ASML raises 2026 sales forecast, plans major capacity expansion

ASML raised its 2026 sales forecast to 43 billion to 45 billion euros after second-quarter revenue and profit came in ahead of expectations.

ASML reported second-quarter net sales of 9.326 billion euros and net income of 2.918 billion euros, both above market expectations. Gross margin was 54.0%, and basic earnings per share came to 7.59 euros. The company also forecast third-quarter net sales of 11.0 billion to 12.0 billion euros and said full-year 2026 gross margin should land between 54% and 56%. The new range tops its prior 2026 revenue range of 36 billion to 40 billion euros, and the midpoint of the new guidance is 16% higher than the midpoint of the old one.

Chief executive Christophe Fouquet called customer demand “extremely strong” and said ASML would expand capacity by 30% in each of the next two years. The company’s plan covers both low-NA extreme ultraviolet, or EUV, systems and deep ultraviolet, or DUV, immersion tools. ASML plans to add 30% to its low-NA EUV capacity, now about 65 units, for 2027 and is studying another 30% increase for 2028. It also plans a 30% increase in 2027 DUV immersion capacity from a base of about 130 units, with another possible 30% increase in 2028.

ASML is the only maker of EUV lithography tools, which gives it a choke point in the semiconductor supply chain. Its DUV tools remain important for less advanced chips and for customers in China, keeping ASML squarely in the middle of export-control debates as Washington and Beijing compete for influence over chip access. On July 15, Intel Foundry said it is using ASML's High-NA EUV technology on the Intel 18A process node to produce a subset of Intel Core Ultra Series 3 processors.

ASML’s Amsterdam-listed shares rose 3.7% to 1,613 euros and were up 75% for the year. The company sold 86 new lithography systems in the quarter, up from 67 in the first quarter. Degroof Petercam analyst Michael Roeg called the results “blow-out,” while Marc Hesselink said easing lithography constraints is positive for the broader equipment ecosystem. CFO Roger Dassen said the expansion also takes into account Terafab, the new customer Elon Musk is building in Texas.