ASML Holding NV - New York Shares

Q2 results beat guidance (strength in Installed Base Management) - Total net sales: €9.3B, above the top of guidance; driven by higher-than-expected Installed Base Management (IBM) - Net system sales: €6.6B; EUV €3.8B (incl. 1 High-NA system) + non‑EUV €2.8B - Gross margin: 54% (above guidance), helped by very high-margin components within IBM - Operating expense pressure: R&D €1.3B higher than guided due to recognition of estimated costs for technology & IT transformation (Q2) - Profitability: Net income €2.9B (31.3% of sales), EPS €7.59 - Cash/FCF: cash & short-term investments €7.6B; free cash flow €1.3B

Guidance raised: Q3 + full-year 2026 outlook improved - Q3 net sales: €11B–€12B - Q3 IBM: ~€2.9B - Q3 gross margin: 55%–57% - Q3 opex: R&D ~€1.2B, SG&A ~€0.4B - Full-year 2026 (raised): net sales €43B–€45B and gross margin 54%–56% (higher than previously guided) - Why raised: demand momentum + ASML’s ability to increase output via supply chain/manufacturing/field installed-base teams

Major demand drivers & growth expectations (logic + DRAM) - Customer capex rising as customers add capacity on leading-edge nodes; demand visibility extends years - Logic (advanced foundry): ASML expects advanced logic foundry-related net system sales to grow >25% this year - Continued ramp of 2nm, plus investment at 5nm/4nm; customers planning 1.4nm - Implication: higher lithography intensity and more advanced lithography demand - Memory (DRAM): ASML expects memory-related net system sales to grow >75% this year - Driven by HBM + DDR pricing/supply challenges, fab expansion, and rising lithography intensity (EUV + DUV immersion; growth from single-expose EUV Low‑NA replacing multi-patterning)