AMSTERDAM — ASML Holding on Wednesday reported better-than-expected second-quarter earnings, raised its full-year 2026 financial outlook and announced plans to expand production capacity, as sustained demand for artificial intelligence chip manufacturing equipment continued to underpin growth despite uncertainty surrounding sales to China.
The Dutch semiconductor equipment maker, the world's only supplier of extreme ultraviolet (EUV) lithography systems used to manufacture the most advanced chips, posted second-quarter net sales of 9.33 billion euros ($10.9 billion) and net income of 2.92 billion euros for the three months ended June 30. Both figures exceeded analysts' expectations compiled by LSEG.
ASML said it now expects full-year 2026 net sales of between 43 billion euros and 45 billion euros, up from its previous forecast of 36 billion to 40 billion euros. The company also forecast third-quarter revenue of between 11 billion euros and 12 billion euros.
Chief Executive Christophe Fouquet said customer investment plans remained robust as semiconductor manufacturers accelerated capacity expansion to meet AI-related demand.
"Our customers in turn continue to accelerate their capacity expansion plans, providing ASML with increased visibility into longer-term demand," Fouquet said in a company statement.
The company said it plans to increase production capacity for both its flagship EUV systems and deep ultraviolet (DUV) lithography machines by about 30% in each of the next two years. ASML also said Intel will use its new High-NA lithography system in manufacturing some of its advanced Panther Lake chips, marking the first announced commercial application of the technology.
The earnings report lifted technology shares in Europe and Asia, with investors viewing the results as further evidence that spending on AI infrastructure remains strong. Global markets also drew support from quarterly reports released by other major companies, including BlackRock and Morgan Stanley, as earnings season gathered pace.
Market participants continued to weigh corporate earnings against broader macroeconomic developments, including easing U.S. inflation pressures and geopolitical tensions that pushed oil prices higher. While rising energy prices limited gains in some markets, ASML's results helped bolster sentiment across semiconductor-related stocks.
Investors are expected to focus next on additional technology-sector earnings, including results from Taiwan Semiconductor Manufacturing Co., for further indications of demand across the global semiconductor supply chain.
