Financial Data and Key Metrics Changes - In Q4 2025, total net sales were EUR 9.7 billion, with net system sales at EUR 7.6 billion, including EUR 3.6 billion from EUV system sales and EUR 4 billion from non-EUV system sales [6][8] - Gross margin for Q4 was 52.2%, and net income was EUR 2.8 billion, representing 29.2% of total net sales, resulting in earnings per share of EUR 7.35 [7][8] - For the full year 2025, net sales were EUR 32.7 billion, with a gross margin of 52.8% and net income of EUR 9.6 billion, resulting in earnings per share of EUR 24.73 [9][10] Business Line Data and Key Metrics Changes - EUV system sales for 2025 were EUR 11.6 billion, a 39% increase from 2024, while DUV system sales decreased by 6% year-over-year to EUR 12 billion [9] - Installed base management sales increased by 26% year-over-year to EUR 8.2 billion [9] - R&D spending for 2025 was EUR 4.7 billion, approximately 14% of sales, while SG&A expenses increased to EUR 1.3 billion [10] Market Data and Key Metrics Changes - Logic system revenue was EUR 16.1 billion, a 22% increase from 2024, while memory system revenue was EUR 8.4 billion, a 2% decrease from 2024 [9] - Q4 net bookings were EUR 13.2 billion, with 56% from memory and 44% from logic [8] Company Strategy and Development Direction - The company is focused on innovation and capacity expansion, particularly in EUV technology, to meet the growing demand from advanced logic and DRAM customers [15][19] - The strategy includes increasing the share of EUV systems in the product mix and enhancing productivity through R&D investments [20] - The company anticipates significant revenue growth in EUV systems due to increased capacity needs driven by AI-related infrastructure [15][16] Management's Comments on Operating Environment and Future Outlook - Management noted an improved market outlook, particularly due to the buildup of data centers and AI infrastructure, leading to increased demand for advanced logic and DRAM [15][16] - There is a positive sentiment among foundry customers regarding long-term demand sustainability, with expectations for capacity expansion [15][16] - The company expects Q1 2026 total net sales to be between EUR 8.2 billion and EUR 8.9 billion, with a gross margin between 51% and 53% [11] Other Important Information - The company plans to return EUR 8.5 billion to shareholders through dividends and share buybacks in 2025, with a new share buyback program announced for up to EUR 12 billion [12][13] - The company expects to declare a total dividend of EUR 7.50 per ordinary share for 2025, a 17% increase compared to 2024 [11] Q&A Session Summary Question: Outlook for calendar 2026 regarding EUV bookings - Management indicated that the guidance is influenced by customer progress in completing fabs and the ability to ramp production accordingly [23][24] Question: Changes in vision for High-NA tools in 2026 - Management expects continued progress in both DRAM and logic customer adoption, with qualification data collection expected to last most of the year [26][27] Question: Revenue growth guidance for 2026 - Management stated that growth is largely driven by customer readiness to take tools and their ability to complete fab construction [33][34] Question: Manufacturing capacity capabilities for Low-NA EUV tools - Management confirmed that capacity is dynamic and will increase gradually, with a focus on ramping up production in response to demand signals [35][36] Question: Customer visibility on equipment needs for the coming years - Management noted that customers are increasingly vocal about their capacity planning and expectations for demand, which aligns with public statements [41][42] Question: Impact of China on revenue guidance - Management indicated that China is expected to account for about 20% of total sales, and its performance will influence overall revenue guidance [50][51] Question: EUV capacity and booking trends - Management clarified that customers are not waiting for confirmation of capacity before booking, as they are aware of the company's plans to increase capacity [64][66]

ASML (NasdaqGS:ASML) Q4 2025 Earnings call January 28, 2026 09:00 AM ET Company ParticipantsC.J. Muse - Senior Managing DirectorChristophe Fouquet - CEODidier Scemama - Managing Director and Senior analystJim Kavanagh - Head of Investor RelationsRoger Dassen - CFOConference Call ParticipantsAlexander Duval - AnalystAndrew Gardiner - Managing Director and Senior Equity AnalystChris Caso - Managing Director and Senior Equity AnalystFrançois Bouvignies - Research AnalystJoe Quatrochi - AnalystKrish Sankar - Ma ...

ASML (NasdaqGS:ASML) Q4 2025 Earnings call January 28, 2026 09:00 AM ET Speaker2Good day, and thank you for standing by. Welcome to the ASML 2025 fourth quarter and full year financial results conference call on January 28th, 2026. At this time, all participants are in a listen-only mode. After the speaker's introduction, there will be a question-and-answer session. To ask a question during the session, you need to press star one one on your telephone. You will then hear an automated message advising your h ...

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]