Yesterday, ASML released its Q2 results, showing sales of €9.3 billion and raising its full-year guidance.
This marks the second time ASML has revised its full-year sales forecast this year. The company now anticipates total net sales for 2026 to be between €43 billion and €45 billion, with a gross margin between 54% and 56%, up from 51–53%.
The company explained:
“Our second-quarter total net sales reached €9.3 billion, exceeding guidance. The gross margin stood at 54.0%, also above expectations, primarily driven by higher-than-expected Installed Base Management sales.”
“Our order intake remained exceptionally strong throughout the first half of the year. Given this momentum, we plan to increase our low-NA EUV capacity by 30% for 2027, from our current 65 units. We are also investigating further capacity increases of 30% for 2028.
Similarly, we intend to boost our DUV immersion capacity by 30% for 2027, from our current 130 units. We are also exploring additional capacity increases of 30% for 2028. Furthermore, we are actively expanding our upgrade portfolio.”
“Looking ahead, we expect third-quarter 2026 total net sales to range between €11.0 billion and €12.0 billion, with a gross margin between 55% and 57%.”
ASML manufactures the machines used to create every advanced chip globally. Its order book serves as the most reliable forward indicator for the semiconductor cycle. Raising guidance twice in a year suggests that its customers, including TSMC, Samsung, Intel, SK Hynix, are accelerating their capacity buildout rather than pausing it.
ASML holds the title of Europe’s largest company by valuation, with its stock price up over 60% year-to-date, resulting in a valuation of €615 billion.
In response to ASML’s release, Applied Materials (AMAT), Intel (INTC), and Lam Research (LRCX) each experienced stock price increases exceeding 2%.
ASML closed the day flat after a 5% rise but managed to gain a few points today.
The chip equipment cycle is being validated from the top down.
