ASML reported quarterly profit of €4.96 billion on Wednesday, October 14, as customers looked toward equipment orders for 2029 and 2030 and the Dutch chipmaking equipment supplier warned that its planned production capacity would fall short of demand.
The figure rounds to €5 billion. Sales reached €11.66 billion, while chief executive Christophe Fouquet said customers were raising their equipment forecasts because of the scale and expected duration of artificial intelligence investment.
ASML's earnings offer a view of spending deeper in the AI supply chain, beyond the data centres themselves. BullBuzz has also reported on Anthropic's Japan infrastructure talks, another indication of companies planning computing capacity.
ASML Profit Beats Expectations as Sales Rise
The company's third-quarter financial release showed net income rising from €2.92 billion in the second quarter. Sales increased from €9.33 billion, and gross margin widened to 57.5% from 54%.
CNBC reported that analysts surveyed by LSEG had expected net profit of €4.1 billion and sales of €11.72 billion. Profit exceeded that estimate, even though revenue came in slightly below it.
The comparison matters because a stronger profit result does not mean every earnings measure beat expectations. Higher revenue and a better margin supported the quarter, while the forward outlook addressed how much equipment ASML expects to deliver next.
Customers Look Toward 2030 Orders
Fouquet said some customers were expressing interest in placing orders for 2029 and even 2030. That extends the planning horizon beyond the next annual spending budget.
These expressions of interest are not announcements of secured orders for those years. ASML did not identify the customers in that statement or disclose a value for their prospective purchases.
For readers assessing the AI investment cycle, the difference is practical: customers can signal the capacity they want before committing to a purchase. Those intentions still need to become orders, shipments and recognised revenue.
Production Capacity Becomes the Constraint
ASML said its currently planned supply for 2027 and 2028 would not fully meet customer demand. It is investigating ways to expand 2028 capacity beyond the previously communicated 30% increase.
The company also pointed to productivity upgrades for equipment already operating at customers' factories. Its service and field-option business generated €3.29 billion in third-quarter sales, above its guidance, as demand for those upgrades remained strong.
ASML's specialised lithography machines help chipmakers manufacture the tiny patterns on semiconductors. Increasing output therefore involves the equipment supply chain as well as customers' willingness to fund new factories and computing facilities.
Funding conditions remain relevant to long investment programmes. BullBuzz's coverage of AI companies' borrowing risks examines another constraint on that spending.
Fourth-Quarter Outlook and the Next Test
Reuters reported that ASML forecast fourth-quarter sales above expectations as AI chip demand supported its outlook. The company's guidance includes:
- Q4 sales: €14.2 billion to €15.2 billion.
- Q4 gross margin: around 57%.
- Full-year sales: €44 billion to €45 billion.
- Full-year gross margin: around 56%.
The full-year revenue range narrows the previous forecast, which started at €43 billion, according to CNBC. The next tests are delivery against the fourth-quarter range, progress on capacity expansion and whether customers' longer-term interest converts into firm orders.
Strong equipment demand also sits alongside broader market risks. BullBuzz's report on Asian stocks and higher oil covers the separate pressures facing investors.
Photo: ASML headquarters in Veldhoven, Netherlands, November 14, 2025. Bloomberg / Getty Images, via CNBC. File photograph.