ASML Q4 Earnings Call Highlights

ASML (NASDAQ:ASML) reported a “record quarter” and a “very, very strong year” for 2025, as executives said customer demand—particularly tied to artificial intelligence (AI)—has begun translating into more concrete capacity expansion plans. During the company’s Q4 and full-year 2025 results press conference, CEO Christophe Fouquet and CFO Roger Dassen highlighted strong order intake, rising EUV demand, and continued investment in advanced technology, while also detailing a planned restructuring aimed at simplifying the company’s technology organization.

Record Q4 and full-year 2025 results

Dassen said ASML finished 2025 with €32.7 billion in net revenue and a 52.8% gross margin. Net income was €9.6 billion, with earnings per share “close to €25” per ordinary share. He described Q4 2025 as a record quarter in sales, order intake, and cash flow generation.

By segment, Dassen said EUV was the main driver of growth in 2025, with EUV revenue up 39% versus 2024. He attributed that increase to both higher tool volumes and a higher average selling price, noting that most low-NA EUV tools sold in 2025 were the 3800 model, which improved productivity from 160 wafers per hour to 220 wafers per hour.

The company also recognized revenue for high-NA EUV systems, including what Dassen described as “a big moment”: revenue recognition of the first 5200B, which he called the high-volume manufacturing tool for high-NA. Dassen said the tool was shipped, installed, and accepted by the customer, and that customers are “really looking at putting that tool into high-volume manufacturing for its leading nodes.”

AI-driven demand and capacity build plans

Fouquet repeatedly pointed to AI as the core driver of industry momentum, saying the last three months helped clarify the outlook for 2026 and “most probably a bit beyond that.” He said ASML had previously heard about AI infrastructure investments without seeing those plans translate into customer capacity additions, but that dynamic has changed as customers gained confidence in the sustainability of AI demand.

Executives said AI is driving demand across ASML’s portfolio, from leading-edge EUV for advanced logic and DRAM to deep ultraviolet (DUV) for “more mature technology” needed for sensors and data generation.

On the call’s Q&A, Fouquet said he believed memory is “most probably” the bottleneck for AI today, citing strong demand for high-bandwidth memory alongside strong demand for DDR memory. He said DRAM prices had risen “significantly in the last few weeks,” pushing memory customers to move “very aggressively” on capacity expansion because “capacity is also market share.”

Technology roadmap: EUV, high-NA, DUV, and process control

Fouquet said 2026 is expected to be “a big year for EUV,” with higher shipments even as ASML has increased EUV tool productivity by more than 40%. He also said the number of EUV layers at key customers has been increasing, driving higher “litho intensity.”

On high-NA EUV, Fouquet said customer tool qualification is progressing and “the results are good,” but he characterized the near term as preparation for later insertion. He said ASML expects the first products manufactured using some high-NA systems to appear around 2027–2028.

Fouquet also discussed a “high productivity platform” program designed to provide flexibility over time between low-NA and high-NA configurations, with a target of more than 400 wafers per hour productivity. He said this approach allows ASML to be prepared without committing to a rigid timing decision about when high-NA must be introduced.

In DUV, he emphasized continued roadmap progress, including the launch of the 2150 immersion system with sub-nanometer accuracy and more than 300 wafers per hour, and the NXT 870B KrF system reaching more than 400 wafers per hour, which he said is generating significant customer interest.

Fouquet also highlighted 3D integration as a newer area of focus, noting ASML shipped its first TWINSCAN XT:260 system in the prior quarter and is seeing “a lot of interest” from customers.

Beyond lithography, ASML pointed to strong growth in metrology and inspection. Fouquet said the metrology and inspection business rose by “almost 30%” in 2025, citing increased need for yield improvement and process control at leading nodes. He also pointed to progress in multibeam e-beam inspection as a path toward high-volume manufacturing adoption in the coming years.

Outlook, China mix, and shareholder returns

For Q1 2026, Dassen guided to net revenue of €8.2 billion to €8.9 billion and gross margin of 51% to 53%. He also guided installed base management sales of €2.4 billion, up from €2.1 billion in the prior quarter, which he attributed to strong customer appetite for tool upgrades as the fastest way to increase capacity while fabs are still being built.

For full-year 2026, ASML forecast net revenue of €34 billion to €39 billion and gross margin of 51% to 53%, with an annualized effective tax rate of 17%. Dassen said the “steam engine” behind growth remains EUV, while non-EUV business is expected to be “flattish” at €25 billion to €26 billion, with metrology and inspection expected to remain strong.

Regionally, Dassen said China remained large in 2025 but declined versus 2024 and is expected to decline further. He said ASML expects China to represent around 20% of total sales in 2026, down from 29% in 2025. In response to a question, Dassen said the decline is driven mainly by normalization after a COVID-era backlog, noting the company had previously “underserved the Chinese market during the COVID days,” which led to an elevated backlog that ASML has been executing over the past couple of years.

ASML also detailed capital returns. Dassen said the company proposes a total 2025 dividend of €7.50 per share, including an interim dividend of €1.60 in Q1 and, subject to AGM approval, a final dividend of €2.70. He said ASML bought back €7.6 billion under a €12 billion program and announced a new €12 billion share repurchase program over three years.

Planned restructuring targets leadership layers in technology organization

Fouquet also addressed a planned reorganization that will result in 1,700 roles leaving the company, a decision he described as difficult but not driven by financial distress. He said the goal is to reduce organizational complexity and improve agility and responsiveness, following feedback from customers, suppliers, and engineers.

Fouquet said ASML’s technology organization currently has about 4,500 leaders and that the company believes it needs about 1,500 leaders after simplification—a reduction of roughly 3,000 leadership roles. Out of those, ASML plans to create 1,400 engineering positions, resulting in about 1,600 people in the technology team who will not have a job at ASML. The remaining 100 roles are expected to come from IT, where the company sees similar issues.

Asked about restructuring costs, Dassen said discussions with unions and the works council were ongoing and he could not provide specifics, but said the costs “would not be considered material” in the context of ASML’s financials. Management said the timing will depend on negotiations, but they want to move “as soon as possible” to reduce uncertainty for impacted employees.

About ASML (NASDAQ:ASML)

ASML Holding N.V. (NASDAQ: ASML) is a Dutch company that develops, manufactures and services advanced photolithography systems used to produce semiconductor chips. Headquartered in Veldhoven, Netherlands, ASML supplies capital equipment and associated software and services that enable semiconductor manufacturers to pattern the intricate circuits on silicon wafers. The company is widely recognized for its leadership in extreme ultraviolet (EUV) lithography as well as its deep ultraviolet (DUV) platforms used across multiple process nodes.

ASML’s product portfolio includes EUV and DUV lithography machines, light sources, imaging optics and control software, together with spare parts, upgrades and field services.