ASML (ASML) Q3 2025 Investor Call earnings summary

Executive summary

• Q3 2025 net sales reached EUR 7.5 billion with net income of EUR 2.1 billion and EPS of EUR 5.49, reflecting robust demand driven by AI adoption and advanced logic and memory processes.

• Gross margin was 51.6%, and the company maintained guidance for the full year with expected net sales growth of around 15% and gross margin around 52%.

• Strong order intake continued, with Q3 net system bookings at EUR 5.4 billion, including EUR 3.6 billion from EUV systems.

• Announced new CTO appointment and strategic partnership with Mistral AI, including a EUR 1.3 billion investment and securing an 11% stake.

• Shipped first 3D integration product, XT260, with strong customer interest and productivity improvements.

Financial highlights

• Net system sales were EUR 5.6 billion, with EUV system sales at EUR 2.1 billion and non-EUV at EUR 3.4 billion; Installed Base Management sales were EUR 2 billion.

• Gross profit for Q3 was EUR 3.88 billion; operating margin 32.8%, net income margin 28.3%.

• R&D expenses were EUR 1.1 billion, slightly below guidance; FG&A/SG&A expenses were EUR 303 million.

• Cash, cash equivalents, and short-term investments stood at EUR 5.1 billion at quarter-end.

• Paid first interim dividend of EUR 1.60 per share; second interim dividend of EUR 1.60 payable in November.

Outlook and guidance

• Q4 2025 net sales expected between EUR 9.2 billion and EUR 9.8 billion; installed base management sales around EUR 2.1 billion.

• Q4 gross margin expected between 51% and 53%; R&D expenses around EUR 1.2 billion.

• Full-year 2025 net sales expected to grow ~15% year-over-year, with gross margin around 52% and annualized effective tax rate of 17%.

• 2026 net sales expected to be at least in line with 2025, with EUV business up and DUV business down due to lower China demand.

• 2030 revenue opportunity projected between EUR 44 billion and EUR 60 billion, with gross margin between 56% and 60%.