ASML (ASML) is expected to deliver better-than-expected Q3 results and raise its Q4 outlook, RBC Capital Markets said in a note Tuesday.

The company is scheduled to report the results on Oct. 14.

The analysts said they also expect management's 2027-2028 comments to point to higher low-numerical aperture extreme ultraviolet, or EUV, lithography demand, with around 90 tools in 2027 and 110-plus in 2028, compared with previous expectations of roughly 85 and 110.

"GenAI demand, intensifying foundry competition, and higher litho intensity in DRAM are driving strong EUV momentum, with Terafab likely offering further visibility," the analysts added.

The analysts expect Q3 revenue of 11.5 billion euros ($12.9 billion) and earnings per share of 10.60 euros. For Q4, they expect guidance to be 3% to 5% above consensus of 13.9 billion euros in revenue and 13.13 euros EPS, implying 2026 revenue above the previous outlook of 43 billion euros to 45 billion euros.

RBC kept its outperform rating and $2,100 price target on ASML.

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