[News] ASML Posts Record €9.7B Q4 Revenue; Memory Shortage Reportedly May Boost EUV Tool Demand

ASML held its earnings call today. According to its press release, the company posted another record year in 2025, with total net sales of €32.7 billion and a gross margin of 52.8%. The fourth quarter stood out, delivering record total net sales of €9.7 billion, including revenue recognized from two High NA systems.

The company reported a gross margin of 52.2% in the fourth quarter, with net income of €2.8 billion. EUV demand remained strong, with the company saying quarterly net bookings in Q4 totaled €13.2 billion, of which €7.4 billion came from EUV systems.

Looking ahead, ASML expects 2026 to be another growth year, largely driven by a significant increase in EUV sales, the company said. It forecasts first-quarter 2026 total net sales between €8.2 billion and €8.9 billion, with a gross margin of 51% to 53%. For the full year, ASML expects net sales between €34 billion and €39 billion, with a gross margin of 51% to 53%.

Meanwhile, the company’s backlog stood at €38.8 billion at the end of 2025, the press release adds.

Alongside its record quarterly net sales, the company signaled confidence in AI-related demand. Chief Executive Christophe Fouquet said that in recent months many customers have taken a more positive view of the medium-term market outlook, reflecting stronger confidence in the durability of AI-driven demand.

China Exposure Comes Into Focus for 2026

The company also outlined expectations for its China business in 2026, a key focus for the industry. According to the earnings call transcript cited by Investing.com, ASML’s CFO Roger Dassen said China-related revenue in 2026 is expected to account for around 20% of total sales, broadly in line with China’s share of the company’s order backlog.

China accounted for 36% of net system sales in the fourth quarter of 2025 and 33% for the full year, as shown in the company’s earnings call presentation.

Memory Supply Crunch Expected to Boost ASML Tool Demand

The ongoing memory shortage may also support demand for chipmaking equipment, benefiting suppliers such as ASML. Analysts cited by CNBC say leading memory producers, including Samsung Electronics and SK hynix, are likely to expand chipmaking capacity over the next one to two years, lifting demand for ASML’s lithography tools.

Reflecting this momentum, South Korea accounted for 22% of ASML’s net system sales in Q4 2025, up from 18% in Q3.

High NA EUV Deployment Advances Toward Mass Production

In addition, the company also pointed to early traction for its High NA EUV systems. ASML said Intel has confirmed acceptance of its first NXE:5200 tool, marking the first High NA system slated for use in high-volume manufacturing. Notably, the company said that other customers are expected to receive the tool “very, very quickly,” according to the earnings call transcript.

Read more

• [News] Decoding China’s Lithography Push to Challenge ASML: From SiCarrier to Alternative EUV Paths
• ASML EUV Dominance & China’s Semiconductor Equipment Push

(Photo credit: ASML)