- ASML Holding reported strong Q3 2026 earnings per share of $14.65, significantly exceeding estimates, despite revenue slightly missing projections.
- The company achieved 55% year-over-year sales growth and a robust 57.50% gross margin, largely driven by customer upgrades and servicing revenue.
- Demand for ASML’s advanced chip manufacturing equipment continues to outpace capacity through at least 2028, evidenced by substantial new customer down payments and multiyear order bookings.
ASML Holding (NASDAQ: ASML) reports third-quarter 2026 earnings before the market opens on October 14. The Dutch company, a key player in semiconductor equipment manufacturing, makes machines used to produce advanced chips. Its earnings per share are $14.65, above the $12.17 estimate, while revenue of $13.05 billion is slightly below the $13.14 billion estimate.
ASML reports 55% year-over-year sales growth. It also reports net sales of €11.70 billion and net income of €5.00 billion for the quarter. Its gross margin—the share of sales left after direct production costs—is 57.50%. Customer upgrades help lift that margin, with revenue from servicing and upgrading installed machines reaching €3.30 billion, €400.00 million above guidance.
The strong quarter leads ASML to raise its 2026 gross margin guidance to 56.00%. Chief Financial Officer Roger Dassen attributes much of the quarter’s margin to upgrades and other revenue from existing machines, as highlighted by MarketBeat. As highlighted by Seeking Alpha, pricing based on the value of its machines and newer High NA EUV systems, crucial for advanced chip production, could provide further upside.
Demand for ASML’s cutting-edge semiconductor manufacturing equipment still exceeds ASML’s capacity through at least 2028. New customer down payments total €5.70 billion, alongside multiyear order bookings. ASML sees order interest through 2030 and is actively working to expand capacity, as highlighted by CNBC International TV.
ASML trades at a trailing price-to-earnings ratio of 56.04, meaning its share price is 56.04 times its earnings over the past year. Its price-to-sales ratio is 16.85. Its debt-to-equity ratio is 0.09, while its current ratio is 1.33, indicating it has €1.33 in short-term assets for each €1.00 in short-term liabilities.
