ASML reports €7.5 billion total net sales and €2.1 billion net income in Q3 2025

ASML reported Q3 2025 net sales of €7.5 billion and a gross margin of 51.6%, meeting guidance, with net bookings reaching €5.4 billion, including €3.6 billion in EUV. The company forecasts a strong Q4 with net sales between €9.2 billion and €9.8 billion, projecting a full-year 2025 net sales increase of approximately 15% and a gross margin of around 52%. While ASML expects 2026 total net sales not to fall below 2025, it anticipates a significant decline in China customer demand for that year, offset by continued positive momentum from AI investments driving demand in leading-edge Logic and advanced DRAM, alongside progress in EUV adoption and new product shipments for Advanced Packaging.

Analysis

ASML reported Q3 2025 net sales of €7.5 billion and a 51.6% gross margin, meeting guidance, with net bookings at €5.4 billion, including €3.6 billion from EUV. The company projects a strong Q4 2025 with net sales between €9.2 billion and €9.8 billion, guiding for a full-year 2025 sales increase of approximately 15% and a gross margin around 52%.

Growth is fueled by positive momentum from AI investments, driving demand in leading-edge Logic and advanced DRAM. ASML is advancing technological leadership through increasing EUV adoption, High NA EUV progress, and the shipment of its first Advanced Packaging product. A partnership with Mistral AI further aims to enhance system performance and customer yield.

While 2026 total net sales are not expected to fall below 2025, ASML anticipates a significant decline in China customer demand and sales for 2026, following strong 2024 and 2025 performance. This geopolitical headwind will be detailed in January 2026, with other market segments expected to provide offsetting strength.

ASML declared an interim dividend of €1.60 per share and repurchased €148 million in shares during Q3. Although the current €12 billion buyback program is not expected to complete by 2025, a new program is slated for announcement in January 2026, signaling continued commitment to shareholder returns.

Key Decisions for Investors

• Investors should closely monitor ASML's detailed 2026 outlook in January, specifically evaluating the projected impact of declining China sales against growth in other segments like AI-driven demand.
• Assess the long-term implications of ASML's continued innovation in EUV, High NA EUV, and Advanced Packaging, as these technologies are crucial for maintaining its market leadership and future revenue streams.
• Consider the company's consistent capital return strategy, including the declared interim dividend and the planned new share buyback program, as indicators of management's confidence and commitment to shareholder value.