ASML raises 2026 outlook for record AI chip orders, plans 1,700 job cuts
Q4 bookings exceed expectations due to demand for AI chips
Plans to lay off 1,700 people, or 3.8% of employees, in the Netherlands and the United States
Increased sales forecast for 2026 due to increase in AI-related investment
Eindhoven, Netherlands, Jan. 28 (Reuters) – Giant chip equipment maker ASML (ASML.AS)opens a new tab on Wednesday reported record orders in the fourth quarter, boosting its outlook for 2026 as demand surged from AI chip makers including: Nvidia(NVDA.O)opens a new tabDespite cutting back on management positions to focus on engineering.
The Dutch company’s orders exceeded expectations as demand for semiconductor chips increases as the global chip market increases production capacity in preparation for the rollout of AI and data centers. precision machinery In ASML, this governs the printing process for AI chips.
ASML’s fourth-quarter orders, the industry’s most-watched metric, jumped to a record 13.2 billion euros ($15.8 billion) from 7.1 billion euros a year ago. The booking exceeded Visible Alpha analysts’ forecast of 6.32 billion euros.
Orders increase due to increased production capacity of major clients
“Micron has been announcing breakthrough products almost every week for the past few weeks, which basically translates directly into shipments,” he said.
ASML also announced 1,700 job cuts, about 3.8% of its staff, in a broader plan over the coming months to cut 3,000 management jobs and hire engineers to focus on innovation and rein in bureaucracy.
“We want to once again really strengthen our engineering capabilities, our innovation engine,” Fouquet said. “Our engineers told us that their organizations have become so complex that they don’t have as much time to innovate anymore.”
Shares in ASML, Europe’s largest company by market capitalization, were up 6% as of midday, after rising as much as 7.5% earlier. The stock is up about 40% so far this year.
ASML has a monopoly on Europe’s most valuable companies
“Going out with a bang” as quarterly data to be deleted
ASML plans to stop publishing quarterly order data, despite it being the industry’s most-watched metric, and claims this is the reason. Unnecessary Stock volatility.
“This will be the last time ASML will report on its quarterly order status, but we believe the company will continue to thrive,” said Mark Hesselink, an analyst at ING.
On August 20, 2020, one of two trainees learns how to build and operate an EUV machine at ASML Holding’s training center in Tainan, Taiwan. Reuters/Ann Wang/File photo
[1/2]Trainees learn how to build and operate an EUV machine at ASML Holding’s training center in Tainan, Taiwan, on August 20, 2020. Reuters/An Wang/File photo Purchase a license rightopens a new tab
ASML raised its revenue outlook for 2026 to 34 billion to 39 billion euros, higher than analysts’ expectations of 35 billion euros, citing AI-related demand, according to LSEG data. that was before forecast Sales are expected to remain flat or increase to exceed 32.7 billion euros in 2025.
The company, the sole manufacturer of extreme ultraviolet (EUV) lithography equipment used to print the world’s most advanced chips, reported net profit of 9.6 billion euros in 2025, up 26.3% from 7.6 billion euros in the same period last year, on annual sales of 15.5% year-on-year to 32.7 billion euros.
ASML’s revenue increased from 4.5 billion euros in 2010 to 32.7 billion euros in 2025.
Demand for AI chips soars, orders exceed expectations
“Overall, Q4 orders and outlook for 2026 are positive, driven by AI demand for EUV in both logic and DRAM.” OR memory Mizuho analyst Kevin Wang said in an email.
ASML also announced that it will buy back shares worth 12 billion euros by 2028.
China sales remained flat at 27% of system sales in the second quarter, despite ASML’s previous forecast showing that China sales would decline to 20% of system sales.
Maintaining long-term revenue guidance through 2030
Chief Executive Officer Fouquet said ASML maintained its long-term outlook through 2030, expecting sales of 44 billion to 60 billion euros and gross profit margins of 56 to 60 percent in 2030.
China, the world biggest buyeropens a new tab Chip manufacturing equipment share will remain ASML’s single largest market in 2025, accounting for 33% of sales, down from 41% in 2024. Dassen predicts it will fall further to 20% in 2026.
U.S.-led export restrictions have prevented Chinese chipmakers from purchasing ASML’s cutting-edge EUV tools or Nvidia’s top-of-the-line chips.
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(1 dollar = 0.8339 euro)
Reporting by Toby Sterling in Amsterdam and Nathan Vifrin in Gdańsk. Editing: Matt Scafham and Bernadette Baum
