ASML, the world’s leading supplier of semiconductor manufacturing equipment, has raised its financial outlook for 2026 after reporting stronger-than-expected second-quarter results, fuelled by surging global demand for artificial intelligence chips.
The Dutch technology company said on Wednesday it now expects full-year 2026 net revenue of between €43 billion and €45 billion, up from its previous forecast of €36 billion to €40 billion. The improved outlook reflects growing confidence that demand for advanced chipmaking equipment will remain strong as investment in AI infrastructure accelerates.
For the quarter ended June 30, ASML posted €9.33 billion in revenue, exceeding analysts’ expectations of €8.80 billion. Net income also surpassed forecasts, rising to €2.92 billion, above the estimated €2.62 billion, according to LSEG data.
The stronger-than-expected results lifted ASML shares 5.7% in early trading in Amsterdam, as investors welcomed the company’s upgraded outlook and expansion plans.
Analysts said the performance reinforced ASML’s dominant position in the global semiconductor equipment market.
Michael Roeg, Senior Equity Analyst at Degroof Petercam, described the results as exceptional, saying the scale of the company’s planned capacity expansion exceeded market expectations.
Chief Executive Officer Christophe Fouquet said demand for AI chips remained “extremely strong,” with customers continuing to accelerate investment in manufacturing capacity to meet growing global demand.
He said those expansion plans have given ASML greater visibility into long-term demand, strengthening confidence in the company’s future growth.
To support rising customer orders, ASML plans to increase production capacity for its flagship extreme ultraviolet (EUV) lithography systems by 30% annually over the next two years. The company will also expand output of its deep ultraviolet (DUV) machines, which are used to manufacture both mature and advanced semiconductor chips.
ASML remains the world’s only manufacturer of EUV lithography systems, making its technology critical to leading chipmakers, including TSMC, Samsung, SK Hynix and Micron, as they expand production to support AI-related demand.
Separately, Fouquet said Intel will use ASML’s next-generation High-NA EUV technology to manufacture selected versions of its advanced Panther Lake processors, marking the first commercial deployment of the cutting-edge system.
Chief Financial Officer Roger Dassen reaffirmed that China is expected to account for about 20% of ASML’s sales this year. While that represents a smaller share than in recent years, he said sales to Chinese customers continue to grow in absolute terms as the company’s overall revenue increases.
Dassen added that demand from Chinese manufacturers of logic chips used in artificial intelligence, smartphones and computers remains robust despite ongoing export restrictions.
ASML is barred from selling its EUV systems and most advanced DUV equipment to China under US-led export controls. However, it continues to supply less advanced DUV machines to customers in the country.
The company also warned that proposed US legislation aimed at tightening restrictions on technology exports to China could pose additional risks to its business in the future.
Goodness Anunobi
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