ASML Holding (ASML)

ASML (ASML) is the Dutch company that makes the lithography machines used to print computer chips, and the only maker of extreme ultraviolet (EUV) systems. Those tools enable the leading-edge nodes that fabricate Google’s TPUs. In Q2 2026 it reported total net sales of €9.3 billion and net income of €2.9 billion.

What does ASML do?

ASML makes photolithography systems, the machines that print the microscopic circuit patterns onto silicon wafers. Lithography is the single most critical step in chip manufacturing, and ASML’s importance comes from a near-total monopoly at the leading edge: it is the only company in the world that builds extreme ultraviolet (EUV) lithography machines, the tools needed to manufacture the most advanced chips. In Q2 2026 it sold 86 new lithography systems and 5 used ones (ASML, Jul 15, 2026).

ASML’s revenue splits into two parts. Net system sales, the machines themselves, were €6.6 billion in Q2 2026. Installed Base Management sales, which is service and field upgrades on the machines already running in customer fabs, added €2.76 billion. ASML is a foreign private issuer that reports in euros under US GAAP; the figures here come from its quarterly press release filed with the SEC on Form 6-K.

Why is ASML part of the Google value chain?

The Google value chain concept follows AI compute from Alphabet’s designs down to the equipment that makes the chips possible, and ASML is that final layer. TSMC fabricates Google’s TPUs on 3-nanometer and more advanced nodes, but those nodes cannot be patterned at all without EUV lithography, and EUV machines come from ASML alone. The Ironwood TPU built on TSMC’s leading-edge process (The Next Web) ultimately traces back to an ASML tool. That is what places ASML at the base of the chain: a true chokepoint that the entire AI compute stack rests on.

The position gives ASML unusual visibility into demand. When Alphabet and other hyperscalers raise their AI capex, TSMC and its peers order more leading-edge capacity, and that capacity needs ASML machines. On the Q2 2026 call, ASML said order intake stayed extremely strong through the first half and customers kept accelerating their capacity plans, prompting the company to plan a 30% addition to its 2027 low-NA EUV and DUV immersion capacity.

“Ongoing AI-related investments and continued progress in AI technologies are driving demand for advanced Logic and Memory chips, further strengthening the semiconductor industry’s growth outlook. Our customers, in turn, continue to accelerate their capacity expansion plans.”

— Christophe Fouquet, President and CEO of ASML, Q2 2026 results

What did ASML report most recently?

In Q2 2026 (the quarter ended June 28, 2026), ASML posted total net sales of €9.3 billion (€9,326 million), above its guidance, with a gross margin of 54.0%, also above guidance (ASML, Jul 15, 2026). Net income was €2.92 billion (€2,918 million) and basic EPS was €7.59. Net system sales were €6.6 billion and Installed Base Management sales were €2.76 billion, with the beat driven primarily by higher-than-expected Installed Base Management sales. ASML also bought back about €1.1 billion of shares in the quarter and declared an interim 2026 dividend of €1.88 per ordinary share, payable August 5, 2026.

What is ASML’s guidance?

ASML raised its full-year 2026 outlook again on continued strong demand. It now expects total net sales of €43 billion to €45 billion for 2026, up from €36 billion to €40 billion, with a gross margin of 54% to 56% (ASML, Jul 15, 2026). For Q3 2026 it guided to net sales of €11.0 billion to €12.0 billion and a gross margin of 55% to 57%. Management attributed the increase to extremely strong first-half order intake and customers expanding capacity for AI Logic and Memory chips, which is prompting ASML to add roughly 30% to its 2027 EUV and DUV immersion capacity.

What are the risks for ASML?

• Export controls. ASML’s most advanced machines are subject to export restrictions, particularly on sales to China. Changes in policy can swing a meaningful slice of demand, and the company itself flags this as a source of uncertainty in its guidance.
• Customer concentration. A small number of leading-edge logic and memory makers, chiefly TSMC, Samsung, and Intel, buy most of ASML’s EUV systems. Their capex cycles drive ASML’s revenue.
• Lumpy revenue. EUV machines are large, expensive, and shipped in small numbers, so timing of a handful of systems can move a quarter materially.
• Long lead times. The complexity of EUV and High-NA EUV means ramping capacity is slow, which can cap upside if demand outruns ASML’s ability to build machines.

Related securities, concepts & terms

• Google (Alphabet) AI Value Chain parent
• Taiwan Semiconductor (TSM) sibling
• Alphabet (GOOGL) sibling

Related indices & ETFs

Frequently asked questions about ASML

Sources & references

1. ASML reports €9.3 billion total net sales and €2.9 billion net income in Q2 2026 (Form 6-K) · ASML Holding NV / SEC EDGAR, 2026-07-15
2. ASML reports €9.3 billion total net sales and €2.9 billion net income in Q2 2026 (Investor Relations) · ASML Holding NV, 2026-07-15
3. ASML reports €8.8 billion total net sales and €2.8 billion net income in Q1 2026 (Form 6-K, Exhibit 99.1) · ASML Holding NV / SEC EDGAR, 2026-04-15
4. ASML financial results overview (Q2 2026 results published July 15, 2026) · ASML Holding NV, 2026-07-15
5. Google launches Ironwood TPU built on EUV-patterned TSMC leading-edge nodes · The Next Web, 2025-04-09
6. ASML financial calendar (upcoming results and events) · ASML Holding NV, 2026-07-20