ASML Holding reported its third-quarter 2026 results, surpassing profit forecasts while its net sales came in marginally below expectations. The Dutch company, a key supplier of lithography machines essential for chip manufacturing, posted a net profit of EUR 4.96 billion, exceeding the EUR 4.1 billion predicted by analysts.
Revenue Miss, Profit Beat
ASML’s third-quarter revenue stood at EUR 11.66 billion, slightly under the EUR 11.72 billion anticipated by the market. However, the company’s net profit significantly beat consensus, reaching EUR 4.96 billion against an expected EUR 4.1 billion. The gross margin was reported at 57.5%, also higher than the approximate 56.1% forecast. This performance suggests strong profitability and efficient operations across its business, as detailed by XTB.com.
The company’s chief executive, Christophe Fouquet, had previously guided for net sales in the range of €11.0 billion to €12.0 billion and a gross margin of 55% to 57% for the quarter. ASML’s second-quarter sales were €9.3 billion, with basic EPS at €7.59.
Installed Base Management and System Sales
A notable contributor to the strong results was the Installed Base Management (IBM) segment, which generated EUR 3.3 billion in sales, exceeding ASML’s earlier assumptions. According to XTB.com, this segment, which includes services, upgrades, and options on machines already sold, increases the proportion of recurring revenue and reduces the company’s reliance on new machine delivery cycles.
ASML sold 113 new lithography systems and 8 used systems in the third quarter, an increase compared to 86 new and 5 used systems in the previous quarter, indicating a clear acceleration in operational activity.
Outlook and AI Sector Demand
ASML raised its 2026 guidance for the third consecutive quarter, narrowing its expected sales range and now forecasting a full-year gross margin of around 56%. The company expects its EUV business to grow by more than 45% this year, with the non-EUV segment projected to expand by around 20% year over year. For the fourth quarter, ASML forecasts sales between EUR 14.2–15.2 billion and a gross margin of approximately 57%.
The report confirmed a significant increase in demand from the AI sector, suggesting that demand is increasingly visible in sales, margins, and upgraded forecasts, as noted by AskTraders.com. Major customer TSMC reported record third-quarter revenue, up about 50% from a year earlier.
The company indicated that some customers are showing interest in equipment deliveries as far out as 2029 and 2030. ASML acknowledged that planned production capacity for 2027 and 2028 may not be sufficient to meet projected customer demand, and it is evaluating further expansion beyond its current 30% planned increase.
Market Reaction
Following the announcement, ASML’s shares saw an initial fall of around 4%. This reaction, even with strong profit figures and raised guidance, was attributed by XTB.com to demanding valuation levels where even minor deviations in sales momentum can impact market sentiment. The article on Investing.com.uk noted that ASML stock was trading down 1.6% in Amsterdam and was approximately 9.5% below its June high, coinciding with a sell-off in Korean technology shares.
Frequently Asked Questions
What was ASML’s Q3 revenue?
ASML’s third-quarter revenue was EUR 11.66 billion, slightly below the EUR 11.72 billion expected.
Did ASML’s profit beat expectations?
Yes, ASML’s net profit reached EUR 4.96 billion, clearly beating the EUR 4.11 billion forecast.
What did ASML’s guidance for 2026 indicate?
ASML improved its 2026 guidance for the third consecutive quarter, expecting a full-year gross margin of around 56%.
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