ASML Reports Record AI Chip Orders, Boosts 2026 Forecast, Reduces Workforce
ASML has announced remarkable fourth-quarter results driven by soaring demand for AI chips. The company recorded orders worth 13.2 billion euros ($15.8 billion), a substantial increase from 7.1 billion euros in the same period last year. This uptick surpassed analyst predictions of 6.32 billion euros, underscoring the robust growth in the AI sector.
Significant Job Cuts Amid Growth
Despite the surge in bookings, ASML revealed it would reduce its workforce by 1,700 positions, representing 3.8% of its total staff. This decision primarily affects leadership roles within research and development departments located in the Netherlands and the United States. CFO Roger Dassen indicated that these cuts are essential for achieving greater technical agility.
Enhanced 2026 Sales Outlook
ASML has raised its sales forecast for 2026, now estimating revenues between 34 billion and 39 billion euros. This new guidance surpasses prior expectations of 35 billion euros and indicates a strong recovery from the previous year. The company’s earlier prediction for 2025 had been much lower, at flat-to-higher sales of 32.7 billion euros.
AI Demand Driving Growth
Chief Executive Christophe Fouquet noted customers have become increasingly optimistic about the medium-term market landscape. This optimism is largely fueled by sustained demand for AI-related technologies, particularly in logic and DRAM chips. Major customers, including TSMC, Samsung, and Micron, are ramping up investment in response to this demand.
Record Performance and Future Projections
ASML reported a 26.3% increase in net profit for 2025, reaching 9.6 billion euros, compared to 7.6 billion euros the previous year. The company’s stock reflected positive sentiment, rising by 4.2% during morning trading, following an earlier peak of 7.5%. Analysts suggest that the current quarter’s order intake might be the last publicly reported, as ASML plans to discontinue this practice.
Share Buyback Program
In conjunction with its strategic adjustments, ASML also announced a share buyback initiative worth 12 billion euros, scheduled through 2028. This move aims to enhance shareholder value amidst changes within the company.
Market Conditions and Challenges
The backdrop of ASML’s robust orders follows ongoing challenges with U.S. export restrictions, which limit Chinese chipmakers from acquiring the company’s most advanced EUV tools. China remains ASML’s largest market, accounting for 33% of sales in 2025, but projections suggest this figure could decline significantly in the coming years.
In summary, while ASML is navigating a complex landscape marked by job reductions, the company is capitalizing on a strong demand for AI chips, enhancing its sales outlook and shareholder return strategies.
