ASML Beats Third-Quarter Estimates as Chipmakers Book Machine Capacity Through 2028

ASML Holding N.V. (ASML) reported third-quarter revenue of €11.66 billion ($12.99 billion), up 55% from the prior year, alongside earnings per share of €12.93 ($14.40). Both metrics topped analyst expectations. The semiconductor equipment manufacturer also projected fourth-quarter revenue of €14.7 billion ($16.37 billion) at the midpoint, exceeding consensus forecasts.

Strong chipmaker demand is running ahead of manufacturing capacity, leaving the company effectively sold out of its extreme ultraviolet lithography systems through 2028. To manage order volume and serve long-term clients fairly, the firm has paused taking orders for 2029 and 2030 while planning minimum capacity expansions of 30% for 2027 and 2028. Down payments from customers surged, with non-current contract liabilities rising 160% from the previous quarter.

Looking ahead, new value-based pricing agreements with major customers are expected to boost profit margins starting in 2028. Analysts anticipate gross margins could reach 59% or higher that year. Investors will also monitor sales to China, which accounted for 23% of third-quarter revenue, alongside the rollout of output expansion plans.