Better-than-expected quarterly earnings and robust AI-driven orders prompted the chip equipment maker to lift its outlook and expand production capacity.
ASML has raised its financial outlook for 2026 after reporting stronger-than-expected second-quarter results, driven by robust demand for semiconductor manufacturing equipment used in artificial intelligence (AI) chip production.
The Dutch lithography equipment maker now expects 2026 net revenue of €43 billion to €45 billion, up from its previous forecast of €36 billion to €40 billion. At the midpoint, the revised guidance represents a 16 per cent increase over the earlier outlook.
For the quarter ended June 30, ASML posted revenue of €9.33 billion, exceeding analysts’ expectations of €8.80 billion. Net income reached €2.92 billion, compared with consensus estimates of €2.62 billion. The strong performance lifted the company’s shares by nearly 6 per cent in early trading.
To meet growing demand, ASML said it plans to increase manufacturing capacity for both extreme ultraviolet (EUV) and deep ultraviolet (DUV) lithography systems by 30 per cent annually over the next two years. EUV systems are critical for producing advanced semiconductor nodes, while DUV tools continue to serve mature-node production and customers in China.
Chief executive Christophe Fouquet said AI-driven investment by semiconductor manufacturers has led to exceptionally strong order inflows, with customers accelerating their capacity expansion plans. The increased visibility into long-term demand has supported ASML’s decision to expand production.
The company also disclosed that Intel has begun using ASML’s High-NA EUV lithography system to manufacture selected layers of its next-generation Panther Lake processors, marking one of the first production deployments of the technology.
Despite ongoing U.S.-led export restrictions, ASML expects China to account for around 20% of its sales in 2026. While the company remains prohibited from shipping EUV systems and its most advanced DUV tools to Chinese customers, it continues to supply less advanced DUV equipment for domestic semiconductor manufacturing.
Chief financial officer Roger Dassen said demand from Chinese chipmakers remains strong, particularly for logic chip production serving AI, smartphones and computing applications. However, he noted that proposed U.S. legislation aimed at tightening export controls could pose an additional business risk for the company.
