ASML (ASML) Q4 2025 earnings summary

Executive summary

• Achieved record total net sales of €32.7 billion and net income of €9.6 billion for 2025, with a gross margin of 52.8% and basic EPS of €24.73; Q4 net sales were €9.7 billion and net income €2.8 billion.

• AI-driven demand is accelerating capacity expansion among customers, especially in memory and logic, leading to significant investments and mega fab construction.

• Announced a major organizational restructuring, reducing 1,700 leadership roles to streamline innovation and engineering, while adding 1,400 engineering positions to boost agility and focus.

• Returned €8.5 billion to shareholders via dividends and share buybacks; announced 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%.

• Q4 2025 net sales were €9.7 billion, with a gross margin of 52.2% and net income margin of 29.2%.

• EUV system sales grew 39% year-over-year to €11.6 billion; DUV system sales declined 6% to €12.0 billion.

• 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.

• EUV business projected to grow significantly, while non-EUV business expected to remain flat.

• China sales expected to decline to about 20% of total sales in 2026.

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