ASML once again raises its full-year performance guidance and plans to increase lithography machine production capacity by 30% in the next two years
On July 15, lithography giant ASML released its second quarter results. During the period, it achieved net sales of 9.3 billion euros and a gross profit margin of 54.0%, both higher than expected. Net profit in the second quarter reached 2.9 billion euros. ASML explained that the main reason for exceeding expectations was the installed after-sales service business. Revenue from installed after-sales services in the second quarter reached 2.8 billion euros, 300 million euros higher than expected. This was mainly due to customer demand for improving existing productivity, which drove significant growth in the upgrade business.
On July 15, lithography giant ASML released its second quarter results. During the period, it achieved net sales of 9.3 billion euros and a gross profit margin of 54.0%, both higher than expected. Net profit in the second quarter reached 2.9 billion euros. ASML explained that the main reason for exceeding expectations was the installed after-sales service business. Revenue from installed after-sales services in the second quarter reached 2.8 billion euros, 300 million euros higher than expected. This was mainly due to customer demand for improving existing productivity, which drove significant growth in the upgrade business. ASML expects net sales in the third quarter of 2026 to be between 11 billion and 12 billion euros, with gross profit margins between 55% and 57%. Due to strong growth expectations, ASML once again raised its full-year net sales in 2026, which is expected to be between 43 billion and 45 billion euros, with gross profit margins ranging from 54% to 56%. In the first quarter of this year, ASML raised its forecast for full-year net sales in 2026 to be between 36 billion and 40 billion euros, with gross profit margins ranging from 51% to 53%. ASML President and CEO Christophe Fouquet said that the increase in 2026 full-year performance expectations is the result of the joint influence of the demand side and the supply side: on the one hand, demand from customers remains strong; on the other hand, relying on the advantages of the supply chain, manufacturing capabilities and on-site installation service teams, the company has the ability to respond to customer needs in a timely manner. Fu Keli said that end market demand has driven customers to continuously increase capital expenditures and accelerate their production expansion plans, which has driven the demand for more ASML lithography systems starting this year. At the same time, ASML is also expanding its production capacity and team to support customers' future development needs. Fu Keli said that the above-mentioned dynamics are reflected in customers in the field of logic chips and DRAM (dynamic random access memory). They are signing long-term agreements with their downstream customers, which also prompts them to make longer-term investment and production capacity planning. Based on the current market development momentum, the company will continue to promote production capacity expansion in the next two years. Among them, in the field of logic chips: driven by AI-related needs, customers are actively expanding the production capacity of existing advanced process nodes and promoting the ramp-up of the next generation of advanced process nodes. Taken together, ASML's revenue from the advanced logic chip field is expected to grow by approximately 25% this year. In the field of memory chips: Judging from the recent price of memory chips (DDR or HBM), the market is in a state of short supply, which has pushed customers to accelerate their production capacity expansion plans. At the same time, the latest process nodes require more photolithography processes, pushing up the proportion of photolithography in the overall investment of wafer fabs, and increasing the demand for EUV and immersion DUV lithography machines. Taken together, ASML's revenue from the memory chip field is expected to grow by approximately 75% this year. ASML stated that it plans to increase production capacity by 30% in 2027 based on the production capacity planning of approximately 65 low numerical aperture (Low NA) EUVs in 2026, and is studying a further increase in production capacity by 30% in 2028. Similarly, the company plans to increase production capacity by 30% in 2027 based on the production capacity plan of approximately 130 immersion DUVs in 2026, and is studying to increase production capacity by another 30% in 2028. In addition, ASML will continue to significantly expand its system upgrade product portfolio. As for the Chinese market, ASML Chief Financial Officer Dai Houjie said that he still expects the Chinese market to account for approximately 20% of net sales in 2026, consistent with the previously expected proportion. Dai Houjie explained that since the company's total net sales forecast for 2026 has been increased from the beginning of the year, while the sales proportion in the Chinese market remains unchanged, the absolute scale of its sales will be correspondingly higher than expected at the beginning of the year. From this point of view, the development of the Chinese market is basically consistent with the overall trend of the global market. In addition, the incremental demand in the Chinese market mainly comes from the field of logic chips, dominated by local demand. (