ASML Stock Falls Despite Blowout Quarter

ASML Holding N.V. (NASDAQ: ASML) shares are trading lower on Wednesday, July 15, 2026, despite the Dutch semiconductor equipment maker delivering a blowout second quarter, raising its full-year 2026 outlook, and confirming a landmark technology milestone with Intel Corporation (NASDAQ: INTC). ASML reported Q2 2026 earnings of $8.82 per share, beating the Wall Street consensus estimate of $7.98, on revenue of $10.84 billion well above the $10.28 billion analysts were expecting. Net sales came in at €9.326 billion, with net income of €2.918 billion and gross margin expanding to 54.0%. ASML sold 86 new lithography systems during the quarter, up from 67 in Q1. Installed Base Management sales rose to €2.762 billion. CEO Christophe Fouquet said ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced logic and memory chips, adding that customers "continue to accelerate their capacity expansion plans." Based on that momentum, ASML now plans to add 30% to its 2026 low-NA EUV capacity of around 65 units for 2027, with a similar 30% expansion planned for DUV immersion capacity of around 130 units, and is evaluating another 30% for both in 2028. For the third quarter, ASML guided revenue of €11 billion to €12 billion with a gross margin of 55% to 57%. The company raised its full-year 2026 outlook to net sales of €43 billion to €45 billion, up from prior guidance of €36 billion to €40 billion, with a gross margin of 54% to 56%. Despite tightening U.S. export restrictions, including a proposed bipartisan bill to block Deep Ultraviolet (DUV) machine sales, ASML said China will still account for roughly 20% of its total net sales this year. Separately, ASML confirmed that Intel Foundry has begun high-volume manufacturing of a subset of Intel Core Ultra Series 3 "Panther Lake" processors using ASML's High-NA EUV technology on the Intel 18A process at Intel's Hillsboro, Oregon facility the first shipment of a high-volume logic product ever manufactured with High-NA EUV. Fouquet called it "a very important milestone," adding on the earnings call that "some of the product you buy today from Intel have been created with a High-NA machine." High-NA EUV systems cost roughly $400 million each, and fewer than a dozen exist globally. Despite the beat, raise, and milestone, ASML shares opened up more than 4% before reversing sharply, with Morningstar cautioning the stock appears fully valued after a strong year-to-date run. --- #ASML #stocks #AI 🌐 Find more market-moving insights at https://www.benzinga.com — your one-stop destination for the latest financial news, data, and expert analysis to stay ahead of the markets. 🖥️ Want the same tools the pros use—without the $10K Bloomberg terminal? Benzinga Edge gives you real-time portfolio alerts, weekly stock picks, and pro-grade research in one command center. 👉 https://bit.ly/4unSKiB ------------------------------------------------------------------------------------ 📲 Follow us on socials @benzinga 🔔 Subscribe To The Channel: https://www.youtube.com/@Benzinga ------------------------------------------------------------------------------------ ⚠️ Disclaimer: Investing in financial markets carries risk, and there are no guaranteed returns. All information is for educational purposes only and should not be taken as financial advice. Always do your own research and speak with a qualified financial advisor before making investment decisions. Only invest what you can afford to lose. Past performance does not guarantee future outcomes.