Strong Q3 Results Meet Valuation Pressure at ASML and Goldman

ASML and Goldman Sachs produced strong third-quarter results, yet their share prices were under pressure around the reports. That contrast does not mean earnings no longer matter. It means investors are testing whether already-high expectations can keep rising fast enough to support current valuations.

ASML's demand is strong, but capacity sets the next limit

ASML reported third-quarter 2026 net sales of €11.66 billion and net income of €4.96 billion. Diluted earnings were €12.93 a share. Those official euro figures correct the dollar-based presentation in the source report, which cited roughly $13.1 billion of revenue and $14.48 a share.

The operating signal was powerful. ASML said demand visibility and order momentum had increased, and that planned supply for both 2027 and 2028 would not fully meet customer demand. At the same time, Reuters reported that ASML was holding off on accepting orders for 2029 and 2030 while it assessed customer readiness and its own capacity.

That combination is favorable but not risk-free. A sold-out production plan can protect pricing and backlog, while also limiting how quickly revenue can respond to additional demand. Export controls, customer concentration and the timing of new capacity remain material constraints.

Goldman delivered a different kind of beat

Goldman Sachs reported $18.68 billion of third-quarter revenue, up 23% from a year earlier, and earnings of $17.01 a share. Equity trading and investment banking helped the result, while the firm continued building asset and wealth management to reduce reliance on more volatile markets activity.

The source article noted that Goldman shares were down about 11% over the preceding month even after the earnings beat. That period does not prove the results caused the decline. It does show that good reported numbers can coexist with falling valuation multiples when investors question the durability of growth or demand a wider margin of safety.

How to read the market reaction

A stock price equals expected future cash flows multiplied by the value investors assign to those cash flows. Earnings can rise while the share price falls if the multiple contracts by more than profits improve. For ASML, investors must weigh scarce capacity and exceptional demand against export restrictions and a long order horizon. For Goldman, the debate is whether trading and deal revenue can remain elevated while wealth fees become a larger recurring base.

The next evidence is company-specific. ASML needs to convert its backlog into shipments without losing customers to capacity delays. Goldman needs continued asset inflows and deal activity without a matching surge in compensation or credit costs. Strong quarters improve both cases, but they do not remove the price paid for those expectations.