ASML Holding N.V. delivered a strong third-quarter 2026 earnings report on Wednesday, posting net sales of €11.66 billion and net income of €4.96 billion. The profit figure easily beat the €4.13 billion analysts had expected, while revenue was roughly in line with projections. Gross margin climbed to 57.5% from 54% in the prior quarter, and earnings per share reached €12.95, well above the estimated €10.60.
The company raised its full-year 2026 outlook for the third time this year, now forecasting net sales of €44 billion to €45 billion, up from the previous €43 billion to €45 billion range. ASML also guided for a full-year gross margin of around 56%. For the fourth quarter, it expects net sales between €14.2 billion and €15.2 billion and a gross margin of approximately 57%.
Chief Executive Officer Christophe Fouquet highlighted that customers continue to raise their equipment demand forecasts, driven by the size and duration of AI-related investments. Some customers are now seeking orders for 2029 and even 2030. Fouquet said planned supply for 2027 and 2028 will not fully meet demand, and the company is exploring ways to exceed its planned 30% capacity increase in 2028.
ASML shares rose following the results. The U.S.-listed ADR gained 1.6% to $1,744.67 in premarket trading, while the Amsterdam listing climbed 1.75% to €1,536. The results came as the PHLX Semiconductor Index had fallen for a fifth straight day and was down nearly 5% in October.
China remained a key focus. ASML cannot ship its most advanced tools to China and expects China to account for about 20% of 2026 sales, after making a similar forecast for 2025 and ending near one-third. Chief Financial Officer Roger Dassen said the company opposes the proposed Match Act in Congress, calling it a bad idea that would accelerate China’s domestic technology efforts. The bill would prohibit DUV lithography sales to China and servicing of already installed machines. China has represented roughly 70% of ASML’s DUV immersion unit sales by volume in recent years.
Analyst reactions were mixed. Jefferies said the 2027 and 2028 increase was broadly expected and sees sector multiples contracting further. Bank of America analyst Didier Scemama maintained a Buy rating and a $2,915 price target, saying a 5% rise in average selling prices could lift earnings per share growth to around 10%.
