ASML Beats Q3 Estimates and Raises 2026 Sales Outlook on Strong AI Demand

ASML Holding N.V. (NASDAQ:ASML) reported third-quarter 2026 sales of €11.7 billion ($13.42 billion) and net income of €5 billion ($5.60 billion), topping Wall Street estimates. Earnings per share reached $14.88 (€12.95), ahead of expected projections of $12.47, while gross margins hit 57.5%. Following the strong quarter, the semiconductor equipment manufacturer raised the bottom end of its full-year 2026 revenue guidance to between €44 billion ($49.31 billion) and €45 billion ($50.43 billion).

The upbeat financial performance reflects accelerating demand for chipmaking equipment as tech firms scale up artificial intelligence infrastructure. President and Chief Executive Officer Christophe Fouquet indicated that semiconductor makers are boosting short- and medium-term spending forecasts. Demand is running so strong that customers are already discussing order placements for 2029 and 2030, leaving planned production capacity for 2027 and 2028 insufficient to meet market needs.

To keep pace, ASML is exploring further production capacity expansions beyond a previously planned 30% boost by 2028. Investors should monitor fourth-quarter 2026 sales, projected between €14.2 billion and €15.2 billion, as well as broader industry financing constraints highlighted by peers like Broadcom Inc. (NASDAQ:AVGO). Additionally, trade restrictions on tech exports to China remain an ongoing factor, with potential to encourage competing domestic lithography technology over the long term.