ASML upgraded full-year sales and margin targets for a second time in 2026 after “extremely strong” first-half order intake as customers accelerate AI‑chip capacity builds.
ASML, the Dutch maker of lithography systems used to produce advanced semiconductors, raised its 2026 sales and gross‑margin guidance for the second time this year after reporting stronger-than-expected second-quarter results and exceptionally robust order intake.
H2 demand outlook and capacity targets
The company now forecasts full‑year net sales of €43 billion to €45 billion and a gross margin of 54%–56%, up from a prior sales range of €36 billion to €40 billion and a gross margin outlook of 51%–53%. For the quarter, ASML reported net sales of €9.3 billion versus the LSEG consensus of €8.8 billion and net profit of €2.9 billion versus an €2.6 billion estimate.
CEO Christophe Fouquet told investors that order intake in the first half of 2026 was “extremely strong” as chipmakers accelerated capacity expansion plans to serve AI workloads. In response, ASML plans to increase its 2026 low-NA EUV capacity by 30% and its 2026 DUV immersion capacity by 30%, targeting faster output of its EUV and DUV systems from its Veldhoven facilities.
Market reaction and share performance
Shares initially jumped more than 7% on the guidance lift before trimming gains; they closed the session marginally lower. The stock has more than doubled year‑to‑date, trading up roughly 115% this year, according to the company’s trading summary.
Customer context: TSMC and capex buildout
Customers such as Taiwan Semiconductor Manufacturing Co. (TSMC) continue to expand production. TSMC reported a 68% jump in June sales and is planning new advanced packaging plants in southern Taiwan, moves that underline demand for ASML’s systems. UBS analysts noted the ongoing fab buildout and AI-driven demand should support a stronger back half for ASML.
China, export controls and geographic mix
ASML reiterated that China is expected to account for about 20% of full‑year net sales. China’s share fell from 19% in Q1 to 14% in Q2, while South Korea was the largest market at 43% of second‑quarter sales. The company continues to face export‑control pressures and proposed U.S. legislation that could restrict sales of DUV machines to Chinese customers; the bill remains in the legislative process.
Analyst view and valuation note
Morningstar senior analyst Javier Correonero praised ASML’s operational response — expanding cleanroom capacity and accelerating shipments — but cautioned that much of the strong demand is already priced in. Correonero said ASML trades near 50x forward P/E versus his firm’s implied valuation range of roughly 35x–40x forward P/E.
Corporate outlook and investor engagement
ASML said it will present updates on its longer‑term goals at a Capital Markets Day scheduled for June 10 next year. CFO Roger Dassen described China’s sales trend as “moving in sync with the overall behavior that we see globally” in a company video transcript.
Key Quotes
- “Order intake remained extremely strong in the first half of the year,” — Christophe Fouquet, ASML CEO.
- “The Chinese market is moving in sync with the overall behavior that we see globally,” — Roger Dassen, ASML CFO (video transcript).
- “ASML is doing a great job in bringing that capacity in… increasing output by optimizing the ‘cleanroom’ space,” — Javier Correonero, Morningstar (commentary to CNBC).
Why it matters
ASML is the only supplier of extreme ultraviolet (EUV) lithography systems that enable the most advanced semiconductor nodes. Its upgrades to capacity targets and the guidance raise signal that AI‑driven chip demand is directly translating into longer‑term customer commitments across ASML’s product portfolio — a key revenue driver for the global semiconductor equipment supply chain.
Bottom Line for Traders
Source-supported developments indicate stronger-than-expected demand for ASML’s EUV and DUV systems, lifting 2026 revenue and margin guidance. Traders should note the company’s geographic exposure (South Korea largest; China ~20% expected) and ongoing policy risks related to export controls that could influence future sales patterns. This article presents company-reported figures and analyst commentary; it is not investment advice.
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