ASML Shatters Expectations with Record-Breaking Order Intake

The Dutch semiconductor equipment giant ASML has reported a staggering surge in new orders for the fourth quarter of 2025, dramatically outpacing even the most bullish market forecasts. New bookings reached €13.2 billion, nearly double the average analyst estimate of €6.85 billion. This remarkable performance is being fueled by intense demand for the company's advanced lithography systems, which are critical for manufacturing the high-performance chips required for artificial intelligence applications.

ASML concluded the quarter with revenue of €9.7 billion, achieving a gross margin of 52.2%. Net profit for the period stood at €2.8 billion, translating to earnings per share of €7.35.

Reflecting this strong performance and a confident outlook, the company announced a 17% increase in its dividend for 2025, raising it to €7.50 per share. Furthermore, ASML unveiled a new share buyback program of up to €12 billion, set to run through the end of 2028. This replaces a previous €7.6 billion repurchase initiative that concluded in December 2025.

For the full 2025 fiscal year, the company posted revenue of €32.7 billion, a significant jump from the €28.3 billion recorded the previous year. Its order backlog at year-end was a robust €38.8 billion.

Should investors sell immediately? Or is it worth buying ASML?

EUV Technology Drives Demand

A deep dive into the record order book reveals the primary engine of growth: Extreme Ultraviolet (EUV) lithography systems. Orders for these highly complex machines alone accounted for €7.4 billion of the total €13.2 billion in new bookings, representing more than half of the quarterly volume. EUV technology is indispensable for producing the cutting-edge semiconductors that power advanced AI hardware and other demanding applications.

Bullish Guidance for the Year Ahead

Building on this momentum, ASML provided an optimistic forecast for 2026. The company anticipates full-year revenue in a range between €34 billion and €39 billion, with a projected gross margin of 51% to 53%. For the opening quarter of 2026, management expects revenue to land between €8.2 billion and €8.9 billion.

This confidence is rooted in direct feedback from the company's customer base, which ASML states indicates "a significantly more positive assessment of the mid-term market outlook." The anticipated sustained investment in AI infrastructure is cited as a key driver of this positive sentiment.

Market Analysts React Positively

The impressive results and guidance prompted several investment banks to revise their ratings upward. Among them, Barclays upgraded its stance on ASML shares from "Equal Weight" to "Overweight." Analysts at the bank pointed to the historic order intake and a forward outlook they view as conservative, suggesting potential for further upside.