Semiconductor equipment giant ASML on Wednesday delivered mixed results for the third quarter but reported strong orders and gave upbeat 2026 guidance. ASML stock rose on the news.
The Dutch maker of advanced photolithography gear earned the equivalent of $6.37 a share on sales of $8.71 billion in the September quarter. Analysts polled by FactSet had expected ASML to earn $6.36 a share on sales of $9.02 billion. In the year-earlier period, ASML earned $5.76 a share on sales of $8.14 billion, FactSet said. ASML reports financial results in euros.
ASML reported net bookings in the third quarter of 5.4 billion euros ($6.27 billion), up 105% from the same period last year. Analysts had been looking for Q3 net bookings of 4.9 billion euros.
For the fourth quarter, ASML predicted sales of 9.5 billion euros ($11.05 billion), based on the midpoint of its guidance. Analysts were modeling 9.3 billion euros ($10.82 billion).
For full-year 2025, ASML sees sales rising 15% year over year, with a gross profit margin of about 52%. The company expects 2026 sales to at least match this year's sales. However, it expects sales to decline in China.
ASML makes advanced lithography equipment for etching tiny circuits onto semiconductors. It is the world's only manufacturer of extreme ultraviolet (EUV) lithography equipment. ASML's top-of-the-line equipment is used to produce cutting-edge chips for artificial intelligence applications.
ASML Stock Is A Recent Breakout
"On the market side, we have seen continued positive momentum around investments in AI, and have also seen this extending to more customers, both in leading-edge Logic and advanced DRAM (dynamic random-access memory)," Chief Executive Christophe Fouquet said in a news release. "On the other hand, we expect China customer demand, and therefore our China total net sales in 2026 to decline significantly compared to our very strong business there in 2024 and 2025."
On the stock market today, ASML stock climbed 2.7% to close at 1,009.81.
On Oct. 1, ASML stock broke out of a long cup-with-handle base at a buy point of 977.48, according to IBD MarketSurge charts. That handle is tiny and didn't show up on weekly charts. On a weekly chart, ASML has a cup-with-handle base with a 1,059 buy point.
ASML stock is on two IBD lists: Stock Spotlight and Tech Leaders.
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