ASML Holding NV reported record quarterly net sales of €11.7 billion for the third quarter of 2026, alongside net income of €5.0 billion, as strong demand for semiconductor manufacturing equipment and productivity upgrades boosted its financial performance.
The Netherlands-based company announced its results on October 14, reporting total net sales of €11.662 billion, up from €9.326 billion in the second quarter. Gross profit rose to €6.7 billion from €5.035 billion, while the gross margin increased from 54% to 57.5%, exceeding the company’s guidance.
Net income reached €4.96 billion, compared with €2.918 billion in the previous quarter. Basic earnings per share increased to €12.95 from €7.59.
Strong Equipment Demand Drives Quarterly Growth
ASML’s third-quarter performance reflected continued demand for semiconductor manufacturing technology and services. The company sold 113 new lithography systems during the quarter, compared with 86 in the second quarter. Sales of used lithography systems also increased, rising from five units to eight.
Installed Base Management sales, which include services and productivity upgrades for existing equipment, reached €3.289 billion, up from €2.762 billion in the previous quarter. According to Chief Executive Officer Christophe Fouquet, these sales exceeded expectations as customers continued to seek upgrades to improve productivity.
Fouquet said the company’s customers were increasing their short- and medium-term equipment demand forecasts, driven primarily by expectations surrounding the scale and duration of artificial intelligence-related investments.
He added that some customers were already expressing interest in placing orders for 2029 and 2030, reflecting growing visibility into future demand.
ASML Considers Expanding Production Capacity
With its order momentum strengthening throughout 2026, ASML expects its currently planned supply for both 2027 and 2028 to fall short of customer demand.
The company is therefore exploring ways to expand capacity for 2028 beyond the previously communicated 30% increase. It also plans to continue providing additional wafer capacity to customers through its productivity upgrade portfolio.
ASML ended the third quarter with €12.735 billion in cash, cash equivalents and short-term investments, compared with €7.582 billion at the end of the second quarter.
Fourth-Quarter and Full-Year 2026 Outlook
ASML expects total net sales for the fourth quarter of 2026 to range between €14.2 billion and €15.2 billion, with a gross margin of approximately 57%. The company also anticipates research and development costs of around €1.2 billion and selling, general and administrative expenses of approximately €400 million.
For the full year, ASML forecasts total net sales between €44 billion and €45 billion, with a gross margin of around 56%.
The outlook reflects the company’s expectations for continued demand growth, particularly as customers increase investments linked to artificial intelligence and assess their longer-term semiconductor equipment requirements.
