- ASML (NASDAQ:ASML) reported Q3 2026 net sales of €11.7 billion and net income of €5.0 billion, driven by strong demand for advanced chipmaking equipment
- The company said AI-related semiconductor demand remains robust, with customers placing orders years in advance to secure production capacity
- Management expects continued growth, forecasting Q4 sales of €14.2 billion to €15.2 billion and full-year 2026 revenue of €44 billion to €45 billion
- ASML stock (NASDAQ:ASML) last traded at US$1,626.81
Demand to stay elevated until at least 2030
While some AI stocks have faced increased scrutiny in recent months amid concerns about valuations and long-term demand, semiconductor equipment giant ASML Holding (NASDAQ: ASML) continues to report strong business momentum. The company’s latest quarterly results suggest that demand for advanced chipmaking technology remains robust, supported by ongoing investment in AI infrastructure and next-generation semiconductor manufacturing.
ASML, whose lithography systems are a critical part of producing advanced semiconductors, reported a significant jump in both revenue and profitability during the third quarter of 2026. The results also point to strong customer confidence, with management indicating that orders are being placed years in advance to secure manufacturing capacity.
This article is a journalistic opinion piece that has been written based on independent research. It is intended to inform investors and should not be taken as a recommendation or financial advice.
“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,” ASML’s president and CEO, Christophe Fouquet explained in a news statement. “In light of their demand visibility, some customers are expressing an interest in placing orders with us for 2029 and even 2030.”
Q3 revenue climbs to €11.7 billion
For the third quarter of 2026, ASML generated total net sales of €11.7 billion, up substantially from €9.3 billion in the second quarter. The increase reflects strong demand across the company’s product portfolio and continued investment by semiconductor manufacturers seeking to expand advanced chip production capacity.
The company sold 113 new lithography systems during the quarter, compared with 86 in the previous quarter. Sales from its Installed Base Management segment, which includes service and upgrade revenue, also increased to €3.3 billion from €2.8 billion.
The growth highlights the strategic position ASML occupies within the semiconductor supply chain. Its leading-edge lithography equipment is widely regarded as essential for manufacturing the advanced chips used in AI accelerators, data centres, high-performance computing systems, and other next-generation technologies.
Profitability reaches new highs
ASML’s revenue growth translated into a sharp increase in earnings.
The company reported gross profit of €6.7 billion, resulting in a gross margin of 57.5%, up from 54.0% in the prior quarter. The margin expansion suggests that product mix, operational efficiencies, and continued demand for advanced systems contributed positively to profitability.
Meanwhile, net income surged to €5.0 billion, compared with approximately €2.9 billion in the second quarter. Basic earnings per share increased to €12.95, up from €7.59 in the prior quarter.
The results demonstrate the company’s ability to convert rising demand into meaningful earnings growth, a key metric investors often watch when evaluating high-growth technology businesses.
AI remains a major growth driver
One of the most closely watched aspects of ASML’s business is the level of demand coming from customers building capacity for AI-related chips.
Although investors have become increasingly cautious about whether the rapid growth seen throughout the AI sector can continue indefinitely, ASML’s outlook suggests that major semiconductor manufacturers remain committed to expanding production. The need for advanced processors used in AI applications continues to drive investment throughout the supply chain, benefiting equipment providers like ASML.
Management has indicated that customers are securing orders well in advance, reflecting both the complexity of semiconductor manufacturing and expectations that demand for leading-edge chip production will remain strong for years.
Because ASML’s equipment plays a foundational role in enabling chipmakers to produce more advanced semiconductors, the company remains closely tied to long-term trends in AI infrastructure spending.
Strong guidance for the final quarter
Looking ahead, ASML expects momentum to continue into the fourth quarter.
The company forecasts Q4 2026 total net sales between €14.2 billion and €15.2 billion, with gross margin expected to remain around 57%.
For the full year, management now expects 2026 total net sales between €44 billion and €45 billion, accompanied by a gross margin of approximately 56%.
Those projections suggest ASML is on track for another record year, supported by continued demand from semiconductor manufacturers investing in both advanced and mature process technologies.
Capital returns continue
ASML also continued returning capital to shareholders during the quarter.
The company purchased approximately €4.1 billion of shares under its ongoing 2026-2028 share repurchase program. In addition, it announced an interim dividend of €1.88 per ordinary share, payable on November 4, 2026.
The combination of share buybacks and dividends reflects ASML’s strong cash generation capability. At the end of the third quarter, the company held €12.7 billion in cash, cash equivalents, and short-term investments, up from €7.6 billion at the end of the previous quarter.
The bottom line
ASML’s third-quarter results provide another indication that investment in semiconductor manufacturing remains strong despite broader concerns surrounding AI-related stocks. The company’s €11.7 billion in net sales and €5.0 billion in net income underscore the strength of demand for its industry-leading lithography systems.
While questions remain about how long the current AI investment cycle will last, ASML’s growing order activity and optimistic outlook suggest that semiconductor manufacturers continue to view advanced chip production capacity as a strategic priority. For the stock traders out there, the latest results reinforce ASML’s unique position at the centre of one of the technology industry’s most important long-term growth trends.
ASML Holding provides lithography solutions for the development, production, marketing, sales, upgrading, and servicing of advanced semiconductor equipment systems.
ASML stock (NASDAQ:ASML) closed trading 1.65% higher at US$1,626.81 and has risen 53.96% since the beginning of the year.
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