🚨 ASML REPORTS RECORD RESULTS! DEMAND FOR AI CHIPS EXCEEDS PRODUCTION CAPACITY! 📊
Dutch giant ASML today published its third-quarter 2026 results. The company saw extraordinary revenue and profitability growth and raised its full-year guidance!
🔷 KEY Q3 2026 RESULTS:
🔹 Revenue: €11.66bn (estimate €11.71bn) 🟠 +55% year-on-year
🔹 Earnings per share: €12.95 (estimate €10.87) 🟢 +136% year-on-year
🔹 Net profit: €4.96bn (estimate €4.06bn) 🟢 +133% year-on-year
🔹 Gross margin: 57.5% (estimate 54.8%) 🟢
🔹 Service and upgrade revenue: €3.29bn (+68% year-on-year)
🔹 New lithography systems sold: 113 (66 a year ago)
🔷 COMPANY GUIDANCE:
🔹 Q4 2026 revenue: €14.2–15.2bn (estimate €13.8bn) 🟢
🔹 Q4 gross margin: ~57% (estimate 54.9%) 🟢
🔹 Full-year 2026: €44–45bn (estimate €43.73bn) 🟢
🔹 Full-year gross margin: ~56% (estimate 54%) 🟢
🔷 SHAREHOLDER CAPITAL RETURNS:
🔹 Share buybacks: €4.1bn during the quarter
🔹 Ongoing dividend: €1.88 per share
🔥 THE MOST INTERESTING PART IS YET TO COME!
ASML management said current capacity plans for 2027 and 2028 likely won't be enough to cover customer demand!
The company is therefore considering further capacity expansion. Some customers are even showing interest in equipment deliveries as far out as 2029 and 2030! 🤯
The main driver of this demand is continued investment in artificial intelligence, which is forcing semiconductor makers to expand production capacity.
📌 MY VIEW:
In my opinion, these are exceptionally strong results. Revenue slightly missed one of the analyst consensus estimates, but profitability significantly beat expectations.
However, the outlook is even more important. If ASML truly cannot cover all demand in the coming years, it shows how massive the current investments in AI infrastructure are.
That doesn't automatically mean the stock is cheap at the current price. What will matter is whether the company can expand production capacity fast enough to turn strong demand into further earnings growth.
Despite these results, semiconductor stocks are down several percent in premarket trading: $MU -1.5%, $HY9H.F $SKHY -3%, $AMD -0.7%, $INTC -1%, $AMAT -1.5%, $AVGO -0.5%, $LRCX -2%
What do you think of ASML's results $ASML? Do you hold the company in your portfolio? 👇
