The global race to build artificial intelligence infrastructure has delivered a windfall for ASML Holding NV. The Dutch semiconductor equipment giant, a critical enabler for advanced chip production, reported a staggering influx of new orders, powered overwhelmingly by demand for next-generation AI processors. However, in a move highlighting the complex dynamics of scaling a high-tech monopoly, the company also announced significant job cuts despite its soaring financial performance.
Unprecedented Demand and Financial Performance
ASML’s fourth-quarter results for 2025 shattered market expectations. Revenue climbed to €9.7 billion, but the standout figure was the record-breaking order intake of €13.2 billion. More than half of this total, approximately €7.4 billion, was attributed to its most advanced and complex machinery: Extreme Ultraviolet (EUV) lithography systems. This surge underscores the immense, ongoing investment by chipmakers in cutting-edge manufacturing capacity.
For the full 2025 fiscal year, the company posted a net profit of €9.6 billion, a substantial jump from the prior year’s €7.6 billion. The value of its order backlog, a key indicator of future revenue, reached a formidable €38.8 billion by year-end.
Revised Outlook Anchored in AI Expansion
Management confidence extends well into 2026, leading to an upward revision of financial guidance. ASML now anticipates revenue between €34 billion and €39 billion for the year, with a gross margin potentially reaching 53%. This midpoint projection implies growth of roughly 12%, exceeding previous analyst estimates.
Chief Executive Christophe Fouquet directly linked this optimistic forecast to the AI boom. He noted that customers have grown significantly more confident in the market outlook, viewing the need for AI infrastructure as a durable, long-term growth driver rather than a transient trend.
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Organizational Restructuring and Job Reductions
Paradoxically, against this backdrop of record orders and raised guidance, ASML unveiled plans to reduce its workforce. The company intends to eliminate around 1,700 positions, equating to about 3.8% of its total staff. The cuts are expected to primarily affect leadership and managerial roles in the Netherlands and the United States.
According to the firm, this strategic restructuring aims to create a more efficient organization. The goal is to allow engineers to refocus on core product development, freeing them from increasingly complex internal processes. The company stated the decision was a direct response to feedback from its technical teams.
Shareholder Returns Reflect Robust Health
Investors are set to benefit directly from the strong balance sheet and future prospects. ASML announced a new share buyback program of up to €12 billion, scheduled to run through the end of 2028. Furthermore, the total dividend for 2025 will be increased by 17% to €7.50 per share. An interim dividend of €1.60 per share is scheduled for payment on February 18, 2026.
Looking ahead, management forecasts first-quarter 2026 revenue in the range of €8.2 billion to €8.9 billion. The long-term expansion trajectory remains firmly intact: bolstered by its indispensable role in producing high-end chips for industry leaders like TSMC, Samsung, and Intel, ASML is targeting revenue of up to €60 billion by 2030.
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