ASM International N.V. Q1 2026: Revenue and EPS Beat, Strong Guidance for 2026 and Beyond

ASM International N.V. reported revenue of €1,010.7 million for Q1 2026, surpassing the street estimate of €974.6 million by 3.7%. This marks a significant year-over-year (YoY) increase of 2.8% and a sequential increase of 24.7% from Q4 2025. The company's EPS of €5.87 also beat the street estimate of €4.88 by 20.3%.

The strong financial performance is reflected in the company's gross margin, which reached 53.3% in Q1 2026, up from 49.8% in Q4 2025. This improvement is attributed to the high-margin nature of the company's equipment sales, particularly in ALD (Atomic Layer Deposition) and spares & services.

Paul Verhagen, CEO of ASM International, highlighted the company's performance, stating, "Our revenue in the first quarter of 2026 amounted to EUR 863 million, which was at the high end of our guided range of EUR 830 million plus or minus 4%." He further noted, "On a constant currency basis, revenue increased by 16% year-on-year and by 26% compared to Q4 '25."

The revenue growth was driven by strong performance across multiple segments. Equipment sales increased by 14% at constant currency, led by ALD. Spares & services continued to deliver a very strong performance with a 23% year-on-year growth at constant currency.

The company's gross margin in the first quarter amounted to a strong 53.3%, and Paul Verhagen expects the gross margin to be at the higher end of the target range of 47% to 51% for the full year. This strong margin performance is a testament to the company's focus on high-margin products and efficient operations.

For Q2 2026, ASM International projects revenue to increase to €980 million plus or minus 5%.

The company's guidance for the full year indicates continued momentum, with expectations for revenue to be higher in the second half of 2026 compared to the first half. Hichem M'Saad further elaborated, "As our customers move toward higher volume manufacturing in 2027 and 2028, we expect 1.4 nanometer to become a meaningful driver for ASM."

The transition to 4F² is expected to drive a step-up in ALD and Epi intensity, expanding the company's served available market by approximately €400 million to €450 million based on 100,000 wafer start per month capacity. This expansion is a significant opportunity for ASM International, as it aligns with the industry's move toward more advanced technology nodes.

CapEx for Q1 2026 amounted to €38 million, up from €30 million in the same quarter of last year. For the full year, the company expects CapEx to be around or somewhat above the higher end of the guided range of €150 million to €250 million, with the largest part related to the construction of a new site in Scottsdale, which remains on track for completion in Q1 2027.

The new site in Scottsdale is a strategic investment that will support the company's growth and capacity expansion, particularly in advanced technology nodes.

Compared to its peers in the Wafer Fab Equipment subsector, ASM International's performance stands out. The company's gross margin of 53.3% is significantly higher than the average of its peers, which ranges from 25.0% to 46.8%. This margin leadership is a key competitive advantage for ASM International.

Hichem M'Saad highlighted the company's competitive position, stating, "As we progress through the year, we expect momentum to build further with ongoing capacity additions as the 2-nanometer technology node accounting for the largest part of advanced logic/foundry sales in 2026."

The company's focus on advanced technology nodes, particularly 2-nanometer and 1.4-nanometer, positions it well for future growth. The transition to 4F² is expected to drive a significant increase in ALD and Epi intensity, expanding the company's served available market and reinforcing its leadership in the industry.

The strong performance and guidance from ASM International have positive implications for its key customers, including TSMC, Samsung, and Intel. The company's focus on advanced technology nodes, particularly 2-nanometer and 1.4-nanometer, aligns with the strategic priorities of these customers.

Hichem M'Saad noted, "As our customers move toward higher volume manufacturing in 2027 and 2028, we expect 1.4 nanometer to become a meaningful driver for ASM." This indicates that TSMC, Samsung, and Intel are likely to increase their investments in advanced technology nodes, driving demand for ASM International's equipment and services.

The tone of the earnings call was generally positive, with a sentiment score of 0.36 and a guidance tone of 0.50. The prepared sentiment score was 0.02, and the QA sentiment score was 0.38, indicating a balanced and confident delivery.

Compared to the previous quarter, the sentiment score improved by 0.08, while the guidance tone decreased slightly by 0.06. The prepared sentiment score dropped significantly by 0.69, but the QA sentiment score increased by 0.14, suggesting that the company was well-prepared to address investor questions.

The uncertainty index increased by 0.6, and the QA evasiveness index decreased by 12.0, indicating that the company provided clear and direct answers to investor questions. The tone history shows a consistent trend of positive sentiment and guidance, reinforcing the company's strong outlook.

ASM International N.V. delivered a strong Q1 2026, with both revenue and EPS beating street estimates. The company's guidance for Q2 and the second half of 2026 indicates continued momentum, driven by advanced technology nodes and capacity expansions. The strong financial performance, competitive position, and positive tone of the earnings call all support a bullish outlook for the company. As the industry moves toward more advanced technology nodes, ASM International is well-positioned to capitalize on these trends and maintain its leadership in the semiconductor equipment market.