ASML's Q3 net income beats, helped by demand for productivity upgrades in installed systems

Overview

• Netherlands semiconductor equipment supplier's Q3 revenue was a slight miss, net income beat expectations

• Company Q3 gross margin improved to 57.5%

• Company repurchased €4.1 bln in shares during Q3

Outlook

• ASML sees Q4 2026 net sales between €14.2 bln and €15.2 bln

• Company expects Q4 2026 gross margin around 57%

• ASML expects 2026 net sales of €44 bln to €45 bln, gross margin around 56%

Result Drivers

• PRODUCTIVITY UPGRADES - Co said strong demand for productivity upgrades in Installed Base Management drove gross margin above guidance

• SYSTEM SALES - Co reported increased sales of new lithography systems in Q3

• AI INVESTMENTS - Co said rising customer equipment demand was driven by expectations for AI-related investments

Company press release:

Key Details

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 31 "strong buy" or "buy", 3 "hold" and 2 "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for ASML Holding N.V. is €2,100.00, about 39.1% above its October 13 closing price of €1,509.60

• The stock recently traded at 30 times the next 12-month earnings vs. a P/E of 46 three months ago

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)