Overview
ASML Holding NV saw its shares climb as the company disclosed a record level of orders and offered a constructive view for 2026 revenue. The semiconductor equipment maker traded at $1,429.68, valuing the company at $550.34 billion, and was trading close to its 52-week peak of $1,473.59.
Orders and product mix
The company recorded its largest-ever order intake at C13.1 billion, a 144% increase quarter-over-quarter that beat consensus by 89%. Within that total, extreme ultraviolet (EUV) system orders amounted to C7.4 billion, up 105% from the prior quarter. Orders tied to foundry and logic customers rose 158% quarter-over-quarter, while memory-related bookings increased 128% from the preceding quarter.
Regional sales composition
System sales were led by China, which accounted for 36% of system sales and rose 17% quarter-over-quarter. The United States made up 17% of system sales and increased by 287% quarter-over-quarter. Taiwan represented 13% of system sales and fell 41% quarter-over-quarter. Japan accounted for 10% of system sales and surged 1266% quarter-over-quarter. The company anticipates China E2 80 99s share of revenue to decrease to roughly 20% by 2026.
Quarterly results and profit metrics
For the December quarter ASML reported revenue of C9.7 billion, modestly above consensus. Gross margins exceeded expectations by 30 basis points. Diluted earnings per share were C7.34, missing estimates by C0.24, a shortfall management attributed to higher operating expenses which were 775 basis points above consensus. Over the last twelve months the company maintained a gross profit margin of 52.71% and delivered a return on equity of 54%.
Outlook
ASML provided a March-quarter revenue midpoint of C8.50 billion, which it said is 560 basis points above street estimates. For calendar 2026 the company projected revenue in a range between C34 billion and C39 billion and expects gross margins of 51% to 53%. Management signaled meaningful expansion in EUV revenue, while non-EUV revenue is expected to remain flat.
Market reaction and valuation context
Following the announcements, Evercore ISI kept an Outperform rating and set a EUR1,300.00 price target. Other brokerages also stayed constructive: Wolfe Research reiterated an Outperform with a EUR1,400.00 target; JPMorgan maintained an Overweight rating citing the size of orders; and BofA Securities reaffirmed a Buy with a EUR1,454.00 target.
An external valuation assessment flagged the stock as appearing overvalued according to a Fair Value analysis, noting a price-to-earnings ratio of 49.8. That same assessment identified 19 additional investment considerations related to valuation multiples and financial-condition metrics, and assigned an overall financial health score of 3.22, characterized as "GREAT." Year-to-date returns stood at 35.96% and the trailing 12-month return was 114.59%.
Additional context
The company disclosed fourth-quarter net revenue of C9.7 billion, a 5% increase year-over-year and a 29% rise versus the prior quarter, slightly above consensus of C9.6 billion. Full-year revenue increased 16%, and ASML expects calendar-year 2026 revenue to grow about 12%, with the midpoint of guidance at EUR36.5 billion.
Implications for markets and sectors
The results and guidance touch multiple parts of the equity market and semiconductor supply chain. Strong EUV demand would influence capital equipment suppliers and foundry and logic chipmakers, while regional order patterns could affect trade-related flows and end-market exposure for firms with concentrated China or U.S. revenue.
What remains uncertain
Although bookings and guidance were robust, the company noted elevated operating expenses in the quarter that reduced EPS versus consensus. Additionally, regional revenue mix expectations, especially the projected decline in China contribution to about 20% by 2026, signal ongoing shifts that could change customer-level exposure and timing for deliveries.
Bottom line
ASML reported record orders and provided a 2026 revenue range that is above consensus midpoints, prompting continued analyst support. At the same time, elevated operating expenses and valuation metrics will draw investor scrutiny as the company executes on its EUV growth pathway and on shifting regional revenue dynamics.