TLDR
- ASML posted record Q4 orders of €13.2 billion, nearly double analyst estimates of €6.85 billion, driven by AI chip demand
- The company raised 2026 revenue guidance to €34-39 billion, up from previous expectations and signaling at least 20% growth
- More than half of Q4 bookings were for extreme ultraviolet (EUV) machines totaling €7.4 billion
- ASML announced 1,700 job cuts (4% of workforce) to streamline operations and plans a €12 billion share buyback through 2028
- China accounted for 36% of Q4 sales but is expected to drop to 20% of revenue going forward
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ASML Holding reported blockbuster fourth-quarter results that sent shares soaring. The Dutch chipmaker’s order book hit €13.2 billion in Q4, crushing analyst expectations of €6.85 billion.
$ASML (ASML) #earnings are out: pic.twitter.com/CR1VwCjyBF
— The Earnings Correspondent (@earnings_guy) January 28, 2026
The surge marks a record quarter for bookings. CEO Christophe Fouquet attributed the jump to customers’ growing confidence in AI-driven demand for advanced semiconductors.
ASML makes the lithography machines required to manufacture cutting-edge chips. Companies like Taiwan Semiconductor Manufacturing and Intel rely on these tools. The equipment is critical for producing Nvidia AI accelerators that power data centers.
ASML Holding N.V., ASML
The Q4 numbers show chipmakers are betting big on AI’s future. Meta and Microsoft are pouring hundreds of billions into data center construction. This spending spree is forcing semiconductor manufacturers to expand capacity quickly.
Shares jumped 7.5% in Amsterdam trading to reach €1,309, a record high. The stock is up 41% year-to-date. Japanese suppliers like Lasertec and Tokyo Electron also posted gains on the news.
Memory Chip Shortage Drives Orders
More than half of last quarter’s orders were for extreme ultraviolet lithography machines. These EUV tools are ASML’s most advanced products. They generated €7.4 billion in bookings during Q4.
A memory chip shortage is fueling additional demand. Prices for these components have jumped to unprecedented levels. Analysts expect Samsung and SK Hynix to increase production capacity through 2027.
Barclays predicts SK Hynix alone will purchase 12 EUV machines in 2026. ASML said EUV revenue will increase substantially this year as customers ramp up advanced chip production.
TSMC announced plans to spend over $52 billion on capital expenditures in 2026. Much of that investment will go toward advanced manufacturing techniques requiring ASML equipment.
Revenue Guidance Gets Upgrade
ASML raised its 2026 revenue forecast to between €34 billion and €39 billion. The midpoint exceeds analyst expectations of €35.1 billion. The company previously said 2026 sales wouldn’t fall below 2025 levels.
The new guidance suggests revenue growth of at least 20% compared to 2024. Total net sales reached €32.7 billion in 2025. Q1 2026 revenue is expected between €8.2 billion and €8.9 billion.
CFO Roger Dassen said customers have become “more positive in their assessment of the medium-term market perspectives.” Their confidence stems from stronger views on AI demand sustainability.
Nvidia CEO Jensen Huang called the data center buildout “the largest infrastructure project in human history” last week. He said trillions of dollars in additional investment will be needed in coming years.
Job Cuts and Share Buyback Announced
ASML plans to cut 1,700 positions, representing 4% of its workforce. Most layoffs will occur in the Netherlands with some in the United States. Fouquet said the company wants to become more “agile” despite strong performance.
The company also unveiled a €12 billion share buyback program running through December 2028. This returns cash to shareholders while ASML streamlines operations.
China remained ASML’s biggest market in Q4, accounting for 36% of net system sales. However, that percentage is expected to drop to 20% of revenue going forward.
US-led export restrictions prevent ASML from selling EUV machines to China. The company also faces limits on shipping its most advanced deep ultraviolet tools to Chinese customers. The equipment ASML sells to China is eight generations behind its most sophisticated models.
Chinese chipmakers have been purchasing older equipment to produce mature chips. This buying pattern helped boost China’s revenue share in recent quarters.
ASML announced it will stop reporting quarterly bookings going forward. The company argues the metric doesn’t accurately capture business momentum.
