ASML Holding (ASML, Financials), the Dutch company that makes the world's most advanced chipmaking equipment, raised its 2026 outlook for the second time this year after another quarter of strong demand from semiconductor manufacturers.
The company now expects full-year sales of between 43 billion and 45 billion, up from its previous forecast of 36 billion to 40 billion. It also lifted its gross margin outlook to 54%56%.
Second-quarter results came in ahead of expectations. ASML reported revenue of 9.3 billion and net profit of 2.9 billion, beating analyst estimates on both measures.
Chief Executive Christophe Fouquet said orders were exceptionally strong during the first half of the year as customers accelerated investments to expand AI chip production. The company plans to increase manufacturing capacity for both its EUV and DUV lithography systems by about 30% next year to keep up with demand.
ASML shares rose about 5% after the update. While export restrictions continue to limit some sales to China, the company still expects the country to account for roughly one-fifth of its revenue this year.
Investors will now be watching whether AI-driven chip spending remains strong enough to support ASML's higher growth targets into 2027.