ASML Posts Record Quarter as Supply Constraints and Strong Margins Shape Outlook
ASML reported record third-quarter sales of €11.7 billion and net income of €5.0 billion, while guiding fourth-quarter sales to €14.2–€15.2 billion. The CEO said planned supply for 2027 and 2028 will not fully satisfy customer demand, and the company is expanding capacity. Gross margin reached 57.5%, supported by installed-base sales and upgrades, with value-based pricing expected to contribute more in later years.
ASML's third-quarter revenue reached €11.7 billion, a 25% sequential rise, while net income was €5.0 billion. The company expects fourth-quarter sales of €14.2–€15.2 billion and a gross margin near 57%. It also tightened its 2026 revenue range to €44–€45 billion.
Management said 2027 and 2028 supply will fall short of customer demand. ASML intends to raise capacity by 30% in 2027 and is assessing further expansion for 2028. Some buyers are already discussing orders for 2029 and 2030. Gross margin benefited from sales tied to already installed systems, upgrades, higher volumes, and a favorable product mix.
ASML's capacity limits could shape how quickly advanced chips reach data centers, devices, and AI services. If equipment supply remains tight, chipmakers may face longer timelines, potentially affecting technology costs and availability for businesses and consumers. Workers and regions tied to semiconductor manufacturing may see uneven investment, while reliance on a small number of lithography suppliers may keep the industry's expansion path vulnerable to execution risks.