ASML Holding NV (ASML) reported record financial results for 2025, supported by a significant rebound in fourth-quarter bookings as semiconductor manufacturers increased investments in artificial intelligence chipmaking. The Dutch lithography equipment maker posted total net sales of EUR32.7 billion (US$39.2 billion) for the year, with net income reaching EUR9.6 billion.
Fourth-quarter sales rose to EUR9.7 billion with a gross margin of 52.2% and net income of EUR2.8 billion. Net bookings for the period surged to EUR13.2 billion, more than double the level recorded in the previous quarter.
Strong demand for EUV systems fueled by AI
The fourth-quarter bookings, a critical indicator for the semiconductor equipment sector, exceeded market expectations and signaled confidence in the durability of AI-related demand. Of the EUR13.2 billion in total orders, EUR7.4 billion was attributed to extreme ultraviolet (EUV) lithography systems.
ASML CEO Christophe Fouquet stated that customers have adopted a more positive medium-term outlook, primarily due to expectations for sustained AI requirements. This shift has resulted in expanded capacity plans and record order intake, Fouquet said.
Reuters reported that the bookings figure compared with EUR5.4 billion in the prior quarter and outperformed analyst estimates of EUR6.32 billion, according to Visible Alpha. The increased orders followed intensified investments in AI logic and memory chips by customers supplying cloud providers such as Microsoft, Amazon, and Alphabet's Google.
2026 outlook shows continued momentum
ASML expects this momentum to carry into 2026, forecasting first-quarter sales between EUR8.2 billion and EUR8.9 billion with a gross margin of 51% to 53%. For the full year 2026, the company now projects total net sales in the range of EUR34 billion to EUR39 billion, with a gross margin in the same range.
"We expect 2026 to be another growth year for ASML's business," Fouquet said, noting that growth will be driven by higher EUV system sales and the expansion of the company's installed base business. ASML intends to continue investing in personnel and manufacturing capacity to support these targets.
The updated guidance represents a change from earlier expectations of flat to lower year-over-year sales. Reuters noted that the new forecast compares with analyst expectations of approximately EUR35 billion for 2026, according to LSEG data.
Shareholder returns increase
The company plans to propose a total dividend of EUR7.50 per ordinary share for 2025, a 17% increase over the previous year. An interim dividend of EUR1.60 per share is scheduled for payment on February 18, 2026, while a final dividend proposal of EUR2.70 per share will be submitted to shareholders.
ASML also announced a new share buyback program of up to EUR12 billion to be completed by December 31, 2028. The company expects to use up to 2 million repurchased shares for employee share plans and will cancel the remainder. A previous EUR7.6 billion buyback program concluded in December 2025.
Restructuring to support growth
Alongside its financial results, ASML announced plans to streamline its technology and IT organizations to sharpen its focus on engineering and innovation. The company said the restructuring is intended to position the firm for anticipated growth in the semiconductor industry in the coming years. Employees and their representatives are currently being informed of the proposed changes.
Strong backlog supports future revenue
ASML concluded 2025 with an order backlog of EUR38.8 billion, providing strong visibility for future demand. Bloomberg reported that the company could reach the upper end of its EUR34 billion to EUR39 billion sales target for 2026, citing the strength of fourth-quarter orders and the current backlog.
Bloomberg said the outlook is further supported by the capital spending plans of major customers, noting that significant investments from TSMC, alongside continued spending by memory manufacturers including SK Hynix, Samsung, and Micron, are expected to contribute to ASML's sales growth as chipmakers expand capacity for AI demand.
Source: ASML, compiled by DIGITIMES, January 2026
Article edited by Jerry Chen
