ASML Reports Record Q4 Results, Stock Rises
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1d ago
0mins
Source: seekingalpha
- Record Performance: ASML reported Q4 bookings of €13.2 billion, exceeding analyst expectations of €6.85 billion, leading to a nearly 5% rise in its stock price in Amsterdam, indicating strong market demand and growth potential.
- Sales Growth: Q4 net sales increased approximately 5% year-over-year to €9.72 billion, demonstrating robust performance in the semiconductor equipment market, with total net sales projected to reach €32.7 billion in 2025, a 16% increase from 2024.
- Customer Stock Surge: The strong results boosted the stock prices of ASML's customers, including Taiwan Semiconductor and Intel, which rose 2.4% and 6.1% respectively, reflecting market optimism about the semiconductor industry's outlook.
- Industry Impact: Semiconductor materials and equipment stocks in Europe and the U.S. rose broadly, with STMicroelectronics and NXP Semiconductors gaining over 3% and nearly 3%, respectively, showcasing ASML's positive influence on the entire sector.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for ASML is 1344 USD with a low forecast of 1140 USD and a high forecast of 1500 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
7 Analyst Rating
6 Buy
1 Hold
0 Sell
Strong Buy
Current: 1422.920
Low
1140
Averages
1344
High
1500
Current: 1422.920
Low
1140
Averages
1344
High
1500
About ASML
ASML Holding N.V. is a holding company based in the Netherlands. The Company operates through its subsidiaries in the Netherlands, the United States, Italy, France, Germany, the United Kingdom, Ireland, Belgium, South Korea, Taiwan, Singapore, China, Hong Kong, Japan, Malaysia and Israel. The Company operates through one business segment which is engage in development, production, marketing, sales, upgrading and servicing of advanced semiconductor equipment systems, consisting of lithography, metrology and inspection systems. The Company offers TWINSCAN systems, equipped with lithography system with a mercury lamp as light source (i-line), Krypton Fluoride (KrF) and Argon Fluoride (ArF) light sources for processing wafers for manufacturing environments for which imaging at a small resolution is required. TWINSCAN systems also include immersion lithography systems (TWINSCAN immersion systems).
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
ASML Reports Record Q4 2025 Earnings Driven by AI Demand
- Strong Performance: ASML reported a net revenue of EUR 32.7 billion for 2025, with a gross margin of 52.8% and a net income of EUR 9.6 billion, translating to an earnings per share of nearly EUR 25, highlighting the company's robust growth potential driven by AI demand.
- EUV Business Growth: EUV revenue surged 39% year-on-year, primarily due to an increase in the number of tools and higher sales prices, with expectations for significant growth in the EUV business in 2026, further solidifying ASML's leadership in the semiconductor equipment market.
- Restructuring Plan: The company announced a reduction of 1,700 jobs to enhance engineering capabilities, with plans to create 1,400 engineering positions, reflecting management's strategic focus on boosting innovation and addressing future market demands.
- Future Outlook: Management anticipates net revenue for 2026 to range between EUR 34 billion and EUR 39 billion, representing a 12% growth, while the share of sales from the Chinese market is expected to decrease to 20%, demonstrating a keen ability to adapt to market dynamics.
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ASML Reports Strong Q4 Earnings with Doubling Orders
- Order Surge: ASML's Q4 bookings skyrocketed from €5.4 billion in Q3 to €13.2 billion, with full-year bookings up 48% to €28 billion, indicating robust demand in the semiconductor sector that could drive future capacity expansion.
- Revenue Growth: The company reported a 16% increase in full-year revenue to €32.7 billion, although this growth rate lags behind bookings, suggesting a rapidly accelerating market demand for its equipment, particularly in logic and memory segments.
- Rising Technology Demand: CEO Christophe Fouquet highlighted that revenue from extreme ultraviolet lithography (EUV) machines is expected to rise significantly due to increasing demand for advanced logic and DRAM, signaling promising investment opportunities in future technologies.
- AI-Driven Market Potential: ASML's equipment demand is closely tied to the rapid growth in AI computing power, and despite concerns about a market bubble, the actual surge in demand presents a positive outlook for the semiconductor industry.
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