ASML Earnings Show Record Orders and Outlook

ASML earnings on Jan. 28, 2026 showed record fourth-quarter order intake and a record year-end backlog, and the company guided fiscal 2026 for material sales growth as AI- and EUV-related demand strengthened.

Results and Outlook

ASML Holding said in a press release on Jan. 28, 2026, that fiscal-year 2025 total net sales rose about 16% year-on-year to €32.7 billion. The company reported full-year gross margin of 52.8%, net income of €9.6 billion, and basic earnings per share (EPS) of €24.73. It guided fiscal 2026 net sales between €34 billion and €39 billion, with a gross-margin outlook of 51% to 53%. Management said it expects 2026 to be another growth year, driven largely by a significant increase in extreme ultraviolet (EUV) system sales and growth in installed base business.

In the fourth quarter, total net sales reached €9.7 billion with a gross margin of 52.2%. Quarterly net income was €2.8 billion, and diluted EPS was €7.64. For the first quarter of 2026, ASML forecast total net sales of €8.2 billion to €8.9 billion, gross margins of 51% to 53%, research and development (R&D) expenses near €1.2 billion, and selling, general, and administrative (SG&A) costs around €0.3 billion.

Orders, Backlog, and Demand Drivers

The company reported a record fourth-quarter net bookings total of €13.2 billion, including €7.4 billion in EUV orders, and a year-end backlog of €38.8 billion. Systems revenue dominated fourth-quarter sales, totaling about €7.6 billion, or 78.4% of the quarter’s revenue, up 6.6% year-on-year. This growth was driven by EUV and other advanced-node systems. Secondary reports indicated roughly 56% of the quarter’s bookings were linked to memory customers.

Operating expenses rose 14.4% year-on-year to €1.6 billion as ASML continued investing in R&D and expanding its footprint. Cash and equivalents at quarter-end stood at €13.3 billion. The board approved a total dividend of €7.50 per share for fiscal 2025, up 17% from 2024.

Valuation and Execution Risks

Secondary commentary noted forward price-earnings multiples in the mid-40s to low-50s, raising debate over whether the stock fully reflects the company’s 2026 growth outlook. Analysts also flagged capacity constraints and China exposure, with about half of some legacy system bookings tied to China. Other observers considered those concerns overstated.

Record orders, a large backlog, and raised guidance improve visibility on future revenue, but investors must weigh these factors against execution risks and valuation levels as ASML enters 2026.