JP Morgan analysts say Dutch semiconductor-equipment maker ASML reported a strong Q3 gross margin of 57.5%, above consensus near 56% and above the company guide of 55–57%. Analysts attribute the outperformance mainly to higher-margin revenue from maintenance, retrofit and upgrade services on already-sold lithography tools as customers continue to service and boost existing equipment. ASML sees Q4 gross margin around 57%, roughly 60bps above consensus at 56.4%. JP Morgan notes maintenance and upg

JP Morgan analysts say Dutch semiconductor-equipment maker ASML reported a strong Q3 gross margin of 57.5%, above consensus near 56% and above the company guide of 55–57%. Analysts attribute the outperformance mainly to higher-margin revenue from maintenance, retrofit and upgrade services on already-sold lithography tools as customers continue to service and boost existing equipment. ASML sees Q4 gross margin around 57%, roughly 60bps above consensus at 56.4%. JP Morgan notes maintenance and upgrade demand should remain an important margin support as chipmakers optimize existing fabs and raise utilization of advanced-process tools.