ASML Holding N.V.

What they do

ASML designs and manufactures advanced lithography systems used to pattern microchips, including EUV, DUV, and holistic lithography products. It also provides related software, services, and field support to help customers improve chip performance and yield. The company collaborates closely with customers and partners across the semiconductor ecosystem.

Revenue drivers

• EUV lithography systems — Extreme ultraviolet systems are ASML's flagship product line for advanced-node chipmaking, generating a significant portion of revenue.
• DUV lithography systems — Deep ultraviolet systems serve a broader range of chip applications and remain a steady revenue contributor.
• Installed base services — Recurring revenue from maintenance, upgrades, and productivity services on the installed base of systems across customers.

Recent performance

In 2025, ASML reported annual revenue of $32.67B, up from $28.26B in 2024, and net income of $9.61B, up from $7.57B. Diluted EPS rose to $24.71 from $19.24. Operating cash flow increased to $12.66B from $11.17B in 2024. Total assets at year-end were $50.57B with cash and equivalents of $12.92B and long-term debt of $2.71B.

Strategy

ASML aims to deepen customer trust by aligning its roadmap with chipmaker needs and extend technology leadership in lithography, especially through high-NA EUV. It focuses on strengthening ecosystem relationships with suppliers and research partners, driving operational excellence, and investing in cutting-edge physics and AI opportunities. The company also commits to ESG sustainability, including reducing environmental impact and fostering a diverse workforce.

Risks

• Semiconductor cyclicality — Demand for lithography systems is tied to the cyclical semiconductor market, which can cause order volatility.
• Technology execution — Developing and ramping next-generation EUV systems involves complex physics and engineering risks.
• Export controls and geopolitics — Regulatory restrictions on sales to certain geographies, like China, could limit market access and revenue.
• Supply chain concentration — ASML depends on a limited number of suppliers for critical components, including optics and lasers, which can disrupt production.

Outlook

Management highlights long-term growth opportunities driven by AI adoption, increasing chip complexity, and rising demand for advanced lithography. The company expects continued investments in R&D and capacity to support customer roadmaps, with a focus on high-NA EUV and holistic lithography solutions. ASML remains cautious about near-term macroeconomic and geopolitical uncertainties but sees secular demand for semiconductor technology.