ASML Posts Record €11.7 Billion Sales Amid Rising AI Demand
ASML, the Dutch supplier of equipment for the semiconductor sector, announced that its existing production strategies would not meet customer demand in 2027 and 2028, as investments in AI persistently increase orders.
The firm reported its record quarterly sales, reaching €11.7 billion in the third quarter, and elevated the lower end of its sales projection for 2026.
ASML indicated that clients continue to raise their projections for equipment demand, primarily due to their expectations regarding the scale and duration of AI investments. Some are looking to reserve machines already for 2029 or 2030.
In July, the firm announced plans to increase its capacity by 30percent in 2027 for both its low-NA extreme ultraviolet (EUV) and deep ultraviolet (DUV) immersion equipment. ASML is the sole manufacturer of EUV systems, utilized for the most sophisticated chips. It was also anticipating an additional 30percent increase in 2028.
"We are exploring methods to enhance capacity for 2028 beyond the 30percent increase we shared earlier," stated CEO Christophe Fouquet.
"Every day, customers are requesting that we offer more tools," Fouquet noted in a video interview published with the results.
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Sales in the third quarter reached €11.66 billion, rising 55percent compared to the previous year, aligning closely with ASML’s forecast of €11-12 billion and roughly matching the €11.7 billion average of analyst predictions gathered by Bloomberg.
Net income increased more than twofold to €5 billion, bolstered by a €510 million profit from ASML's investments in other firms.
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Gross margin, the portion of sales remaining after production expenses, surpassed ASML's prediction at 57.5percent, primarily driven by €3.3 billion in revenue from servicing and upgrading clients' current machines.
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ASML now anticipates 2026 revenues of €44-45 billion, increased from €43-45 billion, with a gross margin of approximately 56percent, improved from 54-56percent. It additionally predicts fourth-quarter revenue of €14.2-15.2 billion.