TLDR
- ASML soars 4% post-earnings as AI boom and EUV demand fuel strong Q3
- ASML’s Q3 beats forecasts; robust EUV sales drive bullish Q4 outlook
- ASML’s AI-fueled growth lifts stock; Q4 guidance points to solid finish
- ASML rides AI wave with record EUV demand and strong margin momentum
- ASML stock jumps after Q3 strength and upbeat 2025–2026 growth outlook
ASML Holding N.V. (ASML) stock surged 4.05% in after-hours trading, reaching $1,023.00 after a regular session close at $983.18.
The Q3 earnings release confirmed strong operational execution and clear growth momentum, supporting ASML’s stock performance. Demand for ASML’s advanced lithography systems and continued AI-driven investment cycles contributed to the solid near-term growth outlook.
Q3 Results Exceed Expectations While Guidance Signals Strong Q4 Finish
ASML Holding N.V. delivered €7.5 billion in total Q3 net sales, which matched internal forecasts and market expectations. The company reported €2.1 billion in net income and a gross margin of 51.6%, aligning with its prior guidance. In addition, ASML sold 66 new and 6 used lithography systems, supporting continued order flow.
Quarterly net bookings totaled €5.4 billion, including €3.6 billion in EUV systems, which reinforces sustained demand for technology. ASML Holding N.V. forecasted Q4 net sales between €9.2 billion and €9.8 billion, with a gross margin range of 51% to 53%. This outlook suggests a strong end to 2025, aligning with the company’s projected 15% annual sales growth.
Gross margin strength continues to reflect disciplined pricing and high-value product mix, particularly in EUV and High NA systems. ASML Holding N.V. (ASML) expects to maintain a full-year gross margin near 52%, supported by resilient service and product segments. AI-related customer demand remains a central growth driver, along with strategic system upgrades.
AI Momentum and Lithography Innovation Strengthen Market Position
ASML benefited from expanded AI-related infrastructure buildouts across logic and DRAM, boosting system demand globally. The company introduced the TWINSCAN XT:260 for advanced packaging, offering productivity gains of up to 4x over existing tools. These technical advancements enable enhanced chip performance and support customer migration to 3D integration.
The firm also reported progress on High NA EUV development, which will increase patterning precision and throughput in leading-edge nodes. ASML Holding N.V. (ASML) noted growing lithography intensity, reinforcing its leadership in high-end semiconductor manufacturing solutions. Its partnership with Mistral AI aims to boost system performance and customer yields through embedded AI capabilities.
The company flagged a notable sales decline in China for 2026, following strong sales in 2024 and 2025. This headwind may impact geographic revenue mix, but ASML Holding N.V. (ASML) remains confident that 2026 sales will not fall below 2025 levels. A detailed 2026 forecast is expected in January, alongside the next share buyback program.
Capital Returns and Liquidity Update Support Confidence
ASML Holding N.V. (ASML) declared a €1.60 interim dividend per share, payable on November 6, 2025, as part of its capital return plan. During Q3, the firm repurchased €148 million in stock under its €12 billion buyback program for 2022–2025. However, management no longer expects to complete the full buyback within the original timeline.
As of September 28, total buyback purchases reached €5.9 billion for 9.0 million shares, showing steady repurchase activity. ASML Holding N.V. (ASML) plans to introduce a new share repurchase program in January 2026, maintaining shareholder value focus. Despite reduced cash and investments to €5.1 billion, liquidity remains sufficient to support operations and growth.
The capital allocation strategy underscores ASML Holding N.V. (ASML)’s commitment to striking a balance between R&D investment and shareholder returns. With €1.2 billion in R&D and €320 million in SG&A forecasted for Q4, the company continues funding innovation. ASML Holding N.V. (ASML) reaffirms its leadership in lithography solutions, enabled by strong cash flow and disciplined execution.
