Hello, and welcome to ASML's Q2 2026 results video. Welcome, Christophe.

Welcome, Roger. Roger, can I start with you and ask you to give us a summary of our Q2 results, please?

Sure. Total net sales for the quarter came in at 9.3 billion, and we had a gross margin of 54%.

Both of them, both the top line and also the gross margin, above guidance. Main reason why it was above guidance is the installed base business.

The installed base business came in at 2.8 billion. That is 300 million more than we expected, as a result of the fact that customers are really looking for productivity enhancements, and therefore the upgrade business was quite high.

Net income came in at 2.9 billion. In the 2.9 billion is also an estimate of the cost associated with the Tech and IT Transformation, so that's included in that number.

All in all, I would say a very strong quarter, both from a market dynamic perspective and from an execution perspective. Then

looking further ahead, can you also provide us with a guide for Q3 and then the full year '26?

The way we look at Q3, we guide total net sales between 11 and 12 billion for Q3, with a gross margin between 55 and 57%. We're looking at an installed base business of approximately 2.9 billion for Q3.

If we look at the total year, we're looking at total net sales guided between 43 and 45 billion, and a gross margin between 54 and 56% for the full year. Then

maybe, Christophe, if I can turn to you and ask you to give us maybe a sense of the market dynamics that have led to the upgrade in the guidance that Roger just talked about?

I think it's really a combination of a continuous, very strong demand from our customer, but also, and that's very important, our ability to respond to that demand, thanks to the strength of our supply chain, manufacturing, and the install team in the field. If we look at the market demand, the end-market demand, this has motivated our customer to increase their capex, but also accelerate all their plans, and this really create a need for more system, basically starting this year.

We are doing the same on our side, extending output, extending basically our team so that we can support them moving forward. That dynamic, we see both with Logic and DRAM, and what we also see for both Logic and DRAM is that our customer are getting long-term agreement with their own customer, which really invite them to commit for the long term, because they have what I would call a quite unprecedented visibility on what will happen to the market.

If we start maybe and take a slightly deeper look then on Logic first maybe and what you're seeing there specifically?

Quite a bit happening with Logic. First, if we look at the existing advanced node, 5, 4, 3 nanometer, we see that our customer are trying to add a lot of capacity there now, and this is because there is a huge demand on those technology coming from AI.

At the same time, the 2-nanometer ramp is done as aggressively as possible. We see customer adding capacity, accelerating their plan, and they even start basically to look at the 1.4-nanometer ramp.

All of that together means that our revenue for advanced foundry Logic this year should increase by about 25%.

If we also looked at memory in that regard, what are you seeing there?

I think if we look at the price of memory today, either for DDR or for HBM, there is a clear need for more supply, and this is translating into, again, acceleration of capacity plan from our customer. This is happening with all customer, and on top of that, as we discussed previously, the latest node are calling for more litho, for higher litho intensity, both on EUV, but also advanced immersion.

All of that together means that our revenue on memory this year will increase by 75%.

Pretty good. Having said that then, what does that translate to in terms of our own business, EUV, non-EUV, and what are you seeing there, for example?

Let me start with EUV. Quantifying a bit some of the statement I made before, we will be able this year to ship about 65 low-NA EUV machines.

This is the results basically of a lot of work done on our output, and this means that our EUV business will grow by about 45%. When it comes to DUV, immersion first, we had to reaccelerate our output, and we are now happy that we will be able to ship about 130 system, which is about the level of last year, after a strong reacceleration of all our plan there.

Finally,

when we look at DUV dry, a lot of traction there, also capturing some customer with our dry products, and the number of shipments is also going to increase quite a bit in 2026.

Touching maybe a little bit then on our metrology and inspection business?

There also very strong growth this year. Two reasons for that.

The first one is our customer are using more and more process control. This is because, of course, of more advanced, more complicated nodes.

This is, I would say, one of the trend. The second trend, to be honest, is a very strong adoption, increased adoption of our product, being the optical metrology or e-beam inspection, which basically all together drive very strong growth on inspection and metrology at ASML.

