ASML Holding NV (ASML  ) reported its first-quarter results ahead of expectations and raised its guidance for 2026. While the company continues to generate strong growth in its EUV (Extreme Ultraviolet) segment, it now expects its non-EUV business to deliver growth in 2026, according to Goldman Sachs.

The ASML Holding Analyst: Analyst Alexander Duval maintained a Buy rating and price target of €1,450 ($1,709).

The ASML Holding Thesis: The company reported revenues and EBIT (earnings before interest and tax) above consensus, Duval said in the note.

"Management noted that orders remained strong and semis demand continues to strengthen, driven primarily by AI infrastructure investment, driving robust demand across both advanced Logic/Memory," the analyst wrote.

With customers being in a race to build AI hardware, he mentioned that capacity had maxed out for:

  • Memory - Companies have already reserved almost all available memory production capacity for 2026.
  • Logic (Processors) - Customers are moving fast to build the next generation of chips (2nm) while simultaneously expanding older chip production to keep up with AI needs.
Management raised their 2026 revenue guidance to €36-€40 billion, from their prior projection of €34-€39 billion, while keeping their gross margin outlook unchanged at 51%-53%, the analyst stated. The latest revenue guidance implies around 16% growth at the mid-point, with the high-end of the range representing around 22% growth, he added.

ASML's latest guidance "already embeds the potential impacts of the ongoing discussions around export restrictions which is a positive in our view," Duval wrote.

ASML continues to see strong growth in its EUV segment and aims to achieve around 60 EUV tools in 2026 and expand this to around 80 tools in 2027, which eases investor concerns about the company's ability to ramp capacity to meet strong demand, he further said.

The company also expects growth in its non-EUV business this year, versus its prior projection that the business would remain flat, he said.

ASML Price Action: ASML Holding shares were down 4.50% at $1449.94 at the time of publication on Wednesday, according to Benzinga Pro data.