**Bullish Points:**
1. ASML's total net sales for 2025 increased by 15.6% to €32.7 billion, driven by higher EUV and DUV immersion system sales and increased net service and field option sales.
2. Gross profit for 2025 was €17.3 billion, with a gross margin of 52.8%, up from 51.3% in 2024, indicating improved profitability.
3. Net income for 2025 was €9.6 billion, representing 29.4% of total net sales, with basic net income per ordinary share of €24.73.
4. ASML returned €8.5 billion to shareholders through dividends and share buybacks in 2025, demonstrating strong shareholder value.
5. The company expects full-year revenue for 2026 to be between €34 billion and €39 billion, with a gross margin between 51% and 53%.
6. ASML's long-term growth opportunity for 2030 is projected to achieve annual revenue between €44 billion and €60 billion, with a gross margin between 56% and 60%.
7. ASML invested €1.3 billion in Mistral AI’s Series C funding round, enhancing its product portfolio and efficiency through AI-driven insights.
8. ASML announced a new share buyback program of up to €12 billion to be executed by December 31, 2028.
9. ASML intends to declare a total dividend for 2025 of €7.50 per ordinary share, a 17.2% increase compared to 2024.
**Bearish Points:**
1. Research and development (R&D) costs increased by 9.2% to €4.7 billion, reflecting significant ongoing investments that may impact short-term profitability.
2. The decrease in prepaid expenses and deposits indicates potential challenges in managing operational costs and expansions.
3. The increase in income tax expense to €2,013.4 million in 2025, compared to €1,680.6 million in 2024, due to higher taxable income and changes in tax rates and regulations.
4. The decrease in equity method investments due to dividends received and net losses from Carl Zeiss SMT Holding GmbH & Co. KG.
5. The decrease in other intangible assets and right-of-use assets due to amortization and depreciation, which may affect future asset utilization.
6. The increase in commitments and contingencies, including legal contingencies, which may pose financial risks.
7. The increase in short-term borrowings and current portion of long-term debt, indicating reliance on debt financing for expansions and investments.
**Summary:**
ASML Holding NV demonstrated strong financial performance in 2025, with significant increases in net sales, gross profit, and net income, alongside strategic investments in AI and shareholder returns through dividends and buybacks. The company's projections for future revenue growth and margin improvements highlight its potential for long-term success. However, increased R&D costs, tax expenses, and reliance on debt financing present challenges that may impact short-term profitability. ASML's commitment to innovation and expansion, coupled with its strategic financial management, positions it well for future growth, though it must navigate operational and financial risks carefully.
For more information, you can read the original text of ASML Holding NV's financial report .
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