ASML Holding NV’s annual meeting this week delivered a powerful one-two punch for investors, combining a substantial dividend increase with an aggressive share repurchase plan. The Dutch semiconductor equipment giant, riding a wave of strong quarterly results, secured shareholder approval to significantly boost returns.
The total dividend for fiscal 2025 was set at €7.50 per share, marking a 17 percent increase from the prior year. This final payout of €2.70 per share follows three interim dividends of €1.60 each. The company’s distribution has grown steadily from €5.50 per share in 2021.
Alongside the dividend, shareholders granted the board authority to buy back up to ten percent of issued share capital through October 2027. This move supports a fresh €12 billion repurchase program covering 2026 through 2028. ASML has already been active, purchasing approximately 0.9 million shares for about €1.1 billion in the first quarter of 2026 alone. The board also received powers to cancel up to ten percent of shares and to issue new shares for purposes like acquisitions, capped at five percent of capital.
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This generous capital return policy is underpinned by robust operational performance. First-quarter figures revealed net sales of €8.8 billion and earnings per share of €7.15, surpassing analyst expectations. The company’s gross margin stood at 53 percent. Buoyed by this start, management raised its full-year 2026 revenue outlook to a range of €36 billion to €40 billion, up from a prior forecast of €34 billion to €39 billion. Executives cited sustained high demand, particularly for performance upgrades and services related to its installed base of machines, driven by the urgent need for AI chip capacity.
Despite the operational strength, geopolitical shadows linger. A bipartisan group of US lawmakers has proposed legislation that would prohibit ASML from selling its deep ultraviolet (DUU) lithography systems to Chinese chipmakers. The bill is currently working its way through the legislative process in Washington. Company management emphasized that the wide range of its updated annual forecast already accounts for potential scenarios involving export controls. Notably, sales to China accounted for just 19 percent of system sales in Q1, a sharp drop from 36 percent in the prior quarter.
The company’s shares closed at €1,245 following the meeting, trading just under four percent below their 52-week high. The stock has advanced roughly 26 percent since the start of the year. Looking beyond immediate headwinds, ASML maintains ambitious long-term targets, aiming for annual revenue of up to €60 billion by 2030 alongside expanding margins. The next key test for the investment thesis will arrive with the release of second-quarter results in July.
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