ASML Earnings Surge 136% in Third Quarter on Strong AI and Equipment Upgrade Demand
ASML Holding N.V. (ASML) reported its third-quarter 2026 financial results, posting earnings per share of $12.93, up 135.9% from the previous year. Quarterly revenues reached $11.66 billion, a 55.2% increase year over year, driven by strong shipments of lithography systems and service upgrades. Net system sales grew as the company delivered 121 lithography units, while gross margin expanded to 57.5%. Net income rose 133.5% year over year, boosted in part by a valuation gain on an equity investment in Mistral AI.
The results underscore persistent global demand for advanced chipmaking equipment, fueled by expanding investments in artificial intelligence infrastructure. Demand for productivity upgrades in ASML's installed base jumped 67.6% year over year, exceeding management's internal targets by roughly 13.8% as semiconductor manufacturers moved quickly to expand factory capacity. Extreme ultraviolet tools accounted for 46% of system revenues, with buyers in Taiwan, South Korea, and China representing the vast majority of total equipment sales.
Looking ahead, the semiconductor equipment maker expects full-year 2026 revenues to rise approximately 36%, supported by plans to ship around 65 extreme ultraviolet systems. Management plans to increase manufacturing capacity for immersion and lower-aperture tools by 30% in 2027 and is evaluating further expansion for 2028. Investors will also monitor the payout of a second interim dividend scheduled for Nov. 4, 2026, alongside ongoing share buybacks under its multi-year capital return program.
Key points
- ASML Holding N.V. reported third-quarter 2026 earnings per share of $12.93, up 135.9% year over year.
- Revenues reached $11.66 billion, up 55.2% from a year ago, led by 121 lithography system shipments.
- Installed Base Management revenues jumped 67.6% year over year, topping internal guidance by about 13.8%.
- Gross margin expanded 590 basis points year over year to 57.5%, while operating income doubled.
- Management projects 2026 full-year revenue growth of roughly 36% and plans a 30% capacity expansion in 2027.
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What were ASML Holding's third-quarter 2026 earnings and revenues?
ASML Holding N.V. reported third-quarter 2026 earnings of $12.93 per share, up 135.9% year over year. Quarterly revenues rose 55.2% from the prior year to $11.66 billion.
Why did ASML's service and upgrade revenues exceed expectations?
Installed Base Management revenues grew 67.6% year over year to beat guidance by about 13.8%, as semiconductor manufacturers rushed to expand production capacity for advanced chip technologies using productivity upgrades on existing equipment.
What is ASML's financial outlook for full-year 2026?
ASML expects full-year 2026 revenues to grow approximately 36% year over year with a gross margin around 56%. The company plans to ship about 65 extreme ultraviolet systems during the year.