ASML lifts annual revenue guidance to €45bn on AI demand
ASML smashed second-quarter earnings expectations and raised its full-year guidance, signaling that capital expenditure on AI infrastructure remains robust.
ASML reported second-quarter revenue of €9.3 billion and net income of €2.92 billion, comfortably exceeding analyst estimates of €8.8 billion and €2.62 billion respectively. The Dutch lithography equipment maker cited surging demand for advanced chipmaking machinery driven by artificial intelligence deployments in data centers, smartphones, and personal computers.
The company significantly lifted its full-year revenue guidance to a range of €43 billion to €45 billion, up from an earlier forecast of €34 billion to €39 billion. At the midpoint, this revised outlook represents a 35% increase in annual revenue. For market participants, this rapid upgrade signals that major chipmakers and hyperscalers are maintaining aggressive capital expenditure plans despite broader macroeconomic uncertainties.
Profitability is accelerating alongside this top-line growth. ASML raised its gross margin forecast by three percentage points, targeting a midpoint of 55% compared to 52.8% in 2025. The combination of rising sales and expanding margins points to substantial earnings leverage for the company this year.
To ensure it can meet this elevated demand, ASML is removing potential supply chain bottlenecks. The company stated it is on track to increase the supply of its advanced chipmaking equipment by an additional 30% over the next three years. This capacity expansion is critical for the broader semiconductor industry, as ASML remains the sole supplier of the extreme ultraviolet lithography machines required to manufacture cutting-edge chips.
The demand is being driven by two distinct segments. On the logic side, chipmakers are investing heavily to build capacity for advanced nodes, specifically 5-nanometer, 4nm, 3nm, and 2nm processes, which are essential for AI processing. On the memory side, a severe shortage of chips is forcing manufacturers to accelerate their own equipment purchases.
ASML anticipates memory-related revenue will jump 75% this year as a direct result of this shortage-driven investment. The stock, which has already climbed nearly 50% in 2026, reflects some of this optimism. However, the magnitude of the guidance increase suggests the current infrastructure cycle has more runway than consensus estimates previously priced in.
