ASML Q3 Earnings Beat On Strong EUV Demand, AI Boosts Growth

Core Insights - ASML reported third-quarter 2025 results with slightly lower revenue but stronger-than-expected earnings, driven by robust demand for its Extreme Ultraviolet (EUV) lithography systems [1] - The company expects 2026 net sales to match or exceed 2025 levels, fueled by continued investment in artificial intelligence infrastructure [2] Financial Performance - ASML's third-quarter 2025 revenue fell slightly below Visible Alpha Consensus, while EBIT was approximately 2.5 billion euros, 2% above expectations [3] - The company booked 5.4 billion euros in orders for the third quarter, including 3.6 billion euros in EUV orders, significantly exceeding the forecast of 2.2 billion euros [3] Market Drivers - Key drivers supporting ASML's outlook include accelerating AI and EUV demand, normalization of China sales offset by strong AI-led growth elsewhere, and memory scaling to 4F² boosting EUV intensity [4] - Continued investment in AI infrastructure and growing EUV layer usage in Logic and DRAM are positive trends [5] Strategic Outlook - ASML anticipates a significant revenue decline from China due to normalization, but robust AI-related demand for EUV tools elsewhere will offset this headwind [6] - AI workloads are accelerating demand for advanced Logic and DRAM nodes, justifying faster adoption of newer, higher-cost nodes [7] Analyst Ratings and Forecasts - Goldman Sachs analyst Alexander Duval maintained a Buy rating on ASML and raised the price forecast from 935 euros to 1,050 euros [2][8] - Revenue and profit estimates for fiscal 2026–29 were raised by about 1%, reflecting strong Logic and Memory demand, partly offset by lower contributions from China [8] Stock Performance - ASML shares were trading higher by 0.86% to $1,018.12 at publication [9]