ASML (ASML.US), the Dutch lithography equipment leader, released its third-quarter 2026 financial results on Wednesday. Total net sales for the quarter came in at 11.662 billion euros, up 55.2% year-over-year and 25.0% quarter-over-quarter, slightly below the market expectation of 11.735 billion euros.
Net profit reached 4.960 billion euros, surging 133.4% year-over-year and significantly beating the market estimate of 4.165 billion euros. Gross margin stood at 57.5%, with basic earnings per share of 12.95 euros, compared to 5.49 euros in the same period last year.
Revenue from installed base management, including net service and upgrade solutions, totaled 3.289 billion euros, serving as the core driver behind the quarter's better-than-expected gross margin. New lithography system sales for the quarter reached 113 units, a notable increase from 86 units in the previous quarter, while second-hand lithography system sales came in at 8 units.
ASML expects fourth-quarter net sales of 14.2 billion to 15.2 billion euros, with a gross margin of approximately 57%. The midpoint of fourth-quarter revenue guidance at 14.7 billion euros exceeds the market's previous estimate of 14.189 billion euros.
Full-year revenue guidance was narrowed and raised from the prior range of 43-45 billion euros to 44-45 billion euros, while full-year gross margin guidance was lifted from 54%-56% to approximately 56%.
CEO Christophe Fouquet said in the earnings report that customers are continuing to raise their short-term and medium-term equipment demand forecasts, with some customers already expressing intentions to place equipment orders for 2029 and even 2030. The company also noted that under current capacity plans, supply in 2027 and 2028 is not expected to fully meet customer demand, and it is studying further capacity expansion in 2028.
Comments