ASML books record 11.7 billion euro quarter as AI demand outruns 2027 supply

ASML, the Veldhoven-based maker of extreme-ultraviolet lithography machines that enable the world's most advanced chips, reported a record third quarter on October 14 that reshaped Thursday's trading. The group posted 11.7 billion euros in net sales, up 55% year-on-year, and net income of 4.96 billion euros - more than double the figure from a year earlier - with basic earnings per share of 12.95 euros. Gross margin came in at 57.5%, operating margin at 44.4%, and free cash flow at 11.4 billion euros. ASML raised its full-year 2026 revenue outlook to between 44 and 45 billion euros with a gross margin of around 56%. Most striking was its guidance for the two years beyond: the company told investors that its supply as currently planned for both 2027 and 2028 will not fully meet the demand of its customers, after clients kept lifting their short- and medium-term orders on the back of AI-related investments. The report, read alongside TSMC's record quarter on October 15, underscored how deeply AI capex now dominates the semiconductor supply chain and amplified volatility in global chip stocks.