ASML Holding (NASDAQ: ASML) delivered a stunning second-quarter 2026 performance, posting net sales of 9.3 billion euros ($10.6 billion) and net income of 2.9 billion euros ($3.3 billion).
The chip equipment maker also recorded a 54% gross margin for the quarter, well ahead of the 51% to 52% management had guided for just months earlier.
ASML had initially forecast second-quarter net sales of 8.4 billion to 9 billion euros ($9.6 billion to $10.3 billion), making the actual result a clear beat on every major metric.
Management followed the strong quarter with a significant full-year guidance upgrade, now projecting 2026 net sales of 43 billion to 45 billion euros ($49.1 billion to $51.4 billion).
That revised outlook compares to an original full-year forecast of 34 billion to 39 billion euros ($38.8 billion to $44.6 billion) issued as recently as January.
ASML’s updated gross margin guidance of 54% to 56% also represents a meaningful step up from the 51% to 53% range the company previously communicated.
The upgrades are particularly striking given that ASML’s 2026 revenue guidance now aligns with the low end of the targets the company set for 2030 at its November 2024 investor day.
At that investor day, ASML outlined a path to annual sales of 44 billion to 60 billion euros ($50.3 billion to $68.5 billion) by 2030, with gross margin between 56% and 60%.
Compared to 2025 net sales of 32.7 billion euros ($37.4 billion) and 52.8% gross margin, ASML is on track to grow revenue by approximately 34.6% year over year while simultaneously expanding margins.
The accelerated trajectory has fueled fresh speculation that ASML could surpass $3,000 per share and cross the $1 trillion market cap threshold well ahead of earlier 2030 projections.
Strong order intake has also prompted ASML to commit to significant production capacity expansions across its key product lines in 2027 and 2028.
The company plans to add 30% to its 2026 low numerical aperture capacity of around 65 units in 2027, followed by another 30% increase in 2028.
ASML also plans a 30% increase in deep ultraviolet immersion capacity to around 130 units in 2027 and an additional 30% increase in 2028.
These capacity plans signal strong confidence in sustained AI-driven chip demand, with ASML continuing to invest in its high numerical aperture extreme ultraviolet systems for next-generation AI chips.
ASML sells its lithography equipment to major chip manufacturers including Taiwan Semiconductor Manufacturing, Samsung Electronics, and Intel, sitting at the top of the semiconductor value chain.
The company’s systems are used to produce both logic chips, such as graphics processing units and custom AI chips, and memory chips including high-bandwidth memory and dynamic random-access memory.
That dual exposure to logic and memory chip production gives ASML a broad and durable position regardless of where supply bottlenecks emerge within the semiconductor industry.
Just one year ago, ASML shares fell sharply after management cautioned that it could not confirm growth in 2025 amid macroeconomic and geopolitical uncertainty tied to U.S.-China trade tensions.
The market’s negative reaction proved premature, as ASML has since more than doubled in share price, demonstrating that management’s conservative language reflected prudence rather than weakness.
At 48.5 times forward earnings, ASML carries a premium valuation that leaves little room for error, meaning any slowdown in AI-driven demand could weigh heavily on the stock.
