ASML reported record third-quarter 2026 net sales of €11.7 billion as strong semiconductor equipment demand, particularly related to artificial intelligence investment, supported higher revenue, margins, and earnings. The company generated net income of €5.0 billion and a gross margin of 57.5%, with sales reaching the high end of its guidance.
Third-quarter sales rose substantially from €9.3 billion in the second quarter, while net income increased from €2.9 billion to about €5.0 billion. Basic earnings per share increased to €12.95 from €7.59, and gross margin expanded to 57.5% from 54.0%. ASML sold 113 new lithography systems during the quarter, up from 86 in the prior quarter, along with eight used systems.
Installed Base Management sales reached €3.3 billion, exceeding guidance as customers continued investing in productivity upgrades. ASML said the strong performance helped gross margin exceed prior expectations.
Demand visibility is also strengthening further out. ASML said customers continue to raise their short- and medium-term equipment demand forecasts, driven primarily by expectations about the size and duration of AI-related investments. Some customers have already expressed interest in placing equipment orders for 2029 and 2030.
The strength of the order pipeline is prompting ASML to evaluate additional manufacturing capacity. Based on current plans, the company now expects its supply capacity in both 2027 and 2028 will not be sufficient to fully meet customer demand. ASML is therefore investigating ways to increase its 2028 capacity beyond the 30% expansion it had previously communicated while also providing customers with additional wafer capacity through productivity upgrades.
For the fourth quarter, ASML expects net sales of €14.2 billion to €15.2 billion, with a gross margin of about 57%. Full-year 2026 net sales are expected to reach between €44 billion and €45 billion, with a gross margin of approximately 56%.
ASML also continued returning capital to shareholders. The company repurchased approximately €4.1 billion of shares during the third quarter under its 2026 to 2028 share buyback program. An interim dividend of €1.88 per ordinary share is scheduled to be paid on November 4, 2026.
KEY QUOTES:
“In the third quarter we reported a record total net sales of €11.7 billion, towards the high end of our guidance, reflecting the strong execution of our ramp-up. Installed Base Management sales came in above guidance at €3.3 billion as a result of the continued strong demand for productivity upgrades. This drove the gross margin above guidance at 57.5%.
Our customers continue to increase their short- and medium-term equipment demand forecasts with us, driven primarily by their views on the size and duration of AI-related investments. In light of their demand visibility, some customers are expressing an interest in placing orders with us for 2029 and even 2030.
With such strong visibility and an order book momentum that continues to increase quarter on quarter this year, we now expect that our supply as currently planned for both 2027 and 2028 will not fully meet the demand of our customers. Given this, we are investigating ways to increase capacity for 2028 beyond the 30% increase we previously communicated. In addition, we continue to provide significant wafer capacity to our customers through our productivity upgrade portfolio.
We expect fourth-quarter 2026 total net sales between €14.2 billion and €15.2 billion, with a gross margin around 57%. We expect R&D costs of around €1.2 billion and SG&A costs of around €0.4 billion. We expect total net sales for 2026 to be between €44 billion and €45 billion, with a gross margin around 56%.”
Christophe Fouquet, President And Chief Executive Officer Of ASML
