ASML raises Q2 guidance for second time in 2026, citing unrelenting AI chip production demand and equipment sales.
Dutch chip equipment maker ASML raised its 2026 sales forecast for the second time this year after posting second-quarter results that exceeded analyst expectations. Quarterly net sales reached €9.3 billion, surpassing the €8.8 billion forecast by LSEG analysts, while net profit came in at €2.9 billion compared to the €2.6 billion market forecast. The strong performance drove ASML shares up more than 3% on Wednesday, opening 7% higher before trimming gains.
The company now expects 2026 net sales between €43 billion and €45 billion, a significant increase from its earlier forecast of €36 billion to €40 billion. ASML also raised its gross margin range to 54–56%, up from 51–53%, reflecting robust demand for equipment used in AI processors, data centers, and high-bandwidth memory production. Customer orders remained strong throughout the first half of 2026 as foundries and memory producers accelerated their capacity expansion plans.
CEO Christophe Fouquet described order intake during the first half as "extremely strong," noting that customers were accelerating expansion across both logic and memory production. He emphasized that these commitments had significantly improved the company's visibility into demand through 2028. ASML plans to increase its 2026 low-NA EUV capacity by 30% and boost deep ultraviolet immersion capacity by the same percentage. Both systems are manufactured at ASML's facility in Veldhoven, Netherlands.
ASML holds a monopoly on extreme ultraviolet lithography machines, the only technology capable of producing the most advanced semiconductors. Its major customers include TSMC, Intel, SK Hynix, and Micron Technology. Orders for EUV systems now extend into 2028, reflecting continued investment in AI servers, advanced processors, and memory chips, as well as productivity gains from equipment upgrades.
TSMC, ASML's largest customer, reported a 68% increase in June sales and is preparing new advanced packaging plants to meet growing demand for AI chips. TSMC is scheduled to release its second-quarter results on July 16, with analyst consensus estimates of $3.89 earnings per share and $39.31 billion in revenue. Investors will closely monitor TSMC's capital spending guidance, 2-nanometre production ramp, and advanced packaging demand—indicators that will likely reflect the broader order strength ASML has observed.
Geographically, South Korea became ASML's largest market in the quarter, accounting for 43% of sales. China, despite tighter export controls, remains important to ASML's business, though its share declined to 14% in the second quarter from 19% in the first quarter. The company still expects China to represent approximately 20% of annual sales. ASML will provide a comprehensive update on long-term targets at its Capital Markets Day on June 10, 2027.