Q2 2026 Earnings Summary
Key Financial Metrics
- Quarterly Revenue: Reached €1,003 million, up 15% quarter-over-quarter and 24% year-over-year at constant currency. This marks the first time quarterly revenue surpassed the €1 billion milestone, beating the midpoint of guidance.
- Gross Margin: Remained strong at 51.9%, driven by a favorable product mix.
- Adjusted Operating Margin: Stood at 33.0%, reflecting operating leverage and disciplined cost management.
- Free Cash Flow: Hit a record high of €355 million, supported by solid earnings and working capital normalization.
Operational Highlights & Growth Drivers
- Leading-Edge Logic Demand: Driven by accelerated customer adoption of 2nm GAA processes, alongside initial contributions and market share gains in ALD (notably Molybdenum ALD) and Epitaxy (Epi) for the 1.4nm node.
- AI & Memory Expansion: Robust growth in HBM-related DRAM equipment sales, alongside expanding customer selection for ASMI’s Epi solutions.
- Mature Nodes: Maintained solid equipment demand across mature logic/foundry lines in China.
Guidance & Outlook
- Q3 2026 Guidance: Revenue projected at €1,100 million ±5% at constant currency.
- H2 2026 & Long-Term Targets: H2 2026 revenue expected to grow over 20% compared to H1 2026. Management raised its outlook for 2027 revenue, expecting it to exceed the top end of the previous €3.7–4.6 billion target range.
Sources:
ASM International(ASMI) reports revenue breakdown across two primary dimensions: by nature of business and by customer end-market segment.
1. Revenue Breakdown by Business Stream (Q2 2026)
| Business Stream | Revenue Share (Q2 2026) | Business Overview |
| Equipment Revenue | 79% (€794.3 Million) | Sales of front-end wafer fabrication tools, including Atomic Layer Deposition(ALD), Epitaxy(Epi), Vertical Furnaces, and PECVD systems. Driven by record-high ALD tool shipments. |
| Spares & Services Revenue | 21% (€208.7 Million) | Recurring revenue from spare parts, maintenance, software upgrades, and outcome-based service models across ASMI’s expanding global installed base. |
2. Equipment Revenue Breakdown by Customer Segment (H1 2026)
This metric reflects the proportion of tool equipment sales across end-market applications:
| Customer Segment | Equipment Share (H1 2026) | Business Overview |
| Logic / Foundry | 77% | Primary revenue driver, spanning leading-edge nodes(2nm GAA adoption, 1.4nm Mo ALD/Epi wins) and mature node foundry capacity. |
| Memory | 15% | Driven by high-bandwidth memory(HBM) and advanced DRAM scaling, utilizing ALD for High-k Metal Gates and expanding Epi adoption. |
| Power / Analog / Wafer & Other | 8% | Thermal processing and deposition tools used in automotive, industrial, and power electronics(including Silicon Carbide/SiC). |
Sources:
Key Quarterly Changes (Q2 2026)
- Milestone Revenue: Reached a record €1,003 million (up 24% YoY at constant currency), crossing the €1 billion single-quarter threshold for the first time.
- 2nm GAA Ramp & AI Demand: Accelerated adoption of 2nm GAA technology by leading-edge foundry/logic customers, accompanied by sequential demand upticks in 3nm–7nm nodes driven by CPU and agentic AI deployments.
- 1.4nm Market Share Gains: Secured customer wins in Molybdenum (Mo) ALD for 1.4nm nodes, laying the groundwork for revenue contribution in H2 2026.
- Memory & Service Expansion: HBM-related DRAM demand boosted memory tool sales, while Spares & Services revenue surged 34% YoY.
- Record Free Cash Flow: Achieved a record FCF of €355 million, expanding the cash reserve to €1.18 billion.
Next Quarter Watch Points (Q3 2026)
- Guidance Execution: Management guides Q3 revenue at €1,100 million ±5% (at constant currency).
- Supply Chain Pressures: Monitoring equipment delivery schedules amid industry-wide supply chain tightness and rising input cost pressures.
- Mature Node Moderation: Tracking the expected H2 cooling in China’s mature logic/foundry spending following heavy H1 procurement.
- Revenue Recognition in Advanced Nodes: Validating actual revenue recognition from HBM DRAM scaling and initial 1.4nm Mo ALD tool shipments.
Future Outlook
- H2 2026 Acceleration: H2 2026 revenue is projected to grow >20% compared to H1 2026.
- Upward 2027 Revenue Revision: Driven by strong order momentum in 2nm/1.4nm GAA nodes and advanced memory, ASMI expects 2027 revenue to exceed the top end of its previously guided €3.7–€4.6 billion target range.
- CapEx Investment: Full-year CapEx is expected to rise above €250 million to expand manufacturing and R&D facilities in South Korea and the United States.
Sources:
Back to ASM