ASML (ASML) Q3 2026 Investor Call earnings summary

Executive summary

• Q3 2026 net sales reached a record €11.662B, with net income of €4.960B and gross margin of 57.5%.

• AI-driven demand forecasts strengthened, and planned 2027–2028 capacity is expected to fall short of customer demand.

Financial highlights

• Q3 net system sales were €8.373B, including €4.1B of EUV sales and one High-NA EUV system; installed base management sales were €3.289B.

• Net income was €4.960B, basic EPS €12.95 and diluted EPS €12.93; net income included ~€0.5B from the Mistral AI investment valuation increase.

• Operating income was €5.173B; R&D costs were €1.174B and SG&A costs €353M.

• Operating cash flow was €11.798B and non-GAAP free cash flow €11.351B; cash and short-term investments totaled €12.735B at quarter-end.

• Lithography system sales were 121 units, versus 91 in Q2 2026 and 72 in Q3 2025.

Outlook and guidance

• Q4 net sales guidance is €14.2B–€15.2B, including ~€3.7B in installed base management sales; gross margin ~57%, R&D ~€1.2B and SG&A ~€0.4B.

• FY 2026 net sales guidance is €44B–€45B, gross margin ~56%, and annualized effective tax rate ~17%; expected sales growth is ~36%.

• FY 2026 sales growth outlook: EUV >45%, non-EUV systems ~20%, installed base management ~50%; logic system sales ~10% and memory ~75%.

• China is expected to represent ~20% of FY 2026 net sales; Q4 gross margin is lower than Q3 mainly due to ramp costs.

• No new 2027–2028 output targets were set; 2028 capacity expansion is being considered beyond the previously investigated 30% increase for low-NA EUV and immersion.