ASML Reports Robust Sales in Q2, Raises 2026 Guidance Amid Rising AI Demand

ASML lifted its sales outlook for 2026 following stronger-than-anticipated quarterly results, attributing the increase to rising demand for semiconductors used in artificial intelligence applications. The company also announced plans to boost its manufacturing capacity to keep pace with customers ramping up chip production. Europe’s most valued company now projects full-year revenue for 2026 to fall between 43 billion and 45 billion euros, an increase of around 16% over its prior forecast range of 36 billion to 40 billion euros. Gross margin guidance was also raised to between 54% and 56%, up from the earlier range of 51% to 53%. For the second quarter, the company reported net sales of 9.3 billion euros, exceeding the market consensus of 8.8 billion euros, while net profit reached 2.9 billion euros, ahead of expectations of 2.6 billion euros. ASML manufactures the only extreme ultraviolet (EUV) lithography equipment in the world, critical in producing advanced chips. This unique position has made the Dutch company an essential supplier for firms aiming to accelerate production in response to the AI-driven surge in chip demand. The company targets a 30% increase in its low NA EUV and deep ultraviolet (DUV) immersion manufacturing capacity, as management noted that order intake remained robust throughout the first half of the year. The company raised its financial targets earlier in the year and continues to experience strong orders, especially from customers such as TSMC, Samsung, SK Hynix, and Micron. Recent industry developments include TSMC’s reported 68% increase in June sales, underlining the degree of expansion underway to address AI chip market needs. Despite positive demand trends, shares of semiconductor companies have come under pressure amid investor questions about the durability of the AI investment cycle and concerns about possible additional export controls on advanced chipmaking tools. Earlier in the year, ASML’s stock declined in response to proposed U.S. legislation that could restrict sales of its DUV lithography equipment to Chinese customers. According to the company, roughly 20% of 2026 net sales are still expected to come from China, and management reports that trends in the Chinese market remain aligned with global patterns. Following these, ASML plans to provide a further update on its long-term strategy at its Capital Markets Day scheduled for June next year.