ASML notches record orders as AI boom drives sales
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The news: Dutch semiconductor equipment maker, ASML Holdings, posted record quarterly orders in the final three months of 2025 and expects that sales will continue to grow in 2026.
The numbers: ASML reported Q4 net orders of EUR13.2 billion ($22.62 billion) of which EUR7.4 billion was from its extreme ultraviolet (EUV) lithography machines, some of its most advanced machines. ASML’s quarterly bookings were up from up from EUR7.09 billion a year earlier and significantly above analysts’ forecast of EUR6.95 billion, according to Visible Alpha.
The company expects Q1 2026 total net sales to land between EUR8.2 billion and EUR8.9 billion and 2026 total net sales to be between EUR34 billion and EUR39 billion, with a gross margin between 51% and 53%.
ASML announced a EUR12 billion share buyback plan to be executed by 31 December 2028.
Shares in ASML were up 4.8% at 4:35am ET (8:35pm AEDT) during premarket trading on Wednesday.
The context: The high Q4 bookings numbers reflect the ongoing demand from ASML clients including Taiwan Semiconductor Manufacturing Co to spend billions on chip-making tools used to power AI.
"In the last months, many of our customers have shared a notably more positive assessment of the medium-term market situation, primarily based on more robust expectations of the sustainability of AI-related demand. This is reflected in a marked step-up in their medium-term capacity plans and in our record order intake”, CEO Christophe Fouquet said in a statement on the results.
"Therefore, we expect 2026 to be another growth year for ASML's business, largely driven by a significant increase in EUV sales and growth in our installed base business sales”, Fouquet continued.
Despite the strong results, ASML also announced that it would reduce its workforce by around 4%, or 1,700 people, largely across its technology and IT organisations. The cuts will mostly impact workers at leadership levels in the Netherlands and US operations.
The decision comes after ASML received feedback that it has “a complex organisation” that can lead to spending too much time coordinating processes, CFO Roger Dassen said in a call with reporters, Bloomberg reported.
