Key Highlights

● Net sales were €11.7 billion, up from €9.3 billion in the second quarter.

● Net income reached €5.0 billion, with a gross margin of 57.5%.

● Fourth-quarter net sales are guided to €14.2 billion to €15.2 billion.

● The interim dividend is €1.88 per share, payable on 4 November 2026.

ASML Holding (NASDAQ:ASML) reported third-quarter 2026 results on 14 October 2026, and the quarter was a strong step up from the previous one. Total net sales were €11,662 million, about 25% higher than the €9,326 million of the second quarter. Net income rose to €4,960 million from €2,918 million, and basic earnings per share were €12.95, compared with €7.59 in the second quarter.

Margins and Shipments

Gross margin improved to 57.5% from 54.0% in the second quarter. The company sold 113 new and 8 used lithography systems, up from 86 new and 5 used in the previous quarter. Installed Base Management sales, which cover upgrades and servicing of machines already in the field, were €3,289 million, compared with €2,762 million.

Guidance and Supply Limits

For the fourth quarter, ASML guided to total net sales of €14.2 billion to €15.2 billion, a gross margin of around 57%, research and development costs of around €1.2 billion and selling, general and administrative costs of around €0.4 billion. For 2026 as a whole it expects net sales of €44 billion to €45 billion and a gross margin of around 56%.

The company gave no financial guidance for 2027. It said its planned supply for 2027 and 2028 will not fully meet customer demand, and that it plans a 30% increase in low-NA EUV and DUV immersion capacity in 2027. That makes capacity, and not demand, the main limit on growth.

Capital Returns and Cash

ASML repurchased about €4.1 billion of shares in the quarter under its 2026 to 2028 programme and declared an interim dividend of €1.88 per ordinary share, payable on 4 November 2026. Cash and short-term investments ended the quarter at €12,735 million, against €7,582 million at the end of the second quarter.

Risks to Track

Results depend on the pace at which ASML can build and ship systems, and on customers’ timing for installing them. Quarter-to-quarter swings in shipments can move revenue and margin, and the large buyback reduces the cash buffer built up in the quarter.

Fourth-Quarter Delivery Test

The next test is whether ASML delivers net sales inside the guided €14.2 billion to €15.2 billion range while holding gross margin near 57%, and how it frames 2027 as the added capacity comes online.