ASML, the world's largest semiconductor lithography equipment maker in the Netherlands, posted second-quarter 2026 results that beat market expectations on the back of increased investment in artificial intelligence (AI) chips. It also raised its full-year revenue outlook to 43 billion–45 billion euros (about 73.2156 trillion–76.6210 trillion won) from the previous 36 billion–40 billion euros (about 61.2968 trillion–68.1075 trillion won).
ASML said on the 15th (local time) that second-quarter revenue came to 9.3265 billion euros (about 15.88 trillion won), up 21.3% from a year earlier and 6.4% from the previous quarter. It was a "surprise performance" that beat the market forecast of 8.8 billion euros (about 14.9837 trillion won).
Operating profit during the period was 3.4561 billion euros (about 5.8847 trillion won), up 29.7% from a year earlier. Compared with the previous quarter, it rose 9.4%. The operating margin was 37.1%, up 2.5 percentage points from a year earlier. Net profit during the period was 2.9176 billion euros (about 4.9678 trillion won), up 27.4% from a year earlier.
ASML raised its full-year revenue outlook to 43 billion–45 billion euros (about 73.2156 trillion–76.6210 trillion won) from the previous 36 billion–40 billion euros (about 61.2968 trillion–68.1075 trillion won). It also revised its full-year gross margin forecast to 54%–56% from 51%–53%.
For the third quarter of this year (July–September 2026), ASML guided revenue of 11 billion–12 billion euros (about 18.7296 trillion–20.4323 trillion won). It expects a gross margin of 55%–57%. Research and development expenses are projected at about 1.2 billion euros (about 2.0432 trillion won), and selling, general and administrative expenses at about 400 million euros (about 681.1 billion won).
By business in the second quarter, revenue from lithography equipment sales was 6.5648 billion euros (about 11.1778 trillion won), up 4.5% from the previous quarter. Revenue from maintenance and performance upgrades for installed tools rose 11% to 2.7617 billion euros (about 4.7023 trillion won). The company cited maintenance and upgrade revenue coming in about 300 million euros above its initial expectations as a key driver of the improved results.
Among equipment revenue in the second quarter, extreme ultraviolet (EUV) lithography systems accounted for the largest share at 57%. Argon fluoride immersion (ArFi) systems made up 29%, and krypton fluoride (KrF) systems 6%. By semiconductor application, advanced logic chips accounted for 51% and memory for 49%. By shipment region, Korea had the highest share at 43%, followed by Taiwan at 30%, China at 14%, the United States at 9%, and Japan at 4%.
ASML said it sold a total of 91 lithography systems in the second quarter, including 86 new tools and 5 used ones. By product, shipments were 16 EUV systems, 23 ArFi systems, 8 argon fluoride dry (ArF Dry) systems, 35 KrF systems, and 9 i-line systems. Total sales in the previous quarter were 79 units.
ASML said AI-related investment is boosting demand for advanced logic and memory chips, prompting customers to move up their capacity expansion plans. It expects this year's advanced foundry logic revenue to rise about 25% from last year, and memory to increase 75%. It sees EUV business revenue up 45%, deep ultraviolet (DUV), metrology, and inspection equipment revenue up 25%, and maintenance and upgrades up more than 30%.
Christophe Fouquet, ASML chief executive officer (CEO), said, "Ongoing AI investment and technological advances are driving demand for advanced logic and memory chips," and "as customers accelerate plans to expand capacity, visibility into long-term demand has also improved."
ASML plans to increase production capacity for low numerical aperture (low NA; NA is a measure of how much light a lens can collect) EUV systems, which is about 65 units this year, by 30% in 2027. It is also considering an additional 30% expansion in 2028. It will increase production capacity for DUV immersion systems, which is about 130 units this year, by 30% in 2027 and pursue further additions the following year.
ASML also said Intel is mass-producing some of its "Core Ultra Series 3" laptop processors based on the Intel 18A process using high numerical aperture (High NA) EUV systems. This is the first case of High NA EUV moving beyond the research and development stage into actual high-volume manufacturing.