Key Highlights

  • Third-quarter 2026 net sales were EUR 11,662 million, the highest quarterly figure to date, against EUR 9,326 million in the second quarter.
  • Gross Margin was 57.5 per cent and Net Income was EUR 4,960 million.
  • Fourth-quarter guidance is net sales of EUR 14.2 billion to EUR 15.2 billion, and full-year 2026 net sales of EUR 44 billion to EUR 45 billion.

The latest results

ASML (NASDAQ:ASML), the Dutch maker of lithography equipment for semiconductor manufacturing, reported third-quarter 2026 results on 14 October 2026. Total net sales were EUR 11,662 million, the highest quarterly figure to date, compared with EUR 9,326 million in the second quarter, and towards the high end of the company's guidance according to chief executive Christophe Fouquet.

Net income was EUR 4,960 million, up from EUR 2,918 million in the second quarter, and Basic Earnings Per Share were EUR 12.95 against EUR 7.59. All comparisons in the release are sequential, so this article does not state year-on-year growth.

The sequential rise in net sales was about 25 per cent, while net income grew by roughly 70 per cent, consistent with the higher gross margin reported this quarter.

Margins and the installed base

Gross profit was EUR 6,700 million, a gross margin of 57.5 per cent, compared with 54.0 per cent in the second quarter. Installed Base Management sales, which cover upgrades and services for equipment already in the field, were EUR 3,289 million against EUR 2,762 million, and Fouquet said they came in above guidance.

The company sold 113 new lithography systems in the quarter, against 86 in the second quarter, and eight used systems, against five. Installed Base Management made up about 28 per cent of net sales. The release does not break out sales between extreme ultraviolet and deep ultraviolet systems, nor does it disclose a net bookings figure, so neither is quantified here.

Demand and Supply commentary

Fouquet said that customers continue to increase their short- and medium-term equipment Demand forecasts, and that ASML's supply as currently planned for both 2027 and 2028 will not fully meet customer demand. The company is investigating ways to increase capacity for 2028 beyond the 30 per cent increase it previously communicated, and some customers want to place orders for 2029 and 2030.

These are management statements about demand and plans, not reported results, and they depend on the company executing its capacity expansion.

Guidance, cash and Shareholder returns

For the fourth quarter, ASML guided to total net sales of EUR 14.2 billion to EUR 15.2 billion and a gross margin of around 57 per cent, with Research and Development costs of about EUR 1.2 billion and selling, general and administrative costs of about EUR 0.4 billion. For 2026 as a whole, it expects net sales of EUR 44 billion to EUR 45 billion and a gross margin of around 56 per cent.

The midpoint of the fourth-quarter range is about 26 per cent above the third-quarter figure. Guidance is a forecast and the outcome may differ.

Cash, cash equivalents and short-term investments rose to EUR 12,735 million from EUR 7,582 million. The company repurchased about EUR 4.1 billion of shares in the quarter under its 2026 to 2028 programme and declared an Interim Dividend of EUR 1.88 per ordinary share, payable on 4 November 2026.

What to watch

Three matters stand out. The first is delivery against the fourth-quarter range. The second is whether gross margin holds near 57 per cent as the mix changes. The third is any further announcement on 2028 capacity, which management says it is investigating.