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Research Alert: Asml Beats And Raises On Impressive Memory Demand; China Exposure Down Sharply

-- CFRA, an independent research provider, has providedwith the following research alert. Analysts at CFRA have summarized their opinion as follows:

ASML posted Q1 2026 sales of EUR8.77B (+13% Y/Y), beating consensus EUR8.68B, with EPS of EUR7.15 (+19% Y/Y) surpassing consensus EUR6.62 by 8%. Gross margin of 53.0% hit the high end of guidance (51%-53%) as the high-margin Installed Base business outperformed expectations, likely helped by robust upgrade activity (which should continue). Memory contributed 51% of net system sales (vs. 30% in Q4) as demand continues strengthening, supported by AI demand, the ongoing memory shortage, and rising EUV penetration. 2026 revenue guidance was upped to ~EUR38B (+16.3%) from EUR36.5B, due to an improved non-EUV outlook despite elevated uncertainty. Management expects EUV capacity expansion to 60+ Low NA systems in 2026 (vs. ~50 in 2025) and 80+ by 2027, which we think provides a major growth lever beyond pricing/throughput progress that drove results in 2025. China exposure dropped meaningfully to 19% of Q1 sales (vs. 36% in Q4), while South Korea surged to 45% (vs. 22%), reflecting accelerating memory maker demand.

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Research Alert: Asml Beats And Raises On Impressive Memory Demand; China Exposure Down Sharply | FINWIRES