ASML delivered a blockbuster end to 2025, beating expectations with record bookings that signal a strong cycle. Driven by insatiable demand for AI infrastructure, customers are aggressively securing capacity for the next generation of semiconductor manufacturing.
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a. Results: A Record-Breaking Quarter
ASML reported Q4 2025 net sales of €9.7 billion, which sits at the higher end of their guidance and reflects a substantial jump from €7.5 billion in Q3. This was largely driven by the EUV systems.
Net System Sales: Reached €7.6 billion, with EUV accounting for 48% of the mix (vs. 38% in Q3). EUV includes the recognition of revenue for two High-NA systems.
Source: Fiscal.ai (affiliate link with a 15% discount for StockOpine readers)
Bookings: The headline number was the record net bookings of €13.2 billion (vs. €5.4 billion in Q3). This included €7.4 billion in EUV orders alone, a clear signal that customers (Logic and Memory) are aggressively preparing for 2nm and advanced DRAM nodes.
Source: Fiscal.ai (affiliate link with a 15% discount for StockOpine readers)
For the first time in recent memory, Memory bookings (56%) surpassed Logic (44%), driven by frantic demand for HBM (High Bandwidth Memory) and DDR5 to support AI workloads.
The gross margin came in at 52.2%, up from 51.6% in Q3, landing comfortably within guidance despite the dilutive impact of early High-NA system recognition. Net income was €2.8 billion, representing 29.2% of sales.
b. Backlog & Services
While the headline revenue figures grab the attention, two underlying metrics confirm the durability of this cycle:
Record Backlog: The order book ended the year at a massive €38.8 billion. The quality of this backlog is pristine. EUV systems now account for €25.5 billion (or 66%) of the total, providing visibility for 2026. Furthermore, the risk of cancellations from China has largely dissipated, as the region now represents only ~20% of the backlog, aligning future revenue with a more sustainable geographic mix. For context, China sales accounted for 33% in 2025 and 36% in Q4’25.
“As part of the outlook for non-EUV, we expect the China region's share in our total net sales in 2026 to be in line with our current system backlog, which is around 20 percent.” - Christophe Fouquet, CEO
Installed Base Management grew 26% YoY to €8.2 billion in FY25. CFO Roger Dassen highlights upgrades as “the easiest and fastest way for customers to get additional output capacity” in a supply-constrained market. The momentum continues into Q1’26 with expected sales of ~€2.4 billion (implied +20% YoY), driven by “increasing service revenue from our growing installed base of EUV systems” and strong “appetite for upgrade business” to solve short-term capacity needs.