Core Viewpoint - ASML's Q3 financial results were stable, with AI storage demand being a key support factor, and the Q4 guidance is optimistic, although attention is needed on the anticipated decline in Chinese demand by FY2026 and geopolitical risks [6][31]. Financial Performance - ASML reported Q3 revenue of €7.516 billion, slightly below the industry consensus expectation of €7.68 billion, with a year-on-year increase of 0.7% and a quarter-on-quarter decrease of 2.3% [6][9]. - The company maintained its full-year growth forecast at 15%, with Q4 revenue guidance set between €9.2 billion and €9.8 billion [10][31]. - The earnings per share were €5.49, slightly above the expected €5.33, primarily due to lower expenses than anticipated [6][19]. Order Book and Market Dynamics - New orders in Q3 reached €5.4 billion, exceeding market expectations of €4.97 billion, driven by a significant increase in storage-related orders [11][13]. - The structure of new orders shifted, with the share of logic-related orders dropping from 84% to 53%, while storage orders rose from 16% to 47% [13][17]. Cost Management and Profitability - ASML's cost control measures resulted in lower expenses than previously guided, contributing to a higher-than-expected gross margin [19][22]. - Q3 gross margin was positively impacted by a reduction in sales and R&D expenses, which were lower than the guidance provided in Q2 [22][24]. Product and Revenue Structure - In Q3, revenue from lithography machines was €5.554 billion, accounting for 73.9% of total revenue, while service revenue was €1.962 billion, making up 26.1% [26]. - The average selling price for EUV machines was approximately €317 million, reflecting a 5.4% decrease quarter-on-quarter, while ArFi product prices also saw a decline [27][30]. Future Outlook - The management's guidance for Q4 is optimistic, with expectations for revenue to reach up to €9.8 billion, although there are concerns regarding a significant drop in demand from Chinese customers by FY2026 [8][31]. - The overall market sentiment remains cautious due to geopolitical tensions and the potential impact on capital expenditures in the semiconductor industry [18][31].

Core Viewpoint - ASML's Q3 financial results showed a slight miss in revenue expectations but exceeded earnings per share forecasts, driven by lower expenses. The company maintains an optimistic outlook for Q4 and the overall year despite challenges in the Chinese market [1][3][4]. Financial Performance - Q3 revenue reached €75.16 billion, slightly below the expected €76.8 billion, with a year-over-year growth of 0.7% and a quarter-over-quarter decline of 2.3% [1][4]. - Earnings per share were €5.49, surpassing the expected €5.33, primarily due to lower expenses [1][4]. - The gross margin was higher than expected, attributed to cost control measures, with a gross margin rate of 51.9% [15][17]. Order Book and Market Dynamics - New bookings for Q3 totaled €5.4 billion, exceeding market expectations of €4.97 billion, indicating strong demand, particularly in the storage sector [3][7]. - The share of ArFi products in revenue increased to 52%, surpassing EUV products for the first time since Q4 2022, reflecting a shift in market demand [10][12]. - Management indicated that demand from Chinese customers is expected to decline significantly by FY2026, which is already factored into market expectations [3][12]. Guidance and Future Outlook - For Q4, ASML projects revenue between €9.2 billion and €9.8 billion, with a gross margin forecast of 51%-53%, maintaining an overall growth target of 15% for the year [3][6]. - The company has successfully navigated geopolitical challenges, with a 42% increase in market capitalization this year, bolstered by strong demand in the storage market [14][6]. Product and Revenue Structure - Q3 revenue from lithography machines was €55.54 billion, while service revenue was €19.62 billion, maintaining a high proportion of service revenue [20][23]. - The average selling price of EUV machines decreased by approximately 5.4%, while ArFi products saw a 3.4% decline, marking the first drop after three consecutive quarters of price increases [23][25].