ASML Q2 2026: Revenue and EPS Beat, Strong Guidance, and EUV Momentum

ASML's Q2 2026 revenue came in at €10.67 billion, surpassing the street estimate of €10.23 billion by 4.3%. The company's EPS of €8.69 beat the estimate of €7.98 by 8.9%. This performance is a significant improvement over the prior quarter, where revenue grew 21.7% QoQ and 38.8% YoY.

The revenue beat was driven by strong performance across all segments. Net system sales were €6.6 billion, with €3.8 billion from EUV system sales, including the sale of one High-NA system, and €2.8 billion from non-EUV system sales. Installed Base Management (IBM) sales were €2.8 billion, nearly €300 million above guidance, primarily due to additional upgrade business. CFO Roger Dassen noted, "In the second quarter of 2026, total net sales were EUR 9.3 billion, which is above the high end of our guidance as a result of higher-than-expected Installed Base Management sales."

ASML's gross margin for the quarter was 54%, above guidance, driven by the high-margin components within the IBM business. This strong margin performance is a testament to ASML's focus on high-margin segments and its ability to capitalize on the growing demand for advanced lithography solutions.

ASML provided a strong outlook for Q3 and the full year 2026. The company expects Q3 net sales to be between €11.0 billion and €12.0 billion, with a gross margin between 55% and 57%. For the full year, ASML now expects total net sales between €43 billion and €45 billion, with a gross margin between 54% and 56%.

ASML's R&D expenses for Q3 are expected to be around €1.2 billion, and SG&A is expected to be around €0.4 billion. This continued investment in R&D underscores ASML's commitment to innovation and maintaining its technological leadership in the semiconductor equipment market.

ASML's EUV system sales and shipments continue to be a key driver of growth. The company expects to ship around 65 Low-NA EUV systems this year, resulting in year-over-year EUV net system sales growth of over 45%. For immersion DUV, ASML expects about 130 shipments this year, similar to the output level in 2025.

ASML's High-NA EUV systems are gaining traction, with the sale of one High-NA system in Q2. CFO Roger Dassen noted, "Net system sales were EUR 6.6 billion, which included EUR 3.8 billion from EUV system sales, including sales of one High-NA system, and EUR 2.8 billion from non-EUV system sales." The company expects growth in non-EUV net system sales of around 25% this year, driven by strong demand for immersion DUV systems and metrology and inspection solutions.

ASML's Installed Base Management (IBM) business continues to be a significant contributor to the company's growth. IBM sales for Q2 were €2.8 billion, nearly €300 million above guidance, driven by additional upgrade business. For Q3, ASML expects IBM sales to be around €2.9 billion.

ASML expects IBM sales to grow over 30% this year, driven by service revenue from its expanding EUV installed base and customer demand for performance and productivity upgrades.

ASML's Q2 2026 earnings call maintained a positive tone, with sentiment and guidance tone scores of 0.36 and 0.33, respectively. The call was more confident in its prepared remarks compared to Q1 2026, with a prepared sentiment score of 0.02. CFO Roger Dassen's comments on the company's strong financial performance and optimistic outlook for the future were well-received.

Full call-over-call delivery metrics are in the tone history.

CFO Roger Dassen highlighted the company's strong financial performance, stating, "Net income in Q2 was EUR 2.9 billion, representing 31.3% of total net sales, resulting in earnings per share of EUR 7.59." He also noted the company's strong free cash flow of €1.3 billion and the share buyback program, where ASML purchased around €1.1 billion worth of shares under the current 2026-2028 share buyback program.

Analysts were generally positive about ASML's Q2 performance and outlook. CJ Muse noted, "We're clearly seeing in the numbers here with top line 35% growth and OpEx implicitly grown only about 6%." This indicates that ASML is effectively managing its expenses while driving significant revenue growth. Nigel van Putten also commented on the company's EUV productivity, stating, "I'm assuming that if you look at the outlook today and given your previous comments, that maybe 45% productivity is really the lower end of what we should model for revenue in terms of EUV over that period."

ASML's strong performance and outlook have positive implications for its customers and suppliers. Key customers such as TSMC, Samsung, Intel, Micron, SK Hynix, Kioxia, and X-Fab Silicon Foundries are likely to benefit from ASML's advanced lithography solutions, particularly in the areas of EUV and DUV.

The continued investment in advanced nodes, particularly for AI applications, is driving demand for ASML's systems. Christophe Fouquet noted, "In logic, there is a continued investment, not only to enable the expansion of 3 nm capacity in support of the latest generation of AI accelerators, but also at both the 5 nm and the 4 nm nodes to support the diverse set of chips required by AI product." This demand is expected to support ASML's growth in the coming quarters.

Suppliers such as Gudeng Precision, Marketech International, Pfeiffer Vacuum, VAT Group, Canatu, Corning, and Mitsui Chemicals are likely to see increased demand for their products and services. ASML's focus on high-margin segments and its expanding installed base will drive demand for high-precision components and sub-systems.

ASML's performance in Q2 2026 stands out compared to its peers in the wafer fab equipment (WFE) subsector. While ASML reported a 38.8% YoY revenue growth, peers such as 7751.T, TOELY, 6361.T, 6302.T, 7731.T, 7735.T, 6728.T, and 6525.T reported more modest growth rates ranging from -4.6% to +28.2%.

ASML's gross margin of 54% is significantly higher than the average gross margin of its peers, which ranges from 25.0% to 46.8%. This margin leadership is a result of ASML's focus on high-margin segments such as EUV and IBM services. CFO Roger Dassen noted, "Gross margin for the quarter was above our guidance at 54%, primarily due to the contribution of very high-margin components within our Installed Base Management business."