TLDR
- ASML reported Q4 orders of €13.2 billion, crushing analyst estimates of €6.85 billion
- Company raised 2026 revenue outlook to €34-39 billion, pointing to at least 20% growth
- EUV lithography machine orders hit €7.4 billion, representing over half of Q4 bookings
- Shares jumped 7.5% to record highs as AI infrastructure spending boosts chip equipment demand
- ASML announced €12 billion buyback and 1,700 job cuts to streamline operations
ASML Holding delivered a stunning fourth-quarter performance that sent shares to record highs. The semiconductor equipment maker posted orders of €13.2 billion, nearly double the €6.85 billion analysts expected.
The results show chipmakers are accelerating capacity expansion plans. AI infrastructure investments are driving unprecedented demand for advanced manufacturing equipment.
Shares climbed 7.5% to €1,309 in Amsterdam, pushing year-to-date gains to 41%. Japanese suppliers including Lasertec and Tokyo Electron also rallied on the news.
ASML produces the lithography machines essential for manufacturing cutting-edge semiconductors. Taiwan Semiconductor and Intel are among its key customers. These tools are critical for producing Nvidia AI chips that power data centers.
Memory Shortage Boosts Equipment Sales
Extreme ultraviolet lithography machines drove Q4 performance. These EUV systems generated €7.4 billion in orders, accounting for more than half the quarterly total.
A global memory chip shortage is creating additional tailwinds. Component prices have surged to record levels with the crunch expected to last through 2027.
Samsung and SK Hynix are preparing to expand production capacity. Barclays estimates SK Hynix alone will purchase 12 EUV machines during 2026.
CFO Roger Dassen said customers have grown “more positive” about medium-term market conditions. Their optimism is based on stronger conviction around AI demand sustainability.
Taiwan Semiconductor plans to spend over $52 billion on capital expenditures in 2026. The investment will focus heavily on advanced manufacturing techniques requiring ASML equipment.
Meta and Microsoft are investing hundreds of billions in data center construction. This spending wave is forcing semiconductor manufacturers to rapidly add capacity.
Strong Revenue Outlook for 2026
ASML raised its full-year revenue guidance to between €34 billion and €39 billion. The forecast midpoint exceeds analyst expectations of €35.1 billion.
The outlook suggests revenue growth of at least 20% compared to 2024 levels. Total 2025 net sales reached €32.7 billion.
First-quarter revenue is projected between €8.2 billion and €8.9 billion. ASML previously said 2026 sales wouldn’t fall below 2025 performance.
CEO Christophe Fouquet said customers shared “more robust expectations” for AI-related demand. This confidence is reflected in their medium-term capacity planning.
Nvidia CEO Jensen Huang recently described the data center buildout as “the largest infrastructure project in human history.” He estimated trillions in additional investment will be needed over coming years.
Company Announces Restructuring Plans
ASML plans to eliminate 1,700 positions representing 4% of total headcount. Most cuts will occur in the Netherlands with some impacting US operations.
Fouquet said the reductions will help ASML become more “agile” despite strong business performance. The company wants to streamline operations and improve efficiency.
ASML also unveiled a €12 billion share buyback program extending through December 2028. The initiative returns cash to shareholders while the company restructures.
China represented 36% of Q4 net system sales but is expected to decline to 20% of 2026 revenue. Export controls prevent ASML from shipping EUV machines or advanced deep ultraviolet tools to Chinese customers.
The equipment sold to China is eight generations behind ASML’s most sophisticated technology. Chinese chipmakers continue purchasing older systems for mature chip production.
ASML said it will discontinue reporting quarterly bookings after this release, stating the metric doesn’t accurately reflect business momentum.
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