In the fourth quarter, ASML reported record net equipment bookings of €13.2 billion, almost doubling consensus expectations of €6.7 billion. This surge was driven by strong demand for extreme ultraviolet (EUV) systems, with 14 units ordered at an average selling price above €500 million each. As a result, the company’s order backlog now exceeds one year of production capacity, providing revenue visibility well into 2027 and underpinning its leadership in advanced lithography for AI and high-performance memory chips.

ASML delivered net income growth of 27% year-over-year in Q4, reflecting operating leverage from higher system volumes and disciplined cost control. Gross margin improved by 80 basis points to 52.8%, while R&D investment rose 15% to support development of next-generation high-NA EUV tools. Operating margin expanded to 34%, demonstrating the company’s ability to scale profitability even as it accelerates technology road-map spending.

Management has set 2026 net sales guidance at €34 billion to €39 billion, implying mid-teens revenue growth driven by continued strength in EUV deployments and services. To enhance shareholder value, the board authorized a €12 billion share buyback program through 2028 and increased the annual dividend by 17% to €7.50 per share. These measures reflect confidence in cash flow generation, with free cash flow expected to exceed €12 billion for the full year.

To improve agility, ASML plans to streamline its global operations by reducing approximately 1,700 roles in the Netherlands and the U.S. This restructuring is expected to generate annualized savings of €200 million by the end of 2026, partially offsetting increased manufacturing and supply-chain costs. The company reiterated its commitment to maintaining critical engineering and R&D headcount to support high-NA EUV ramp-up while optimizing support functions for greater efficiency.