ASML (ASML) Q4 2025 earnings summary

Executive summary

• Achieved record 2025 results with net sales of €32.7 billion, net income of €9.6 billion, and gross margin of 52.8%, driven by strong AI-related demand and advanced semiconductor technologies, especially EUV lithography.

• Q4 2025 net sales reached €9.7 billion, with net income of €2.8 billion and net bookings of €13.2 billion, including €7.4 billion from EUV.

• Announced a major organizational restructuring, reducing 1,700 leadership roles and creating 1,400 new engineering positions to streamline innovation and engineering.

• Returned €8.5 billion to shareholders via dividends and share buybacks, with a new €12 billion buyback program through 2028.

• Invested €1.3 billion in a strategic AI partnership with Mistral AI to accelerate innovation.

Financial highlights

• 2025 net revenue reached €32.7 billion, with a gross margin of 52.8% and net income margin of 29.4%.

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

• EUV system sales grew 39% year-over-year to €11.6 billion, becoming the main growth driver.

• Installed Base Management sales increased 26% year-over-year to €8.2 billion.

• Metrology & Inspection systems sales rose 28% year-over-year to €825 million.

Outlook and guidance

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

• Q1 2026 net sales forecasted at €8.2–8.9 billion, with Installed Base Management sales around €2.4 billion.

• Long-term revenue target for 2030 remains €44–60 billion, with gross margin of 56–60%.

• Annualized effective tax rate for 2026 projected at around 17%.

• China sales are projected to decline to about 20% of total sales.