ASML Holding Q4 Earnings Miss Expectations, Revenues Rise Y/Y

ASML Holding ASML 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, Arista Networks ADI and Advanced Energy AEIS. 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. 

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This article originally published on Zacks Investment Research (zacks.com).

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