If you look at DUV, metrology, inspection together, we are looking at about 25% growth also in revenue in 2026. Then

Roger, maybe turning quickly, could you also give us an update on what we're seeing in terms of regionally maybe with China, how are we seeing things play there?

Yes, we said China, we still look at China as approximately 20% of our total net sales, so that percentage hasn't changed. Obviously, it's of a higher base, right,

because

the total net sales for the company as we see today is higher than we anticipated at the beginning of the year. In that sense, you could say that the Chinese market is moving in sync with the overall behavior that we see globally.

If you really want to pinpoint, where is that extra demand in China, it is primarily in the Logic business and then primarily catering to domestic-led demand.

The other piece maybe is on installed base management. I think we've had some very good momentum over recent quarters.

Can you also, and you've given a good guide I think for next Q, can you talk a little bit about the dynamics we're seeing there?

Yes, I think I already mentioned a little bit, right? The installed base business, two main buckets.

Obviously, the upgrade business that we talked about, and, as I said, customers in the current environment, whatever they can do to increase productivity, they will take it, particularly if it's instant upgrade of productivity. We're increasingly in a position to give that to customers because a lot of the upgrade business is software-led, it doesn't take a lot of machine time, customers have an instant improvement of productivity.

We already have quite a few of those products, but we're really driving that with quite some force to make sure that we have as many upgrade products available to customers as possible. Then obviously particularly on the EUV side, with the installed base increasing the way it does, that also obviously means that the total service business is going up.

If you take those two buckets combined, we're looking at over 30% growth for the installed base business this year.

Maybe, Roger, then, following on from that, can you also give us some color on the gross margin and what are some of the drivers there?

Gross margin influenced of course by what I just mentioned on the installed base business, right? The increase in upgrade business obviously also leads to an increase in the gross margin, so that's an important driver for the gross margin this year.

The other one is, if you look at the system sales, it's a combination both of volume, with higher volume, we get better fixed cost coverage, and that of course is helpful for the gross margin, but also there is a positive mix effect this year with strong performance both on the EUV side and also on the immersion side.

Christophe, maybe then looking a little bit longer term and beyond '26, what are the conversations and dynamics you're having in terms of discussions with customers, for example?

I think, based on everything we have said so far, you can imagine that we're having very constructive discussion with our customer on the long term. Their own visibility to their business allow them to share with us also a longer than, I would say, usual visibility on their business.

We're talking of course about next year, but also beyond that. Now this has also translated practically into very strong order booking through the first half of 2026.

Now if we look into more details, starting with 2020 see 2027, there we are pretty much already close to receive all the orders we need for 2027, and this is with us adding about 30% capacity for EUV in 2027 versus 2026. When we look at 2028, we have received already a large number of orders from our customer for EUV, and this has also invited us very strongly to investigate another 30% increase in our EUV capacity for 2028.

Now of course, when EUV grows, DUV grows as well. Immersion is going to be important, and there also for 2027 and for 2028, we are going to look at a 30% increase of our capacity for both years.

Then

maybe if we can switch gears a little bit, and if you can provide us with a little bit of an update on the technology front and maybe High NA, how are things going there?

Maybe on High NA, I'd like to start with the press release we had this morning about Intel. As you may have read it, Intel is basically now using High NA in production on their most advanced products.

It means that some of the products you buy today from Intel have been created with an High NA machine. This is of course a very important milestone.

This is the proof of the maturity of the tool. We talked a lot about that in the last quarter.

We are seeing that happening with all customer, and therefore expect to enter that discussion with all our customer on how exactly and when exactly the tool will be inserted in high-volume manufacturing.

Can I ask you to share a little bit on the timing of our next Capital Markets Day?

I think we will all agree that a lot has happened in our market in the last few quarters, I think we believe it's time to revisit our assumption, revisit a bit the analysis we have of the market. We'd like to welcome all our investor on June 10th next year, 2027, for our next Capital Markets Day, which will be for us the opportunity to look again at the context of the market and define basically what it means a bit for the long term of ASML business.

With that, thank you, Roger. Thank you, Christophe.

You're welcome.

Thank you.