Netherlands' ASML beats Q4 revenue expectations, sets new share buyback plan

Overview

• Netherlands semiconductor supplier's Q4 revenue beat analyst expectations

• Q4 net income missed analyst estimates

• Company announced a new share buyback program of up to EUR 12 bln

Outlook

• ASML expects Q1 2026 net sales between €8.2 bln and €8.9 bln

• Company forecasts 2026 net sales between €34 bln and €39 bln

• ASML expects Q1 and FY 2026 gross margins of 51-53%

Result Drivers

• EUV SALES - Significant increase in EUV sales contributed to strong Q4 results

• AI DEMAND - Robust AI-related demand improved medium-term market outlook, boosting order intake

• ENGINEERING FOCUS - Streamlining Technology and IT organizations to enhance innovation and support growth

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 24 "strong buy" or "buy", 8 "hold" and 3 "sell" or "strong sell"

• The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"

• Wall Street's median 12-month price target for ASML Holding NV is €1,214.00, about 0.3% below its January 27 closing price of €1,217.60

• The stock recently traded at 45 times the next 12-month earnings vs. a P/E of 33 three months ago

Press Release: ID:nGNEc3PDN

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)