Rises After Strong Quarterly Results and Higher 2026 Outlook

TLDR

• ASML stock rises after Q2 earnings beat and stronger 2026 revenue outlook.
• Q2 sales reach €9.3B as profit and gross margin exceed company guidance.
• AI chip demand supports higher EUV and DUV production expansion plans.
• ASML boosts 2026 forecast with revenue target raised to €43B–€45B.
• Company buys back €1.1B in shares and declares a €1.88 interim dividend.

ASML Holding N.V. (ASML) shares advanced after the company reported stronger-than-expected second-quarter 2026 financial results. The stock closed 2.87% higher at $1,775.64 after recovering from volatile early trading. Meanwhile, pre-market trading showed another 3.31% gain to $1,834.42 as the updated outlook supported market sentiment.

ASML Holding N.V., ASML

ASML reports higher revenue and profit in the second quarter

ASML generated €9.3 billion in second-quarter net sales, compared with €8.77 billion during the first quarter. Gross profit reached €5.04 billion, while the gross margin improved to 54.0%. Net income also increased to €2.92 billion, and basic earnings per share rose to €7.59 from €7.15.

The company sold 86 new lithography systems during the quarter, compared with 67 units in the previous quarter. Used lithography system sales declined to five units from 12 units. Installed Base Management sales also increased to €2.76 billion from €2.49 billion during the same period.

ASML stated that stronger Installed Base Management sales lifted both revenue and profitability above earlier guidance. End-quarter cash and short-term investments totaled €7.58 billion, compared with €8.38 billion at the end of the first quarter. The updated results reflected continued demand across the company’s semiconductor equipment portfolio.

AI demand supports stronger outlook and production expansion

ASML raised its full-year 2026 guidance following strong order activity during the first half of the year. The company now expects total net sales between €43 billion and €45 billion. It also projects a gross margin ranging from 54% to 56% for the full year.

For the third quarter, ASML expects total net sales between €11 billion and €12 billion. The company forecasts a gross margin between 55% and 57%. It also expects research and development costs of about €1.2 billion and selling, general and administrative expenses near €0.4 billion.

The company linked stronger long-term demand to continued spending on advanced logic and memory chips. ASML plans to increase its 2027 low NA EUV production capacity by 30% from around 65 systems in 2026. It also plans a 30% increase in DUV immersion capacity from about 130 systems while evaluating additional expansion during 2028.

Buyback program and dividend support shareholder returns

ASML continued returning capital to shareholders during the second quarter through its ongoing buyback program. The company repurchased approximately €1.1 billion worth of shares under its 2026–2028 authorization. This program remains part of its broader capital allocation strategy.

The company also announced an interim dividend of €1.88 per ordinary share for the 2026 financial year. Shareholders will receive the payment on August 5, 2026. The dividend announcement accompanied the latest earnings release and updated financial guidance.

ASML remains the world’s leading supplier of advanced lithography systems used in semiconductor manufacturing. Its equipment enables chipmakers to produce increasingly advanced processors for computing, data centers, automotive applications, and consumer electronics. Therefore, stronger earnings, higher guidance, expanding production plans, and continued shareholder returns supported positive momentum in ASML shares following the quarterly update.