ASML reported an unprecedented €13.2 billion in fourth-quarter order bookings, nearly double the average analyst expectation of €6.8 billion. EUV system orders alone accounted for €7.4 billion, with 14 machines sold—underscoring major customers’ commitment to scaling advanced node production for AI and high-performance computing. This surge follows a period of cautious capex among chipmakers and signals renewed confidence in semiconductor equipment investments for 2026–2027.

Management raised its full-year 2026 net sales outlook to a midpoint of €36.5 billion, surpassing consensus estimates, and reiterated a target gross margin above 50%. To reward investors, the board authorized a €12 billion share-buyback program through 2028 and increased the 2025 dividend by 17% to €7.50 per share, reflecting strong cash generation and balance-sheet flexibility during the ongoing capex cycle.

In parallel with record orders, ASML announced plans to cut approximately 1,700 positions—roughly 4% of its workforce—primarily in management, technology and IT functions. CFO Roger Dassen explained the move as essential to reducing organizational complexity and accelerating decision-making, enabling engineers to focus on R&D and production efficiency as the company ramps high-NA EUV and next-generation systems.

Reflecting the company’s robust Q4 results and strengthened medium-term outlook, several brokerages upgraded ASML to Buy. Cowen & Co. lifted its price target from €1,000 to €1,500, citing a poised 2027–28 semiconductor capex cycle driven by AI infrastructure build-out. Bernstein and Morgan Stanley echoed this view, forecasting earnings growth of 30%–40% by 2027 as chipmakers deploy new lithography capacity.