ASML Holding Q3 Earnings Beat Estimates, Revenues Rise Y/Y

Core Insights - ASML Holding reported third-quarter 2025 earnings of €5.48 per share, a 3.8% increase year over year, surpassing Zacks Consensus Estimates by 2.2% [1][9] - Total net sales for the third quarter were €7.52 billion, reflecting a 0.7% year-over-year increase, but fell short of Zacks Consensus Estimate by 0.3% [1][9] Financial Performance - Segment-wise, ASML's Systems net sales were €5.554 billion, contributing 73.9% to total sales, but declined by 6.3% from the previous year, driven mainly by logic sales [2] - The Services and Field segment reported net sales of €1.962 billion, accounting for 26.1% of total sales, marking a significant increase of 27.3% year over year [2] - ASML's gross margin improved to 51.6%, an increase of 80 basis points from the prior year [2] Operating Expenses and Margins - Operating expenses were €1.41 billion, up 4.4% year over year, but as a percentage of sales, it decreased by 160 basis points to 18.80% [3] - The non-GAAP operating margin was 32.8%, expanding by 20 basis points year over year [3] Balance Sheet and Cash Flow - As of September 28, 2025, ASML had cash and short-term investments of €5.13 billion, down from €7.25 billion in the previous quarter [4] - Inventories increased to €11.76 billion from €11.58 billion, while accounts receivables rose to €5.36 billion from €4.99 billion [4] - Long-term debt decreased to €2.70 billion from €3.69 billion, with a net negative cash flow of €2.117 billion [5] Guidance - For Q4 2025, ASML expects net sales between €9.2 billion and €9.8 billion, with a gross margin forecast of 51% to 53% [6] - For the full year 2025, ASML anticipates total net sales growth of approximately 15% year over year, with a gross margin around 52% [7]