ASM International beats revenue estimates, issues strong outlook as chip demand holds

ASM International lifted its second-quarter revenue outlook to about €980 million, well above the €883.9 million expected by analysts, easing fears that the semiconductor equipment boom was losing steam. First-quarter revenue also came in ahead of forecasts at €862.5 million versus €828.5 million, reinforcing the view that demand for chipmaking tools remains resilient.

The Dutch equipment maker said first-quarter gross margin was 53.3%, while adjusted operating margin reached a quarterly record of 33.1%. Adjusted net earnings rose by €54 million from a year earlier. ASM said the second-quarter figure, at constant currency, points to revenue of €980 million plus or minus 5%, and it expects the second half of 2026 to be stronger than the first half.

The forecast carried extra weight because ASM also said it will stop reporting quarterly bookings, arguing that the numbers are too volatile and distorted by timing effects to provide useful short-term signals. That decision could have unsettled investors if the outlook had been weak. Instead, the strong guidance shifted attention back to demand. Michael Roeg of Degroof Petercam said the results left him unconcerned about the end of bookings disclosures.

Chief Executive Hichem M'Saad said customers were not only spending on today’s most advanced technology, but also preparing production lines for the next generation of chips, including pilot-line work for the 1.4nm node expected in the second half of the year. He said those chips could eventually be used in products from Nvidia and Apple, a sign that leading-edge investment is still broadening rather than narrowing.

ASM’s latest message also pointed to a rebound in mature logic and foundry sales in China, alongside continued AI-driven demand. That combination matters because it suggests the spending cycle is being supported by more than one customer group: advanced-node manufacturers, AI-linked supply chains and China-related demand are all contributing. In a market that has been highly sensitive to any sign of slower capital spending, that breadth is a stronger signal than a single-quarter beat.

The timing also matters. ASM released the results after the European market close on April 21, with its earnings call scheduled for April 22 at 3 p.m. CET. The company’s upbeat outlook follows a similar raise from ASML the prior week, another sign that the capital spending cycle in advanced semiconductor equipment is still intact for now.