ASM reports third quarter 2026 results

ASM delivers record Q3 results, raises 2027 outlook, and launches €300 million buyback.

What the company is saying

ASM International N.V. reports record third quarter 2026 revenue of €1,159 million, reaching the upper end of its guidance, and highlights a 44% year-on-year increase at constant currencies. The company attributes this growth to strong AI-related demand, accelerated advanced logic/foundry sales—including a first solid contribution from 1.4nm investments—robust memory sales, and continued demand in mature logic/foundry markets. Gross margin remained stable at 52.0%, and adjusted operating margin was 33.4%, with adjusted net earnings up €109 million year-on-year to €315 million. CEO Hichem M’Saad emphasizes solid execution amid supply chain constraints and points to the launch of XP8® Vertos™ Flowable Carbon as a technological milestone already in high-volume manufacturing. ASM projects Q4 2026 revenue of €1,230 million +/-5% and expects 2027 revenue to exceed €5.7 billion, achieving its 2030 target three years early. The Management Board has authorized a new share buyback program of up to €300 million, following the completion of a €150 million program in Q3 2026.

What the data suggests

The disclosed numbers show ASM achieved €1,159 million in Q3 2026 revenue, up 44% year-on-year at constant currencies and at the upper end of guidance. Gross margin was 52.0%, and adjusted operating margin was 33.4%, both stable or slightly improved versus prior periods. Adjusted net earnings rose €109 million year-on-year to €315 million, with net earnings at €308.1 million. Q3 2026 gross profit was €603.2 million, and operating result was €378.9 million. The company completed a €150 million buyback, repurchasing 185,522 shares at an average price of €808.53, and authorized a new €300 million buyback. Q4 2026 revenue is guided at €1,230 million +/-5%, and full-year 2026 revenue is expected to increase by approximately 35% at constant currencies, with equipment revenue up more than 40%. The 2027 revenue outlook is above €5.7 billion, implying ASM expects to reach its 2030 target early. The main growth drivers are advanced logic/foundry (notably 2nm and 1.4nm), strong memory sales, and stable mature logic/foundry demand. While qualitative claims about technology launches and segment drivers are made, no segment-level revenue breakdown is provided. The financial disclosures are detailed and transparent for headline metrics, supporting the narrative of strong operational and financial momentum.

Analysis

The announcement is highly positive, with record Q3 2026 revenue (€1,159 million), a 44% year-on-year increase, and strong profitability metrics (gross margin 52.0%, adjusted operating margin 33.4%, adjusted net earnings €315 million). These realised results are supported by detailed numerical disclosures, including historical comparatives and clear evidence of operational and financial progress. While there are forward-looking statements about Q4 2026 and 2027 revenue, the majority of key claims are realised and substantiated. The only areas with less granularity are qualitative statements about product launches and segment drivers, but these do not materially inflate the overall narrative. There is no evidence of exaggerated tone or narrative inflation; the language is proportionate to the disclosed results. No large capital outlay is paired with long-dated, uncertain returns—share buybacks are funded from a strong cash position and are not speculative.

Risk flags

• ●Supply chain constraints are acknowledged as ongoing and tightening, which could impact the company's ability to meet shipment and revenue guidance if disruptions worsen.
• ●The forward-looking revenue targets for 2027 and the claim of achieving the 2030 goal early rely on continued strong demand in advanced logic/foundry and memory; any cyclical downturn or regulatory change could affect these projections.
• ●No segment-level revenue or margin figures are disclosed for new technology nodes (e.g., 1.4nm, 2nm), limiting visibility into the sustainability and breadth of growth drivers.
• ●The share buyback program, while funded from a strong cash position, represents a significant capital allocation; if market conditions change or operational needs arise, flexibility could be constrained.
• ●The launch of XP8® Vertos™ Flowable Carbon is described as a milestone, but no quantitative adoption or customer data is provided, making it difficult to assess its commercial impact.

Bottom line

ASM International N.V. posts record Q3 2026 results, with €1,159 million in revenue and strong profitability, driven by AI-related demand and advanced node adoption. The company is guiding for continued growth in Q4 2026 and expects 2027 revenue to exceed €5.7 billion, reaching its long-term target three years early. A new €300 million share buyback signals confidence in cash generation and financial strength, following the completion of a €150 million program. While headline financials are robust and guidance credibility is high, investors should watch for any supply chain disruptions and seek more granular disclosure on segment contributions, especially for new technologies. The most important takeaway is ASM's accelerating growth trajectory and its ability to translate industry tailwinds into realized financial performance.

Announcement summary

(NASDAQ:ASML) ASM International N.V. reported record third quarter 2026 revenue of €1,159 million, reaching the upper end of its guidance, driven by strong AI-related demand and robust customer capacity ramps. Q3 2026 revenue increased 44% year-on-year at constant currencies, with advanced logic/foundry sales accelerating, including a first solid contribution from 1.4nm investments, strong growth in memory sales, and continued robust demand in the mature logic/foundry market. Gross margin for Q3 2026 remained stable at 52.0%, while adjusted operating margin was 33.4%. Adjusted net earnings increased by €109 million year-on-year to €315 million. The company projects Q4 2026 revenue to be €1,230 million +/-5% at constant currencies. For 2027, ASM expects revenue to exceed €5.7 billion at constant currencies, achieving its 2030 revenue target three years ahead of plan. The Management Board authorized a new share buyback program of up to €300 million, reflecting ASM’s strong cash position and financial performance. The previous share buyback program of up to €150 million, announced on March 3, 2026, was completed in Q3 2026, with 185,522 shares repurchased at an average price of €808.53. Q3 2026 gross profit was €603.2 million, operating result was €378.9 million, and net earnings were €308.1 million. Adjusted operating result for Q3 2026 was €386.7 million, and adjusted net earnings were €315.4 million. Year-on-year revenue growth as reported was 45% in Q3 2026, 20% in Q2 2026, and 3% in Q3 2025. Year-on-year revenue growth at constant currency was 44% in Q3 2026, 24% in Q2 2026, and 8% in Q3 2025. Gross margin was 51.9% in both Q2 2026 and Q3 2025. Operating margin was 32.7% in Q3 2026, 32.2% in Q2 2026, and 30.3% in Q3 2025. Adjusted operating margin was 33.4% in Q3 2026, 33.0% in Q2 2026, and 30.9% in Q3 2025. The company launched XP8® Vertos™ Flowable Carbon, the industry’s first PECVD flowable carbon film technology, already deployed in high-volume manufacturing. Advanced logic/foundry was the main driver of revenue and growth in Q3 2026, supported by strong investment in 2nm and increased activity at 3nm to 5nm, as well as the first solid sales contribution from 1.4nm. Memory sales, particularly in HBM-related DRAM, increased strongly. Mature logic/foundry sales, mainly driven by the Chinese market, remained robust. For full year 2026, revenue is expected to increase by approximately 35% at constant currencies, with equipment revenue expected to grow by more than 40%. Advanced logic/foundry is expected to be the strongest growth driver in 2027, with further increases in 2nm-related sales and strong momentum in 1.4nm. The company confirmed a solid double-digit increase in its served available market at 1.4nm compared with 2nm, together with higher market share. Memory is also expected to show strong growth, while mature logic/foundry sales are expected to remain relatively stable and recovery in power/analog/wafer segments is expected to strengthen in 2027. ASM International N.V. is headquartered in Almere, the Netherlands, with facilities in the United States, Europe, and Asia.

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