ASML reports record quarterly sales, warns capacity will lag AI demand

ASML reported record third-quarter revenue of €11.66 billion, a 55% increase from a year earlier, while warning that its planned production would not meet customer demand in 2027 and 2028. The Netherlands-based semiconductor equipment maker said AI investment was driving additional orders.

The company increased its 2026 revenue forecast to €44-45 billion from €43-45 billion. It now anticipates a gross margin of around 56%, compared with its previous range of 54-56%, and projects €14.2-15.2 billion in fourth-quarter sales.

Quarterly net income rose to more than twice its year-earlier level, reaching €5 billion. That included a €510 million gain from ASML’s holdings in other companies. Gross margin exceeded the company’s forecast at 57.5%, with maintenance and upgrades of installed equipment contributing €3.3 billion in revenue.

ASML said customers continued to lift their equipment demand estimates based largely on their expectations for the scale and duration of AI investment. Some were seeking to reserve machines for delivery in 2029 or 2030.

In July, ASML announced plans for a 30% capacity increase in 2027 covering low-NA extreme ultraviolet (EUV) equipment and deep ultraviolet (DUV) immersion machines. It was also considering another 30% expansion in 2028. CEO Christophe Fouquet said the company was examining how to expand 2028 capacity beyond that previously outlined increase.

ASML is the sole manufacturer of EUV systems, which are used to produce the most advanced chips.