ASML Holding NASDAQ:ASML rose 5.13% intraday after reporting second-quarter net sales of 9.3 billion and net income of 2.9 billion, both above its own guidance and ahead of LSEG consensus of 8.8 billion and 2.6 billion respectively. Gross margin came in at 54.0%.
ASML now expects 2026 net sales of 43 billion to 45 billion at a 54-56% margin, up from a prior 36-40 billion range, marking its second increase this year. CEO Christophe Fouquet tied the confidence to AI, saying customers "continue to accelerate their capacity expansion plans," and the pull-through is visible at ASML's largest customer, Taiwan Semiconductor (TSM), which reported a 68% jump in June sales earlier this week.
ASML plans to add 30% to both its low-NA EUV and DUV immersion capacity for 2027. The company still faces a proposed US bill that could cut off DUV machine sales to Chinese chipmakers, a market ASML still expects to be around 20% of 2026 sales.