ASML reports Q3 net sales of €11.66B, vs. €11.72B est., a €4.96B net profit, vs. €4.1B est., and raises its 2026 net sales forecast from €43B-€44B to €44B-€45B

ASML has increased capacity forecasts for 2028 and is seeing order interest through 2030, indicating sustained demand for advanced chip manufacturing tools.

ASML reported third-quarter net sales of €11.66 billion, slightly below the €11.72 billion estimate, but achieved a net profit of €4.96 billion, significantly exceeding the €4.1 billion estimate. The Dutch semiconductor equipment manufacturer raised its 2026 net sales forecast to between €44 billion and €45 billion, up from a previous range of €43 billion to €44 billion. The company noted that customers are expressing interest in placing orders for its critical lithography machines through 2029 and 2030, driven by anticipated long-term AI-related investments. ASML is investigating ways to increase its capacity for 2028 beyond the previously forecasted 30% rise to meet this sustained demand. The company also reaffirmed its sales forecast for China, expecting it to constitute 20% of its total business, despite ongoing export restrictions.

The strong profit beat and extended order interest through 2030 underscore the deep and persistent demand for ASML's advanced lithography machines, primarily fueled by the burgeoning AI sector. This signals that the current supply chain constraints for critical semiconductor manufacturing equipment are likely to persist, with significant implications for chip production timelines and the pace of AI development. ASML's proactive steps to investigate capacity increases beyond its 30% forecast for 2028 suggest the company is responding to a market expectation of continued high demand, potentially setting a new baseline for the industry's growth trajectory.

While ASML maintains its China sales forecast, its capacity expansion efforts outside of China suggest a strategic focus on meeting global AI-driven demand, potentially prioritizing regions that are leading in advanced chip development. The commitment from major chipmakers like Samsung and TSMC to its next-generation High NA EUV machines further solidifies ASML's technological dominance and points to a future where these tools are central to manufacturing the most advanced semiconductors. Investors will be closely watching ASML's ability to scale production effectively to capitalize on this extended demand outlook.