ASML Holding NV

NASDAQ:ASML

Record quarter: ASML reported record Q3 net sales of EUR 11.7 billion and a 57.5% gross margin, with sales toward the high end of guidance.

Strong outlook: Management expects 2026 sales of EUR 44 billion to EUR 45 billion, up around 36% year over year, and expects Q4 sales of EUR 14.2 billion to EUR 15.2 billion.

Demand: AI-related demand is driving shortages in advanced Logic and Memory, with customers expecting demand to exceed supply through at least 2028 and seeking tools for 2029 and 2030.

More capacity: ASML plans 30% capacity growth in 2027 for Low NA EUV and immersion systems, and is exploring capacity growth above 30% in 2028; management did not provide new unit targets.

Pricing: Price increases on the most critical products have been agreed with customers. They should begin to help revenue, average selling prices, and gross margin in 2027, with the full effect from 2028.

Memory growth: ASML expects 2026 Memory system sales to grow around 75%, compared with around 10% growth in Logic; management said advanced Logic is expected to grow over 25%.

Technology progress: Customers announced plans for High NA EUV in high-volume manufacturing in 2028 and 2030, while ASML also introduced productivity upgrades and new system road-map targets.