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Earnings deep dive · Tier A Semi

ASML Q2 2026 — The IBM Beat and the Capacity Double-Down

The quarter beat on service, not systems. The number that matters is the 30% capacity add for 2027 — the clearest read yet on where AI-era litho demand is heading.
Published · Post-print analysis · ASML · For analysts covering leading-edge logic, memory capex, and semi-cap equipment

The setup

ASML walked into the print with a stock that had already re-rated hard into the number — shares had run toward the high-$1,700s / ~€1,650 on AI-capex optimism, and the options market was pricing a mid-single-digit move. The bar wasn't the headline sales line, which ASML guides tightly and rarely misses; it was forward demand signal. After a 2025 defined by China-export overhangs and a soft memory patch, the question analysts actually wanted answered was whether hyperscaler and foundry capex is translating into durable litho orders — or whether 2026 was a pull-forward that fades into 2027.

The answer, in a sentence: demand is not fading, and management put capacity money behind that view.

ASML Q2 2026 Income Statement Q2 2026 · quarter ended · US GAAP · € in millions Revenue €9,326.5M +21% Y/Y €6,564.8M +17% Y/Y Net system sales EUV and DUV lithography systems €2,761.7M +32% Y/Y Service & field option sales installed-base management Gross profit €5,035.4M 54.0% margin +30bps Y/Y Cost of revenue (€4,291.1M) 46.0% of sales Operating profit €3,456.1M 37.1% margin +250bps Y/Y Operating expenses (€1,579.3M) Net profit €2,917.6M 31.3% margin +27% Y/Y Tax, net of interest & equity income (€538.5M) €609.6M tax less €30.0M interest and €41.1M equity-method profit R&D (€1,276.6M) 13.7% of sales SG&A (€302.7M) 3.2% of sales Source: ASML Q2 2026 financial statements (US GAAP) · chart: tkal.news
Where ASML's Q2 2026 sales euro went: 54.0% survives cost of sales, 37.1% survives operating expense, 31.3% lands as net income — service and field options are now 30% of sales. Y/Y percentages are computed from the statement's two quarterly columns (Q2 2025: €7,691.7M sales, €5,596.1M systems, €2,095.6M service, 53.7% gross margin, 34.6% operating margin, €2,290.3M net income). Tax, net = €609.6M − €30.0M interest and other, net − €41.1M profit related to equity method investments: €3,456.1M − €538.5M = €2,917.6M. Three months ended .

The numbers

Q2 total net sales came in at €9.33B against a gross margin of 54.0%, both above the guided range, with net income of €2.92B and basic EPS of €7.59. The composition matters more than the beat: the upside was carried by Installed Base Management (IBM) sales of €2.76B — service and field upgrades — which ran roughly €300M above plan. New-system units were 86 (plus 5 used). This was a services-led beat on a stable systems base, which is a higher-quality mix than a lumpy tool pull-in.

The guide is where the real move was. Q3 2026 is set at €11.0–12.0B in sales with a 55–57% gross margin — a step-up that implies a materially stronger back half. And full-year 2026 was raised to €43–45B at 54–56% GM, up from a prior €36–40B frame — the second upward revision this year. Capital return continued alongside: ~€1.1B of buyback executed in Q2 under the 2026–2028 program, and a €1.88/share interim dividend payable . China held at ~20% of sales. Shares traded up ~2% on the day (ADS ~$1,815 unverified) — a contained reaction that tells you a lot of good news was already in.

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