion, up 17% from a year ago, while gross margin stood at 53%.

The company also shipped 16 EUV systems during the quarter and expects to produce at least 60 of its next-generation machines this year. These tools are critical for making advanced chips used in AI systems.

Wall Street’s Take on ASML Stock Post-Earnings

Following the earnings release, Barclays analyst Simon Coles reiterated an Overweight (Buy) rating on ASML with a €1,500 price target, highlighting continued strength in demand. Coles noted that even without detailed order data, management’s comments suggest demand remains “very strong,” as customers continue to expand capacity to support AI growth.

He also pointed to ongoing improvements in ASML’s EUV machines, which are becoming faster and more efficient. These gains are important because they support higher pricing and better margins over time.

Overall, ASML Holding’s shares remain a Strong Buy based on analysts’ consensus rating. This breaks down to seven Buys issued over the past three months. In addition, the average ASML price target of $1,745.42 implies about 15% upside from current trading levels.