ASML shares climbed 6.0% following the release of second-quarter 2026 results that outpaced market forecasts. The Veldhoven-based lithography equipment maker reported net sales of €9.33 billion and net income of €2.92 billion, both figures comfortably above analyst consensus estimates of roughly €8.8 billion in sales and €2.62 billion in net income.
On a per-share basis, earnings were €7.59, a beat of €0.60 versus expectations. Management attributed continued outperformance to robust, AI-related investment in advanced chip manufacturing capacity.
The result that captured investor attention was ASML's decision to raise its revenue outlook for full-year 2026 to a range of €43–45 billion, a material increase from prior guidance of €36–40 billion and well above the market consensus near €39.4 billion. The company also lifted its full-year gross margin projection to 54–56% and provided Q3 2026 net sales guidance of €11–12 billion, again ahead of analysts' forecasts.
To align supply with accelerating demand, ASML said it will expand production capacity for its critical chipmaking systems by approximately 30% to handle the flow of customer orders. Management described the demand as structural in nature and tied it directly to continued AI-related investment in advanced logic and memory chips, with customers accelerating capacity expansion plans.
Analyst sentiment heading into the report had already been strong. Morgan Stanley named ASML its top pick and raised its price target to €1,830 prior to the announcement. RBC Capital increased its target to $2,000, and Deutsche Bank moved its target to €1,800. Those pre-earnings upgrades set a high bar that the company surpassed with its results and guidance.
Market context was supportive. U.S. equities were modestly firmer, with the Nasdaq up 0.8% and the S&P 500 rising 0.2%, providing a favorable backdrop for high-growth technology stocks. ASML's weighting in the AEX index also amplified the local market reaction.
Taken together - a clear earnings beat, a marked guidance upgrade, a commitment to a substantial capacity expansion, and a well-positioned analyst community - these factors propelled ASML to a session high of €1,678.2, bringing the stock near its 52-week high of €1,741 and reinforcing its role as a principal beneficiary of the AI infrastructure build-out within European equities.