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ASML Posts Record €11.7 Billion Quarter and Says It Can't Build Machines Fast Enough Through 2028
- ASML reported record total sales of €11.7 billion and net income of €5.0 billion for Q3 2026. Gross margin was 57.5%.
- It sold €8.4 billion of chipmaking machines, including €4.1 billion of its most advanced EUV systems.
- Guidance: €14.2–15.2 billion of sales in Q4 and €44–45 billion for full-year 2026.
- ASML expects its planned supply to fall short of demand in 2027 and 2028 and is studying more capacity. Some customers want to place orders for 2029 and even 2030.
- Customer prepayments jumped €5.7 billion in one quarter to €9.3 billion.
What happened
ASML, the Dutch company that builds the machines used to make advanced computer chips, reported third-quarter results early on Wednesday, October 14.
Everything was a record:
| Measure | Q3 2026 |
|---|---|
| Total net sales | €11.7 billion (record) |
| Net income | €5.0 billion |
| Gross margin | 57.5% |
| System sales | €8.4 billion (EUV €4.1B, other €4.3B) |
| Service and upgrades | €3.3 billion, above guidance |
Source: ASML, October 14, 2026.
The bigger news: demand is outrunning supply
ASML's most important line wasn't about the past quarter. It was about the next two years.
The company said its currently planned production for 2027 and 2028 will fall short of what customers want. It is studying whether to add more capacity for 2028, beyond the 30% increase it had already announced.
Two more signs of strong demand:
- Customers are booking years ahead. Some want to place orders for 2029 and even 2030.
- They are paying up front. Long-term customer prepayments rose by €5.7 billion in a single quarter to €9.3 billion. For the four quarters before that, they had sat around €3.4 to €3.6 billion. Companies don't send billions in advance unless they are sure they need the machines.
Why ASML is unique
Every advanced chip, from Nvidia's AI processors to the memory inside data-centre servers, is printed using light. The most advanced chips need extreme ultraviolet (EUV) light. ASML is the only company in the world that makes EUV machines. Each one costs hundreds of millions of euros.
That makes ASML a kind of early-warning system. Chipmakers order its machines years before they build new factories. When ASML says it is sold out, it means chipmakers plan to keep expanding.
The timing: one day after the Seoul crash
The report landed a day after Korean chip stocks crashed. On October 13, the KOSPI fell 5.5%, with SK Hynix down 10% and Samsung down 7%, on fears that Chinese memory makers will flood the market. See our report on the KOSPI sell-off.
ASML's numbers point the other way. Its customers, including the memory makers, are still spending heavily on new capacity. Both can be true: total demand can grow while competition squeezes profits for individual chipmakers.
What it means for you
If you own a broad index fund: You already own ASML. It is one of the largest companies in most European and international index funds.
If you're tempted by chip stocks: This sector swings hard. Memory prices, Chinese competition and AI spending plans can move shares 10% in a day. Our explainer on the semiconductor cycle shows why booms and busts are normal here.
If you want AI exposure without picking winners: ASML sells to almost every chipmaker, which spreads the bet. A broad semiconductor ETF spreads it further. See how to invest in AI without picking winners.
What to watch next
- TSMC's quarterly results, usually released in mid-October. TSMC is one of ASML's biggest customers.
- China. Export rules limit which machines ASML can sell there.
- Q4 sales of €14.2–15.2 billion would make it ASML's biggest quarter ever.
Frequently asked questions
What did ASML report for Q3 2026?
ASML reported record total net sales of €11.7 billion and net income of €5.0 billion for the third quarter of 2026, with a 57.5% gross margin. System sales were €8.4 billion, of which €4.1 billion was EUV, and service and upgrade sales were €3.3 billion.
What is ASML's guidance for 2026?
ASML expects fourth-quarter 2026 sales of €14.2 billion to €15.2 billion with a gross margin around 57%, and full-year 2026 sales of €44 billion to €45 billion with a gross margin around 56%.
Why does ASML matter for AI?
ASML is the only company in the world that makes extreme ultraviolet (EUV) lithography machines, which are needed to print the most advanced chips, including the processors and memory used in AI data centres. When chipmakers plan new factories, they order ASML machines years in advance.
Does ASML still report bookings?
No. ASML stopped publishing a quarterly bookings figure. Investors now judge demand from management comments, such as its statement that supply will fall short in 2027 and 2028, and from customer prepayments, which rose by €5.7 billion in the quarter.
Can I buy ASML stock from the US or Canada?
Yes. ASML trades on the Nasdaq in US dollars under the ticker ASML, as well as in Amsterdam. Most US and Canadian brokers offer it. It is also held in many international and semiconductor ETFs.
Primary sources
Data & disclaimer: This article is for educational purposes only and is not financial or investment advice. Figures reflect data available as of Oct 14, 2026, and conditions change — always confirm current pricing, rates and rules with the provider before you act. Written by Elizabeta Dimoska. See our editorial standards and disclosure.
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