ASM Revenue Jumps 45% to €1,159.4 Million, Sees More Than €5.7 Billion in 2027
Key Facts
ASM International said on October 27 that third-quarter revenue reached a record €1,159.4 million, up 45% year on year at reported exchange rates and 44% excluding currency effects. Revenue was above €1,003.1 million in the second quarter and €800.0 million in the same period last year. Chief Executive Hichem M'Saad said revenue rose 45% to a record, at the upper end of the company's previous guidance. The performance comes as ASM says the expansion of AI infrastructure is increasing capacity needs in the semiconductor industry, particularly in advanced technologies. It added that capacity across its customer base remains limited and that customers are ramping up production quickly to meet demand.
Advanced logic and foundries were the main drivers of revenue and growth during the quarter, according to the company statement. Investment in 2-nanometer technologies continued, alongside increased activity in the 3-to-5-nanometer range. Investment in 1.4-nanometer technologies made its first material contribution to sales, signaling broader activity across multiple generations of chipmaking technology. Memory sales also rose sharply, particularly DRAM linked to high-bandwidth memory (HBM). Mature logic and foundry sales remained resilient, driven mainly by the Chinese market, ASM said.
Revenue growth was reflected in some profitability metrics, with gross margin at 52.0%, compared with 51.9% in the previous quarter and the same period last year. Adjusted operating margin rose to 33.4% from 30.9% a year earlier, while adjusted operating profit increased 56% year on year. M'Saad said gross margin remained strong and the company increased adjusted operating profit alongside sales growth. Adjusted net profit was €315.4 million, compared with €206.2 million in the third quarter of 2025. Reported net profit, by contrast, fell to €308.1 million from €384.1 million in the same period.
ASM expects fourth-quarter revenue of €1,230 million, with a 5% margin either way, at constant exchange rates. That compares with analysts' average forecast of €1.18 billion for the quarter, according to an LSEG poll cited by Reuters. Based on its fourth-quarter guidance, the company expects revenue growth of about 35% in 2026 and an increase of more than 40% in equipment revenue for the year. For 2027, ASM expects revenue of more than €5.7 billion at constant currency. It said that level would meet its 2030 revenue target three years early; analysts' average forecast for 2027 revenue is about €5.41 billion, according to an LSEG poll.
The company expects advanced logic and foundries to be its strongest growth drivers in 2027, with memory also growing strongly. The outlook is based on continued demand for advanced manufacturing equipment, while ASM said its projections for some other sectors assume no material changes in the regulatory environment. Michael Roeg of Degroof Petercam described the results as a "triple beat," referring to third-quarter revenue and quarterly and annual guidance. ASM supplies semiconductor wafer processing equipment, focusing on deposition equipment and a broad portfolio of atomic layer deposition (ALD) applications. In trading of the stock listed under ticker ASMiy, EL7 data showed a close of $831.11 on October 20, then $856.99 on October 21, $785.42 on October 22, $777.43 on October 23, and $784.32 on October 26.
On capital allocation, ASM's board approved a new share buyback program of up to €300 million. The program follows the completion of a previous program that repurchased 185,522 shares at an average price of €808.53 per share. The company is scheduled to hold a call and webinar to discuss its third-quarter results and outlook on October 28, 2026, at 15:00 Central European Time. The event follows the publication of results on October 27, with upcoming guidance focused on fourth-quarter revenue and the growth path in 2027. Fourth-quarter results will be the next point of comparison between the company's guidance and analysts' average estimates.