ASML $ASML -1.86% reported third-quarter net income of €5.0 billion on Wednesday, as some customers expressed interest in placing orders for its semiconductor equipment as far out as 2030. The Dutch company also raised the lower end of its full-year sales forecast, now guiding for total net sales of €44 billion to €45 billion, up from a prior floor of €43 billion.
Total net sales for the quarter reached €11.66 billion, with a gross margin of 57.5%. Profit of €4.96 billion cleared the consensus estimate of €4.1 billion by a wide margin, according to CNBC, while revenue fell just short of the €11.72 billion analysts had penciled in, according to CNBC.
Chief Executive Officer Christophe Fouquet said in a statement that customers are increasing their demand forecasts, driven by their assessment of AI-related investment. "In light of their demand visibility, some customers are expressing an interest in placing orders with us for 2029 and even 2030," Fouquet said.
Fouquet also said that supply currently scheduled for 2027 and 2028 will fall short of customer demand, adding that ASML is exploring options to expand its 2028 capacity beyond the 30% growth it had already announced.
For the fourth quarter, ASML expects total net sales of between €14.2 billion and €15.2 billion, with a gross margin of around 57%. China is still expected to represent 20% of total revenue, unchanged from the company's earlier projection, the company said.
ASML stock was up nearly 2% in New York premarket trading on Wednesday, while shares in Amsterdam gained 3%.
The world's sole manufacturer of extreme ultraviolet lithography machines, ASML supplies chipmakers with the equipment needed to produce advanced semiconductors. The company has been closely watched as a bellwether for AI-driven chip demand.
In September, TSMC $TSM +0.17% and Samsung signed on to deploy ASML's High NA extreme ultraviolet lithography machines in their most advanced manufacturing processes, with Samsung eyeing DRAM production by 2028 and TSMC planning to bring the technology into high-volume advanced node output from 2030. Intel $INTC +1.44% had previously become the first chipmaker to ship high-volume logic products manufactured using ASML's High NA EUV technology, using select layers of its Core Ultra Series 3 processors built on Intel's 18A process node.
During the third quarter, ASML purchased around €4.1 billion worth of shares under its 2026–2028 buyback program. An interim dividend of €1.88 per ordinary share will be payable on November 4, 2026, the company said.
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