ASML Holding NV reported record fourth‑quarter and full‑year 2025 results, with net sales of €32.7 billion and a net income of €9.6 billion—up 16% and 34% year‑over‑year, respectively. Q4 net sales rose to €9.7 billion, while bookings hit a record €13.2 billion, driven largely by €7.4 billion in new EUV orders and the shipment of 14 EUV systems. Gross margin for the quarter climbed to 52.2%, an increase from 51.7% in Q4 2024, reflecting a higher mix of high‑margin EUV equipment and disciplined cost management.
The surge in bookings and margin expansion are rooted in the accelerating demand for AI‑centric chips. EUV lithography, the only technology capable of producing the sub‑7 nm nodes that power modern AI accelerators, saw a 121% jump in orders, while logic‑chip sales—accounting for 70% of end‑use revenue—continued to outpace memory demand. The company’s pricing power and efficient supply chain allowed it to maintain a 0.5‑percentage‑point margin lift despite modest increases in raw‑material costs and a 2% rise in labor expenses.
Management raised its 2026 outlook, projecting full‑year sales of €34–39 billion and a gross margin of 51–53%. The upward revision signals confidence that AI‑driven demand will sustain growth and that the company’s high‑margin EUV portfolio will continue to expand. CEO Christophe Fouquet noted that “customers have become more optimistic about the medium‑term market, primarily due to the sustainability of AI‑related demand,” underscoring the strategic importance of the AI chip market to ASML’s future.
Analysts welcomed the results, with Morgan Stanley naming ASML its top pick among European semiconductor stocks. The record bookings and upgraded guidance were cited as key drivers of the positive reception, highlighting the company’s dominant position in the AI infrastructure supply chain and its ability to convert demand into revenue and margin growth.
Headwinds remain, including geopolitical tensions around China and supply‑chain constraints that could affect component availability. ASML also announced a €12 billion share‑buyback program through 2028 and a 17% dividend increase to €7.50 per share for 2025, signaling a commitment to returning value to shareholders while investing in future growth.
The company’s job‑cut announcement—approximately 1,700 positions, mainly in the Netherlands and the U.S.—reflects a shift toward greater operational agility, a strategic move to align resources with high‑growth EUV and DUV segments.
The combination of record bookings, margin expansion, and a bullish outlook positions ASML to capitalize on the AI boom, while its strategic investments and shareholder returns reinforce confidence in its long‑term trajectory.
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