ASML Raises Annual Forecasts After a Second Quarter Above Guidance
ASML reported revenue of €9.3 billion and net income of €2.9 billion for the second quarter of 2026. Revenue and gross margin, which stood at 54.0%, exceeded the group's forecasts, mainly due to higher sales of services and on-site installed options. ASML has now raised its annual revenue forecast to a range of €43 to €45 billion, with an expected gross margin between 54 and 56%.
A Second Quarter Above Guidance, Driven by Services
The revenue for the second quarter of 2026 was €9.326 billion, above ASML's guidance. The gross margin reached 54.0%, also exceeding the group's forecasts. This performance was primarily driven by higher-than-expected sales of services and on-site installed options, grouped under the Installed Base Management activity. These reached €2.762 billion, up from €2.488 billion in the first quarter. The net income amounted to €2.918 billion, resulting in a basic earnings per share of €7.59.
Investments in Artificial Intelligence Support Demand
ASML states that ongoing investments in artificial intelligence and advances in AI technologies are driving demand for advanced logic and memory chips. According to the group, its clients continue to accelerate their capacity expansion projects, which translates into commitments covering its entire product portfolio and increased visibility on long-term demand. Order intake remained extremely strong in the first half of 2026. ASML plans to increase its production capacity for low numerical aperture EUV equipment by 30% in 2027, compared to a 2026 capacity of about 65 systems. The group is considering a further 30% increase for 2028. It anticipates the same growth for immersion DUV equipment, based on a 2026 capacity of about 130 systems, and continues to expand its upgrade offerings.
Raised 2026 Outlook and Share Buyback
ASML now anticipates total revenue between €43 and €45 billion in 2026, with a gross margin of 54 to 56%. For the third quarter, the group expects revenue of €11 to €12 billion and a gross margin between 55 and 57%. ASML also plans approximately €1.2 billion in research and development expenses and €0.4 billion in selling, general, and administrative expenses for the third quarter. The group repurchased approximately €1.1 billion of its own shares in the second quarter as part of its 2026-2028 program. An interim dividend of €1.88 per ordinary share will be payable on August 5, 2026. At the end of the quarter, cash, cash equivalents, and short-term investments totaled €7.582 billion.
