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ASML Lifts Outlook After Blowout Quarter and Moves to Speed Capacity Expansion

Soaring AI-driven chip demand is driving ASML to accelerate 2027 manufacturing capacity while it raises full-year 2026 revenue and margin targets.

Overview

  • ASML reported a blowout second quarter with roughly €9.3 billion in revenue and about €2.9 billion in net income, beating company guidance and analyst estimates.
  • The company said it sold 86 new lithography systems in the quarter, including 16 EUV tools and one High‑NA recognition, and recognized strong order intake that fills much of its near-term capacity.
  • Management confirmed plans to boost Low‑NA EUV and DUV production by about 30% in 2027 and is studying a similar additional increase for 2028 to meet accelerated demand.
  • Installed Base Management — service work and upgrades on machines already deployed — produced about €2.7–€2.8 billion in Q2 revenue and materially lifted gross margins to roughly 54%.
  • Geopolitical limits on exports to China remain a key risk for future growth even as Wall Street turns uniformly bullish and analysts raise price targets on expectations that ASML will shape chip supply into 2027–2028.