Earnings Recap — Q2 FY2026
CY Q3 2026 · Reported July 15, 2026 · Beat 5 of last 7 quarters
The Buildout is a website built on agentic AI tools, currently in beta, and could have factual errors.
ASML's raised guidance and capacity expansion plans signal accelerating AI-driven demand for advanced logic and DRAM, directly supporting the AI infrastructure buildout. The increase in EUV and immersion shipments, along with strong IBM upgrades, underscores the need for more leading-edge capacity to meet AI accelerator and HBM demand.
In Q2 2026, ASML reported total net sales of €9.3 billion, above guidance, with system sales of €6.6 billion (€3.8 billion EUV, including sales of one High-NA system, and €2.8 billion non-EUV) and IBM sales of €2.8 billion. Gross margin was 54%, net income €2.9 billion, and EPS €7.59. The company raised its full-year guidance, citing strong demand in advanced logic and DRAM, with memory-related net system sales expected to grow over 75% this year. They also announced that Intel Foundry is using ASML High-NA EUV technology on the Intel 18A process node to produce a subset of its Intel Core Ultra Series 3 processors.
Management raised full-year 2026 guidance to €43–45 billion in total net sales with gross margin of 54–56%, citing strong demand and improved output. For Q3 2026, they guide total net sales of €11–12 billion, IBM sales of ~€2.9 billion, and gross margin of 55–57%. They plan to ship around 65 Low-NA EUV systems and about 130 immersion DUV systems this year, with year-over-year EUV net system sales growth of over 45% and memory-related net system sales growth of over 75% this year. For 2027, they are close to fully covered on Low-NA EUV orders and plan a 30% capacity increase, with a further 30% under investigation for 2028. They expect continued strong demand, with visibility extending several years, and will update longer-term views at the Capital Markets Day in June 2027.
“The combination of continued strong momentum in customer demand and our ability to respond to that by driving higher output through strengths in our supply chain, our manufacturing, and our installed teams in the field are the primary drivers of our improved guidance.”
on Guidance raise rationale
“We now expect to ship around 65 Low-NA EUV systems this year, resulting in year-over-year EUV net system sales growth of over 45%.”
on EUV shipment outlook
“For 2027, we are now close to being fully covered with orders for Low-NA EUV, and we are planning to increase our Low-NA EUV capacity by around 30%.”
on 2027 capacity plans
Given TSMC's comments on High-NA being too expensive, is there scope for pricing adjustments for Low-NA to align with incremental value?
Christophe Fouquet said High-NA will provide cost benefits once maturity improves, citing Intel's use as a sign. Roger Dassen added that value-based pricing is the concept, and the current environment provides more pricing flexibility, though it won't translate immediately due to long lead times.
Is the implied 85 Low-NA EUV tools for 2027 the ceiling, or could it move higher?
Roger Dassen said the 30% increase reflects the current balance between demand and supply, but if customers need more, they will work to increase output. Christophe Fouquet noted capacity increases are based on existing footprint and they will continue to align with customer demand.
Can you explain the ASP and mix impact driving Q3/Q4 revenue and gross margin?
Roger Dassen explained that EUV mix improves in H2 with more E/F models and 230 configurations, immersion shipments are substantially higher in H2, and IBM remains strong. He guided to ~56% gross margin in H2, driven by mix, volume, and fixed cost coverage.