We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
ASML Holding Q4 Earnings Miss Expectations, Revenues Rise Y/Y
Read MoreHide Full Article
Key Takeaways
ASML reported Q4 EPS of EURO 7.34, up 7.3% Y/Y, but earnings missed the consensus estimate.
Systems sales made up 78.4% of ASML revenues, rising 6.6% Y/Y on EUV strength and advanced-node demand.
ASML's gross margin expanded to 52.2%, while Q1 2026 revenues are guided between EURO 8.2B and 8.9B.
ASML Holding (ASML - Free Report) reported fourth-quarter 2025 earnings of €7.34 per share, which increased 7.3% year over year. Converted to USD, ASML’s fourth-quarter 2025 earnings were $8.55 per share, which missed the Zacks Consensus Estimates by 5.11%.
ASML reported total net sales of €9.72 billion for the fourth quarter of 2025, up 4.9% year over year. Converted to USD, ASML’s third-quarter 2025 revenues were $11.31 billion, which surpassed the Zacks Consensus Estimate by 1.79%.
ASML’s Financials in Detail
Segment-wise, ASML’s Systems net sales were €7.584 billion, which contributed 78.4% to its top line, reflecting growth of 6.6% from the year-ago quarter. The Systems’ sales were mainly driven by a mix of EUV strength and advanced-node demand.
ASML Holding N.V. Price, Consensus and EPS Surprise
ASML Holding’s Services and Field segment’s net sales were pegged at €2.134 billion (22% of the top line), down 0.6% from the prior-year quarter.
ASML’s gross margin was 52.2%, which expanded 50 basis points (bps) from the year-ago quarter.
Operating expenses were €1.64 billion, up 14.4% from the year-ago quarter. As a percentage of sales, the figure increased 130 bps from the year-earlier quarter to 16.80%.
The non-GAAP operating margin of 35.3% contracted 90 bps year over year.
Balance Sheet & Cash Flow of ASML
As of Dec. 31, 2025, cash, cash equivalent balances and short-term investments were €13.32 billion, up from €5.13 billion as of Sept. 30, 2025.
Inventories were €11.43 billion in the fourth quarter compared with €11.76 billion in the third quarter of 2025. Accounts receivable decreased to €3.02 billion from €5.36 billion in the previous quarter.
The long-term debt was €2.71 billion at the end of the quarter, slightly up from the previous quarter’s €2.70 billion. ASML posted net positive cash flow of €7.79 billion.
Guidance
For the first quarter of 2026, ASML expects total net sales between €8.2 billion and €8.9 billion. In terms of USD, the projection stands between $9.8 billion and $10.6 billion. The Zacks Consensus Estimate is pegged at $10.24 billion.
The company anticipates a gross margin between 51% and 53%. Research and development costs are projected to be around €1.2 billion, while selling, general and administrative expenses are expected to be approximately €0.3 billion.
For 2025, ASML expects total net sales to be between €34 billion and €39 billion, with a gross margin between 51% and 53%.
Shares of Arista Networks have gained 27.6% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12.
Shares of Advanced Energy have gained 85.4% in the trailing six-month period. Advanced Energy is slated to report third-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 103.2% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
ASML Holding Q4 Earnings Miss Expectations, Revenues Rise Y/Y
Key Takeaways
ASML Holding (ASML - Free Report) reported fourth-quarter 2025 earnings of €7.34 per share, which increased 7.3% year over year. Converted to USD, ASML’s fourth-quarter 2025 earnings were $8.55 per share, which missed the Zacks Consensus Estimates by 5.11%.
ASML reported total net sales of €9.72 billion for the fourth quarter of 2025, up 4.9% year over year. Converted to USD, ASML’s third-quarter 2025 revenues were $11.31 billion, which surpassed the Zacks Consensus Estimate by 1.79%.
ASML’s Financials in Detail
Segment-wise, ASML’s Systems net sales were €7.584 billion, which contributed 78.4% to its top line, reflecting growth of 6.6% from the year-ago quarter. The Systems’ sales were mainly driven by a mix of EUV strength and advanced-node demand.
ASML Holding N.V. Price, Consensus and EPS Surprise
ASML Holding N.V. price-consensus-eps-surprise-chart | ASML Holding N.V. Quote
ASML Holding’s Services and Field segment’s net sales were pegged at €2.134 billion (22% of the top line), down 0.6% from the prior-year quarter.
ASML’s gross margin was 52.2%, which expanded 50 basis points (bps) from the year-ago quarter.
Operating expenses were €1.64 billion, up 14.4% from the year-ago quarter. As a percentage of sales, the figure increased 130 bps from the year-earlier quarter to 16.80%.
The non-GAAP operating margin of 35.3% contracted 90 bps year over year.
Balance Sheet & Cash Flow of ASML
As of Dec. 31, 2025, cash, cash equivalent balances and short-term investments were €13.32 billion, up from €5.13 billion as of Sept. 30, 2025.
Inventories were €11.43 billion in the fourth quarter compared with €11.76 billion in the third quarter of 2025. Accounts receivable decreased to €3.02 billion from €5.36 billion in the previous quarter.
The long-term debt was €2.71 billion at the end of the quarter, slightly up from the previous quarter’s €2.70 billion. ASML posted net positive cash flow of €7.79 billion.
Guidance
For the first quarter of 2026, ASML expects total net sales between €8.2 billion and €8.9 billion. In terms of USD, the projection stands between $9.8 billion and $10.6 billion. The Zacks Consensus Estimate is pegged at $10.24 billion.
The company anticipates a gross margin between 51% and 53%. Research and development costs are projected to be around €1.2 billion, while selling, general and administrative expenses are expected to be approximately €0.3 billion.
For 2025, ASML expects total net sales to be between €34 billion and €39 billion, with a gross margin between 51% and 53%.
ASML’s Zacks Rank & Other Stocks to Consider
Currently, ASML carries a Zacks Rank #2 (Buy).
Some other top-ranked stocks in the broader Zacks Computer and Technology sector are Amkor Technology (AMKR - Free Report) , Arista Networks (ADI - Free Report) and Advanced Energy (AEIS - Free Report) . While Amkor Technology sports a Zacks Rank #1 (Strong Buy), Arista Networks and Advanced Energy carry a Zacks Rank #2 each at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Arista Networks have gained 27.6% in the trailing six-month period. Arista Networks is set to report fourth-quarter 2025 results on Feb. 12.
Shares of Advanced Energy have gained 85.4% in the trailing six-month period. Advanced Energy is slated to report third-quarter 2025 results on Feb. 10.
Amkor Technology shares have surged 103.2% in the trailing six-month period. Amkor Technology is set to report fourth-quarter 2025 results on Feb. 9.