ASML to Cut 1,700 Jobs to Streamline Operations Amid Record Q4 Bookings
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy ASML?
Source: seekingalpha
- Job Cuts Announcement: ASML plans to reduce approximately 1,700 jobs, representing 4% of its workforce, primarily in the Netherlands and the U.S. technology and IT sectors, aimed at streamlining operations for enhanced efficiency.
- Management Impact: The layoffs will predominantly affect management and leadership roles, highlighting the company's complexity in coordination, as CFO Roger Dassen emphasized the need for engineers to focus on their core technical work.
- Record Q4 Performance: ASML reported record Q4 bookings of €13.2 billion, significantly exceeding the average analyst estimate of €6.85 billion, underscoring strong market demand and the company's leadership position in the semiconductor industry.
- Positive Outlook: The company expects total net sales for 2026 to range between €34 billion and €39 billion, surpassing previous guidance, indicating confidence in future growth and the potential of the market.
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Analyst Views on ASML
Wall Street analysts forecast ASML stock price to rise
12 Analyst Rating
12 Buy
0 Hold
0 Sell
Strong Buy
Current: 1443.660
Low
1385
Averages
1583
High
1911
Current: 1443.660
Low
1385
Averages
1583
High
1911
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.
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- Robust Market Demand: Customers have indicated that memory chip demand is sold out for 2026, with supply constraints expected to persist, driving increased capital expenditures in advanced logic and memory markets, ensuring future growth potential for ASML.
- Enhanced Shareholder Returns: Despite record R&D spending, ASML plans a 17% increase in dividends and a €12 billion stock buyback program from 2026 to 2028, demonstrating a strong commitment to shareholders and healthy cash flow.
- Long-term Investment Value: With a forward P/E ratio of 39.3, ASML's valuation is high, yet its leadership in AI and semiconductor manufacturing, along with sustained high margins, positions it as an ideal choice for long-term investors.
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- Management Appointments: The AGM approved the reappointment of Terri Kelly and An Steegen, along with the appointment of Benjamin Loh to the Supervisory Board, ensuring stability and continuity in leadership.
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- ASML's Market Position: While TSMC's delay may impact Wall Street's forecasts, ASML maintains a monopoly in this segment and continues to see strong demand from companies like Intel and Samsung, indicating that it will not face significant short-term repercussions.
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See More
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See More
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- Robust Market Demand: Customers have indicated that memory chip demand is sold out for 2026, with supply constraints expected to persist, driving increased capital expenditures in advanced logic and memory markets, ensuring future growth potential for ASML.
- Enhanced Shareholder Returns: Despite record R&D spending, ASML plans a 17% increase in dividends and a €12 billion stock buyback program from 2026 to 2028, demonstrating a strong commitment to shareholders and healthy cash flow.
- Long-term Investment Value: With a forward P/E ratio of 39.3, ASML's valuation is high, yet its leadership in AI and semiconductor manufacturing, along with sustained high margins, positions it as an ideal choice for long-term investors.
See More
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- AGM Resolutions: ASML held its AGM on April 22, 2026, where the statutory financial statements for the 2025 fiscal year were adopted, indicating a robust financial position that enhances investor confidence.
- Dividend Proposal: A final dividend of €2.70 per ordinary share was proposed, leading to a total dividend of €7.50 per share for 2025, reflecting the company's commitment to shareholder returns amidst strong performance.
- Management Appointments: The AGM approved the reappointment of Terri Kelly and An Steegen, along with the appointment of Benjamin Loh to the Supervisory Board, ensuring stability and continuity in leadership.
- Share Buyback Authorization: A proposal was made to authorize the management to repurchase up to 10% of ASML's issued share capital from April 22, 2026, to October 22, 2027, demonstrating confidence in the stock's value and a strategic response to market fluctuations.
See More
Intel's Q1 Earnings Exceed Expectations Significantly
- Earnings Beat: Intel reported an adjusted EPS of 29 cents for Q1, significantly surpassing the expected 1 cent, with revenue hitting $13.58 billion against an expectation of $12.42 billion, indicating signs of recovery as shares surged 16% in after-hours trading.
- Data Center Growth: The data center segment saw a 22% year-over-year revenue increase to $5.1 billion, reflecting a surge in demand for CPUs, marking Intel's gradual recovery in the AI sector and enhancing its competitive position in the market.
- Strategic Investment and Partnership: Intel announced a collaboration with Elon Musk's Terafab chip complex to produce high-performance chips using its upcoming 14A process for Tesla and SpaceX, showcasing a strategic pivot towards high-end chip manufacturing.
- Challenges and Outlook: Despite revenue growth, Intel's net loss widened to $4.28 billion, indicating significant challenges ahead, as the company must improve yields on new processes to meet market demands, especially in competition with rivals.
See More
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- Earnings Beat: Intel reported adjusted earnings per share of 29 cents, significantly surpassing the expected 1 cent, indicating signs of recovery and boosting market confidence.
- Revenue Growth: The company achieved revenue of $13.58 billion, a 7.2% increase year-over-year, marking a turnaround after five revenue declines in the past seven quarters, suggesting a potential revival.
- Stock Surge: Following the earnings report, Intel's stock jumped 15% in after-hours trading, with an over 80% increase this year, reflecting investor optimism about its future prospects.
- Positive Outlook: Intel expects second-quarter revenue between $13.8 billion and $14.8 billion, with adjusted earnings per share of 20 cents, both exceeding analyst expectations of $13.07 billion in revenue and 9 cents EPS, indicating strong confidence in future growth.
See More
TSMC Delays Purchase of ASML's New Equipment
- Purchase Delay: TSMC has decided to postpone the purchase of ASML's new extreme ultraviolet lithography machines, which cost $400 million each, until 2029, a strategy that could enhance profit margins despite potential redundancies and bottlenecks from multi-patterning.
- Market Demand Impact: Analysts suggest that TSMC's delay is linked to uncertainties in AI market demand, particularly as around 45% of data center projects in the U.S. are delayed or canceled due to grassroots opposition, which could affect the stability of future chip demand.
- ASML's Market Position: While TSMC's delay may impact Wall Street's forecasts, ASML maintains a monopoly in this segment and continues to see strong demand from companies like Intel and Samsung, indicating that it will not face significant short-term repercussions.
- Investor Caution: Analysts advise AI investors to tread carefully and gather more information to navigate potential market fluctuations and demand changes, especially in light of the risk of a collapse in chip demand.
See More
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- Quarterly Profit Surge: SK Hynix reported a quarterly operating profit of 37.61 trillion won, a fivefold increase year-over-year, with sales nearly tripling to 52.58 trillion won, indicating strengthened competitiveness in the market driven by robust AI memory demand.
- High Bandwidth Memory Demand: Management highlighted that high-bandwidth memory (HBM), a critical component for Nvidia accelerators, is expected to see demand exceed supply for the next three years, which will further stabilize prices and enhance profitability.
- Investment Growth Plans: The company plans to significantly increase capital expenditures beyond the 30.2 trillion won earmarked for 2025, alongside an announced $8 billion investment in advanced chipmaking tools from ASML, demonstrating a strong commitment to future technological advancements.
- Market Risk Warning: Despite strong results, investor reactions were cautious, with shares declining 3.3% after reaching an intraday high, as some investors express concerns over the memory industry's historical volatility and the potential emergence of new competitors, while management pointed to risks from rapid technological shifts and infrastructure constraints.
See More
