ASML Profit Beats Forecasts as Customers Look Ahead to 2029 and 2030 Capacity

ASML (Euronext Amsterdam and Nasdaq: ASML), the Dutch maker of the EUV lithography machines used to print advanced chips, reported third-quarter net income of €4.96bn today, against about €4.1bn expected by analysts, according to LSEG. ASML is the only supplier of EUV tools.

The shares closed yesterday at €1,509.60 in Amsterdam, down 4.2% and below the 5 October closing high of €1,656.20. That session came before the results, so it does not reflect them.

Profit was helped by a gross margin of 57.5%, up from 54.0% in the second quarter, when net income was €2,918m. Net sales were €11.66bn, slightly below the €11.72bn LSEG consensus (the average analyst forecast).

ASML sold 113 new lithography systems, up from 86 in the second quarter, and installed base sales, from servicing machines already in customers’ hands, were €3,289m. It said order book momentum continued to increase quarter on quarter, without giving a figure.

For the fourth quarter ASML guided to net sales of €14.2bn to €15.2bn and a gross margin of about 57%. Full-year sales guidance is now €44bn to €45bn, from €43bn to €45bn, so only the bottom of the range was lifted.

The demand outlook carried the message. Chief executive Christophe Fouquet said ASML now expects its planned supply for 2027 and 2028 will not fully meet customer demand, and that it is investigating more 2028 capacity beyond a planned 30% increase, in low-NA EUV and DUV immersion tools.

In light of their demand visibility, some customers are expressing an interest in placing orders with us for 2029 and even 2030.

Christophe Fouquet, chief executive, ASML

The results land after Tuesday’s fall in tech shares. Charu Chanana of Saxo Markets told AFP that ASML’s and TSMC’s results serve as a useful health check on the AI investment cycle. TSMC reports later this week.