ASML reported record financial results for the third quarter of 2026, with net sales reaching €11.7 billion and net income hitting approximately €5.0 billion. Despite these figures exceeding market expectations, the company's stock declined by 12% throughout October.
The manufacturer raised its full-year 2026 sales guidance to a range of €44–45 billion. Projections for the fourth quarter indicate sales between €14.2–15.2 billion with a gross margin of 56–57%. EUV lithography systems accounted for 49% of system sales, with production capacity fully booked until 2028.
The stock price drop occurred amid a broader market sell-off in the semiconductor and AI sectors. Negative sentiment was compounded by disappointing forecasts from Intel and supply chain warnings from Lam Research, alongside concerns regarding inflation and the long-term profitability of AI infrastructure investments.
ASML maintains a monopoly on EUV technology, which is essential for manufacturing advanced logic and memory chips. While the company's order backlog remains strong, investors are now focused on whether the firm can maintain production efficiency and meet its financial targets in the coming quarter.
