VELDHOVEN: ASML Holding NV on Wednesday forecast fourth-quarter sales above analyst expectations, citing sustained AI-driven demand for its chipmaking equipment, and narrowed its outlook for 2026.

The Dutch semiconductor equipment maker guided for fourth-quarter net sales of 14.2 billion to 15.2 billion euros ($15.9 billion to $17.0 billion) and a gross margin of around 57%. Analysts polled by LSEG had expected sales of 14.19 billion euros and a gross margin of 55.4%.

The company reported record third-quarter total net sales of 11.7 billion euros, near the high end of its guidance, with a gross margin of 57.5% — above expectations. Installed Base Management sales came in above guidance at 3.3 billion euros, driven by continued strong demand for productivity upgrades.

“Our customers continue to increase their short- and medium-term equipment demand forecasts with us, driven primarily by their views on the size and duration of AI-related investments,” President and CEO Christophe Fouquet said in a statement. “In light of their demand visibility, some customers are expressing an interest in placing orders with us for 2029 and even 2030.”

Fouquet said the company now expects its planned supply for 2027 and 2028 will not fully meet customer demand, and that it is investigating ways to increase capacity for 2028 beyond the 30% increase previously announced.

ASML said it expects fourth-quarter research and development costs of around 1.2 billion euros and selling, general and administrative costs of around 400 million euros.

For the full year 2026, the company forecast total net sales of 44 billion to 45 billion euros, with a gross margin of around 56%.