In the fourth quarter of 2025, ASML secured a record €13.2 billion in system bookings—more than double consensus expectations—with €7.4 billion driven by extreme ultraviolet (EUV) systems. Management reported over one year of order backlog across EUV and deep ultraviolet (DUV) platforms, providing high visibility into the company’s revenue stream through late 2026 and underpinning plans to ramp production capacity at its Veldhoven facility.

ASML delivered net income growth of 27% year-over-year in Q4, lifting gross margins to 52.8%. Despite elevated research & development spend—up 15% from the prior year—operating leverage led to a 22% expansion in operating profit. Free cash flow conversion remained strong at 88% of net income, reflecting tight working capital management even as inventory rose marginally to support the backlog.

CEOs Christophe Fouquet and Peter Wennink outlined 2026 net sales guidance of €34 billion to €39 billion, representing growth of 15–30% over 2025. To return excess cash to shareholders, the board authorized a €12 billion share buyback program through 2028 and increased the annual dividend by 17% to €7.50 per share. Capital expenditures are expected to rise by 20% to expand capacity for next-generation High-NA EUV tools.

Since a trough in mid-2025, ASML’s share price has more than doubled to record highs, driving the forward P/E ratio to 44×—well above the 32× semiconductor equipment peer average. Despite the strong fundamentals, investors have pared positions following the rally: net institutional selling in January totaled €1.1 billion. Analysts’ price targets now range from a low of €950 to a high of €1 672, reflecting both upside case assumptions for AI-driven capex and concerns over near-term demand variability tied to power-grid constraints and supply-chain lead times.