ASML Reports Record-Breaking Order Intake Fueled by AI Demand

ASML USN070592100

The Dutch semiconductor equipment giant ASML has released quarterly figures that have captured the market's attention. The company announced a staggering €13.2 billion in new orders for the fourth quarter of 2025, a figure that nearly doubled analyst forecasts. This surge is primarily attributed to the relentless demand for its lithography systems required to manufacture advanced artificial intelligence (AI) chips.

Looking ahead to 2026, ASML provided revenue guidance ranging between €34 billion and €39 billion. The company anticipates gross margins will remain robust, projected to be between 51% and 53%. Management expects this growth to be driven by a significant increase in sales of its cutting-edge Extreme Ultraviolet (EUV) lithography machines.

In a parallel move, the company's board has authorized a new share buyback program worth up to €12 billion, scheduled to run through the end of 2028. Concurrently, ASML announced a restructuring plan that will reduce its global workforce by approximately 1,700 positions, or about 4% of its staff. The cuts will focus primarily on managerial and support roles. The stated objective is to streamline the organization, enhance agility, and redirect engineering resources toward core innovation initiatives.

Unprecedented Order Backlog

The flood of orders in the final quarter of 2025 has dramatically inflated ASML's order book. The backlog of systems waiting to be built and delivered reached €38.8 billion by the end of the year. Chief Executive Officer Christophe Fouquet noted that customers now share a "significantly more positive assessment" of the medium-term market outlook, a sentiment fueled by what the company sees as sustainable demand for AI-related technology.

For the full 2025 fiscal year, ASML posted revenue of €32.7 billion. Net profit for the period came in at €9.6 billion. Isolating the impressive fourth quarter, the company generated €9.7 billion in sales and achieved a gross margin of 52.2%.

Technology Roadmap Advances

On the technological front, ASML continues to expand its next-generation High-NA EUV platform. These systems are critical for the mass production of semiconductors with process nodes of 2 nanometers and below. The company has already delivered eight of these advanced tools to customers. ASML confirmed that its High-NA EUV systems are on track to be ready for high-volume manufacturing by the end of 2026.