ASML Revealed Strong Results and Expectations with Record Orders

ASML Reports Financial Results Above Expectations

Dutch chip manufacturer ASML announced its fourth-quarter financial results, surpassing market expectations. The company achieved revenues of €9.7 billion ($11.6 billion) and a net profit of €2.84 billion. Analysts had expected ASML to report revenues of €9.6 billion and a net profit of €3.01 billion.

Record Increase in Orders

ASML revealed that it received a total of €13.2 billion ($15.8 billion) in new orders in the fourth quarter of 2025. This result significantly exceeded analysts' forecast of €6.32 billion. The company's CFO, Roger Dassen, stated that the fourth quarter was a record quarter in terms of orders.

Plans for Share Buyback and Layoffs

ASML announced a share buyback plan worth €12 billion to be executed by December 31, 2028. Additionally, it is noteworthy that approximately 1,700 employees, mostly in the Netherlands and some in the United States, will be laid off. The company set its net sales expectations for 2026 between €34 billion and €39 billion, announcing that these estimates are above analysts' expectations.

Impact of Artificial Intelligence and Memory Shortages

ASML has seen significant demand due to the increase in artificial intelligence infrastructure, managing to boost its shares by around 30% this year. ASML’s major customer, Taiwan Semiconductor Manufacturing (**TSM**), announced record profit increases in the fourth quarter. Additionally, the ongoing shortage in memory semiconductors continues to drive price increases.

Experts predict that the difficulties surrounding memory semiconductors will persist until 2027. Furthermore, the anticipated increase in chip production capacities of major firms like Samsung and SK Hynix may present a new opportunity for ASML.

Developments in the Chinese Market

ASML expressed uncertainties regarding sales from China, where it has been unable to ship its most advanced machines due to export restrictions. The company expects that by 2026, its revenues from China will constitute 20% of its total sales; it is worth noting that this figure was 33% last year.