ASML Boosts Shareholder Returns Amid Record Order Backlog

ASML to boost dividend 17% as strong AI chip demand fills orders through 2027. Share buybacks continue, with Q1 2026 results due April 15.

The Dutch semiconductor equipment giant ASML is set to increase its dividend significantly ahead of its upcoming quarterly report. Shareholders will vote on a proposed 17% dividend hike at the Annual General Meeting in April, a move supported by an order book filled through 2027. This comes as the company continues its ongoing share repurchase initiative.

Strong Fundamentals Underpin Payouts

The fundamental driver for these enhanced shareholder returns is sustained, high demand from the chipmaking sector, particularly for AI and memory semiconductors. In mid-March, the Belgian research center imec installed ASML's newest High-NA EUV lithography system. This advanced machinery enables the production of smaller, more energy-efficient components. Industry leaders, including Intel and SK Hynix, are already integrating this next-generation technology into their manufacturing lines.

For a capital equipment manufacturer, ASML's revenue visibility is exceptionally clear. Its order backlog stood at €38.8 billion at the end of 2025. This figure not only covers the full sales forecast for 2026 but also fully books the company's capacity for its extreme ultraviolet (EUV) systems through the end of 2027.

Capital Return Program Progresses

The company's capital return strategy remains on track. In late March, as part of its €12 billion program running through the end of 2028, ASML repurchased shares worth approximately €125 million. These consistent buybacks provide support to the share price, which has advanced nearly 19% since the start of the year to a recent level of €1,175.20.

Investors are also poised to receive a larger direct income payment. For the completed 2025 fiscal year, management has proposed a total dividend of €7.50 per share. The final installment of €2.70 is scheduled for approval following the AGM on April 22, with payment set for May 5.

First Quarter 2026 Preview

All eyes are now on the quarterly results scheduled for release on April 15, 2026. For the first quarter, company guidance includes the following targets:

• Net sales: €8.2 to €8.9 billion
• Gross margin: 51% to 53%
• Research and development costs: approximately €1.2 billion

Looking at the full year 2026, based on the current order book, the corporation anticipates revenue in a range between €34 billion and €39 billion.