Linde's profit beats estimates as AI growth fuels demand for chip-making gases (updated)
UPDATE 1-Linde's profit beats estimates as AI growth fuels demand for chip-making gases Writes through, adding details on electronics market in paragraphs 1 and 4, context in paragraphs 2 and 5.
By Bartosz Dabrowski
Oct 29 (Reuters) - Linde LIN.O, the world's largest industrial gases company, reported third-quarter earnings above market expectations on Thursday, with strongest sales growth coming from its electronics end market powered by AI demand.
As semiconductor manufacturers ramp up capacity to meet demand for AI and high-performance computing chips, investors are increasingly focused on whether Linde can translate its growing exposure to the sector into sustained earnings growth.
The US-German company, which supplies gases such as oxygen, nitrogen and hydrogen to factories and hospitals, reported a 9% jump in its adjusted earnings per share to $4.59 in the quarter. That beat analysts' mean estimate of $4.52 per share, LSEG data showed.
Sales to the electronics end market grew 15% from a year ago, Linde's quarterly presentation showed. Overall third-quarter sales grew 9% to $9.4 billion.
In July, the company said it had secured a long-term agreement to supply ultra-high-purity industrial gases to one of the world's largest semiconductor manufacturers and would invest about $1 billion in Arizona.
Linde raised its 2026 adjusted EPS range to between $17.82 and $17.92, from the previously guided $17.70 to $17.90, reflecting an assumed 2% currency benefit.
For the fourth quarter, it expects adjusted EPS of $4.40 to $4.50, a rise of 5% to 7% from a year ago.
(Reporting by Bartosz Dabrowski in Gdansk, editing by Milla Nissi-Prussak)
((bartosz.dabrowski@thomsonreuters.com; +48 58 7696560;))