ASM International NV Q3 2026 Earnings Recap

ASM’s shares rose 6.2% after earnings, with record Q3 revenue at the upper end of the guided range and continued strength in advanced logic and memory. The report also showed stable gross margin and improving operating leverage, while management flagged supply-chain pressure as it works to meet demand in 2027 and beyond.

Key Takeaways

• Revenue was a record $1.16 billion, up 44% year-on-year at constant currencies and 14% sequentially; equipment revenue grew 48%, led by ALD demand.
• Advanced logic/foundry led sales: 1.4-nanometer made its first solid contribution and represented a significant double-digit percentage of segment sales; memory also increased strongly, with most sales tied to high-performance DRAM for HBM.
• Gross margin was 52%, versus 51.9% in Q2; operating margin increased to 33.4% from 33.0%, and SG&A fell to 7.6% of revenue from 7.9%.
• Free cash flow was $313 million, below Q2’s record $355 million but well above $139 million a year earlier. Cash ended the quarter at EUR 1.3 billion, and ASM announced a share buyback of up to EUR 300 million.
• Management cited increasing supply-chain pressure and said it is working with suppliers to secure capacity and critical components for demand in 2027 and beyond; Q4 working capital is expected to rise as activity levels and inventory increase.