ASML reported a record €13.2 billion in fourth-quarter net bookings, nearly doubling consensus forecasts. Of those orders, €7.4 billion were for extreme ultraviolet (EUV) systems, with 14 machines sold. Combined with floating orders from earlier in the year, the company now carries more than one year of backlog, equivalent to over €34 billion in secured revenue. This robust order flow underscores sustained demand for ASML’s advanced lithography tools, particularly as chipmakers race to ramp production of AI and high-performance computing chips.

After a period of conservative revenue visibility, ASML’s management has guided 2026 sales to between €34 billion and €39 billion, reflecting mid-teens percentage growth over 2025. The firm reaffirmed its commitment to capital returns by authorizing a €12 billion share buyback program to run through 2028. In addition, the board raised the annual dividend by 17%, signaling confidence in cash generation even as near-term demand may fluctuate due to capital-grid and factory build-out timing.

In spite of a 27% year-over-year increase in net income and gross margins expanding to 52.8% in the latest quarter, ASML shares slipped by over 5% following the earnings release. Investors appeared to take profits after the stock had roughly doubled in seven months. At current multiples—near 44 times forward earnings compared with a 32 times sector median—some analysts caution that upside may be limited in the short term, suggesting a hold stance until visibility on capacity expansion and grid constraints improves.