In the fourth quarter, ASML reported net income growth of 27% year-over-year alongside a 4.9% rise in revenue, driven by robust sales of its EUV lithography systems. Gross margins expanded to 52.8%, reflecting operating leverage in system deliveries, while services revenues dipped marginally under higher logistics and component costs. Despite these solid fundamentals, the stock consolidated near its all-time highs, prompting some shareholders to take profits after a more than 40% rally since November.

Management announced fourth-quarter net bookings of €13.2 billion, nearly double consensus forecasts, with over 1.7 years of order backlog on the books. Memory customers accounted for 56% of Q4 orders, signalling diversification beyond AI chipmakers. With total backlog exceeding €30 billion, ASML reiterated its expectation that 2026 will be a growth year, forecasting net sales between €34 billion and €39 billion and gross margins above 51%.

To capitalise on its strong cash flow, ASML authorised a €12 billion share buyback programme through 2028 and raised its annual dividend by 17% to €7.50 per share. Nonetheless, the stock trades at roughly 44x forward earnings—well above the 32x sector median—leading several analysts to downgrade their ratings to Hold and caution that near-term demand variability and grid capacity constraints in key manufacturing regions could introduce volatility.