Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were €7.5 billion, within guidance, with net system sales at €5.6 billion, including €2.1 billion from EUV system sales and €3.4 billion from non-EUV system sales [6][7] - Gross margin for the quarter was 51.6%, and net income was €2.1 billion, representing 28.3% of total net sales, resulting in an EPS of €5.49 [7][8] - The effective tax rate for Q3 was 17.8%, with an expected annualized effective tax rate of around 17% for the full year [7] - Cash, cash equivalents, and short-term investments at the end of Q3 were €5.1 billion [7] Business Line Data and Key Metrics Changes - Installed Base Management sales for the quarter were €2 billion, as guided [7] - Net system bookings for Q3 were €5.4 billion, with €3.6 billion from EUV systems and €1.8 billion from non-EUV systems [8] - Net system bookings were slightly weighted towards Logic at 53%, while Memory accounted for 47% [8] Market Data and Key Metrics Changes - The company expects Q4 total net sales to be between €9.2 billion and €9.8 billion, with installed base management sales around €2.1 billion [9] - The company anticipates a strong Q4, similar to the previous year, with a gross margin expected between 51% and 53% [9] Company Strategy and Development Direction - The company is focusing on advancing its technology roadmap, particularly in EUV and 3D integration, to meet customer demands [12][14] - A strategic partnership with Mistral AI was announced, aiming to embed AI across the company's portfolio to enhance performance and productivity [16] - The company expects a shift towards more advanced Logic and DRAM applications, which will require intensive use of advanced lithography systems [18] Management's Comments on Operating Environment and Future Outlook - Management noted a positive news flow in the industry, particularly regarding AI infrastructure investments, which supports demand in leading-edge logic and advanced DRAM [10] - There is an expectation of a significant decline in China customer demand in 2026 compared to strong business in 2024 and 2025, but overall sales are not expected to fall below 2025 levels [11] - The company is preparing for growth and has been investing in capacity to meet future demand [50][66] Other Important Information - The company paid an interim dividend of €1.6 per ordinary share in Q3, with another expected in Q4 [8] - A new share buyback program is expected to be announced in January 2026 [8] Q&A Session Summary Question: Can you elaborate on the positive news that helped reduce uncertainty? - Management highlighted positive developments in AI infrastructure investments, which create a backlog of opportunities for future orders [21][22] Question: What is the visibility for 2026 regarding orders and capacity? - Management indicated that while there is some clarity, it is still early to predict exact impacts for 2026, especially concerning customer demand in China [25][26] Question: How do you view the strength in DRAM and its implications for EUV? - Management stated that the transition to 4F2 DRAM architecture is not expected to reduce EUV layer counts, and they anticipate growth in EUV layers [33][34] Question: What is the outlook for gross margin in 2026? - Management noted that product mix and the expected increase in EUV sales would influence gross margin, but specific guidance would be provided in January [90][91] Question: How is the installed base business expected to develop going into 2026? - Management observed that the service business is growing alongside the installed base, and they will provide updates on upgrade business expectations in January [96][98] Question: How is the company preparing for potential supply limitations in the AI market? - Management emphasized the importance of maintaining dialogue with customers to ensure timely adjustments to production capacity [66][68]

Financial Data and Key Metrics Changes - Total net sales for Q3 2025 were €7.5 billion, within guidance, with net system sales at €5.6 billion, including €2.1 billion from EUV system sales and €3.4 billion from non-EUV system sales [6][7] - Gross margin for the quarter was 51.6%, and net income was €2.1 billion, representing 28.3% of total net sales, resulting in an EPS of €5.49 [7][8] - The effective tax rate for Q3 was 17.8%, with an expected annualized effective tax rate of around 17% for the full year [7] Business Line Data and Key Metrics Changes - Installed Base Management sales for the quarter were €2 billion, as guided [7] - Net system bookings for Q3 were €5.4 billion, with €3.6 billion from EUV systems and €1.8 billion from non-EUV systems, slightly weighted towards Logic at 53% and Memory at 47% [8][9] Market Data and Key Metrics Changes - The company expects Q4 total net sales to be between €9.2 billion and €9.8 billion, with installed base management sales around €2.1 billion [9] - The company anticipates a strong Q4, similar to the previous year, with a gross margin expected between 51% and 53% [9] Company Strategy and Development Direction - The company is focusing on advancing its technology roadmap, particularly in EUV and 3D integration, to meet customer demands in Logic and DRAM markets [10][12] - A strategic partnership with Mistral AI was announced, aiming to embed AI across the company's portfolio to enhance system performance and productivity [16] - The company expects a revenue opportunity between €44 billion and €60 billion by 2030, with gross margins projected between 56% and 60% [18] Management's Comments on Operating Environment and Future Outlook - Management noted a positive news flow in the industry, particularly regarding AI infrastructure investments, which are expected to support demand in Logic and DRAM [10][11] - There is an expectation of a significant decline in China customer demand in 2026 compared to strong business in 2024 and 2025, but overall sales are not expected to fall below 2025 levels [11][12] - The company is preparing for growth and has been investing in capacity to meet future demand [16][67] Other Important Information - The company paid an interim dividend of €1.6 per ordinary share in Q3 2025, with another expected in Q4 [8] - A share buyback program totaling €12 billion is ongoing, with €5.9 billion already utilized [8] Q&A Session Summary Question: Can you elaborate on the positive news that helped reduce uncertainty? - Management highlighted positive developments in AI infrastructure investments, which create a backlog of opportunities for future orders [21][22] Question: What is the visibility regarding China demand? - Management indicated that the high sales levels in China were not sustainable and expected a return to more normalized levels in 2026 [25][26] Question: How should we think about revenue linearity in 2026? - Management stated that while recent orders have been strong, it is too early to predict revenue linearity for 2027 [30][31] Question: Will the transition to 4F2 DRAM architecture negatively impact EUV? - Management clarified that they do not expect a drop in EUV layer counts with the transition to 4F2, and in fact, anticipate growth in EUV layers [34] Question: What is the outlook for gross margin in 2026? - Management noted that product mix and the expected increase in EUV sales would influence gross margin, but specific guidance would be provided in January [90][91]