ASML lifts 2026 outlook and capacity plans

ASML increased its full-year 2026 net revenue outlook, now expecting between €43 billion and €45 billion in sales. At the same time, the company raised its 2026 gross-margin guidance to a range of 54% to 56%. The updated targets mark the second time this year that ASML has lifted its annual sales forecast, reflecting stronger-than-anticipated demand for its chip-making equipment.

The higher guidance comes as customers, particularly those focused on artificial intelligence-related logic and memory chips, continue to invest heavily in new manufacturing capacity. ASML indicated that these customer plans are translating into greater visibility on its own revenue trajectory for the remainder of 2026.

For the second quarter of 2026, ASML reported total net sales of €9.33 billion. Net income for the period reached €2.92 billion, and the company delivered a gross margin of 54.0%. This gross margin exceeded its prior guidance for the quarter, underscoring improved profitability alongside robust revenue generation.

Management highlighted that order intake remained "extremely strong" in the first half of 2026. Customers are accelerating their capacity expansion plans, which ASML said is contributing to increased confidence in future demand. The company noted that strong orders span its product portfolio, supporting both near-term shipments and longer-term planning.

To align with persistent demand, ASML outlined significant production capacity increases for its advanced lithography systems. The company plans to expand its low-NA extreme ultraviolet (EUV) capacity by about 30% relative to its 2026 level for 2027 and is investigating a further 30% increase for 2028. These steps are intended to support customer roadmaps for leading-edge chip production.

A similar expansion is planned for deep ultraviolet (DUV) immersion systems, where ASML also targets around a 30% capacity increase in each of the next two years. By scaling both EUV and DUV output, the company aims to accommodate rising tool demand associated with AI-related logic and memory chip manufacturing. Management framed these capacity moves as a direct response to sustained order momentum and the need to convert commitments into system deliveries.

ASML emphasized that accelerating customer investment plans are providing improved visibility into longer-term demand for its tools. The combination of raised revenue and margin guidance, strong quarterly results, and planned capacity expansions suggests confidence in the durability of current market trends. The company’s focus on both EUV and DUV capacity indicates an expectation of broad-based demand across technology nodes, linked in particular to AI-related chip production needs.