ASML (ASML) Q4 2025 Pre Recorded earnings summary

Executive summary

• Achieved record net sales of €32.7 billion and net income of €9.6 billion for 2025, with Q4 net sales at €9.7 billion and net income of €2.8 billion.

• Q4 2025 delivered record order intake and free cash flow, with net bookings of €13.2 billion and a year-end backlog of €38.8 billion.

• The semiconductor industry is projected to surpass $1 trillion by 2030, driven by AI adoption and innovation in lithography.

• Strategic investments included €1.3 billion in Mistral AI to accelerate AI-driven lithography innovation.

• Customers report a more positive medium-term outlook, driven by robust AI-related demand and increased capacity plans.

Financial highlights

• 2025 gross margin reached 52.8%, with Q4 2025 gross margin at 52.2%.

• Installed Base Management sales grew to €8.2 billion in 2025, with Q4 contribution of €2.1 billion.

• Free cash flow for 2025 was €11.0 billion, up from €9.1 billion in 2024.

• Cash and cash equivalents at year-end 2025 totaled €13.3 billion.

• Basic EPS for 2025 was €24.73, up from €19.25 in 2024.

Outlook and guidance

• 2026 net sales expected between €34 billion and €39 billion, with gross margin guidance of 51%–53%.

• Q1 2026 net sales projected between €8.2 billion and €8.9 billion, gross margin 51%–53%.

• Installed base revenue for Q1 2026 expected at €2.4 billion.

• Long-term (2030) revenue expected at €44–60 billion, gross margin 56–60%.

• Annualized effective tax rate for 2026 is expected to be around 17%.