ASML reported record bookings of 13.2 billion euros in Q4 2025, exceeding analyst expectations of 6.32 billion euros. The company announced a 12-billion-euro share buyback plan and expects net sales in the current quarter to range between 8.2 billion and 8.9 billion euros. Total sales for 2026 are forecasted to be between 34 billion and 39 billion euros, above analyst expectations of 35.1 billion.

ASML is benefiting from AI demand, with shares up nearly 30% this year. Taiwan Semiconductor Manufacturing Co. (TSMC) posted record profits in Q4, indicating continued demand for AI chips. A shortage of memory semiconductors is causing prices to rise, with some expecting the shortage to continue through 2027. ASML’s customers are investing in capacity expansion due to sustained demand for AI.

ASML’s CFO noted that customers are positive about medium-term market prospects, driven by sustainable demand for AI. ASML is expecting an increase in sales to memory makers like Samsung and SK Hynix, with Barclays forecasting SK Hynix to purchase 12 extreme ultraviolet lithography machines in 2026. Customers are investing in capacity expansion to meet growing demand for AI.

Investors are monitoring China, where ASML cannot ship its most advanced machines due to export restrictions. ASML expects a significant decline in sales in China in 2026 compared to previous years. China accounted for 33% of ASML’s net system sales in 2025, but the company expects China revenue to make up 20% of total sales in 2026.

Read more at CNBC: ASML Q4 2025 earnings report