ASML Holding NV Q3 FY2025 earnings call

• Positive market news in recent months reducing uncertainty, with strong commitment to AI driving investment in advanced logic and DRAM. AI benefiting a larger customer base. - Good progress with EUV adoption in DRAM and advanced logic. - Collaboration with Mistral AI: strategic partnership due to Mistral's business-to-business approach and quality of large language model, aiding in software content for products and product development speed. - Strong execution of technology roadmap: EUV progress in reducing cost for advanced nodes, INA with over 300,000 wafers run at customer, SK Enix starting installation of first 5,200 in production fab for Dera, and shipment of first advanced packaging product (XT260) with 4x productivity compared to existing product. - 3D integration seen as a new opportunity with transferable technology from Holistic Lithography, and interest from customers in related tools. - Long-term opportunities include AI driving advanced semiconductor applications, 3D integration as a new opportunity, and AI creating value in product moving forward, with expected 2030 revenue between €44 billion and €60 billion and gross margin 56-60%.

Net sales for Q3 2025 were €7.5 billion, including recognition of one High NA system and €2 billion for installed base revenue. Gross margin was 51.6%. Net income was €2.1 billion. Net bookings for the quarter were €5.4 billion, with €3.6 billion for EV. Revenue contribution details aren't explicitly broken down by product segment in terms of percentage here, but net sales, gross margin, net income, and net bookings are key figures.

• Q4 2025 revenue guidance: €9.2 billion to €9.8 billion, with installed base revenue of approximately €2.1 billion and gross margin between 51-53%. - Full year 2025 net sales expected around €32.5 billion, gross margin around 52%. The midpoint of Q4 guidance leads to slightly above 52% for full year.

• Lower demand from Chinese customers in 2026 compared to 2024 and 2025, which is expected to negatively impact Deep UV business.

Q: Can you give a summary of Q3 2025 results?

A: Net sales came in at €7.5 billion, including recognition of one High NA system and €2 billion for installed base revenue. Gross margin was 51.6%. Net income was €2.1 billion and net bookings were €5.4 billion including €3.6 billion for EV.

Q: Give guidance on Q4 2025 and full year 2025?

A: Q4 2025 revenue between €9.2 billion and €9.8 billion, installed base revenue ~€2.1 billion, gross margin 51-53%. Full year 2025 net sales around €32.5 billion, gross margin around 52%.

Q: View on the market at the moment?

A: Positive news reducing uncertainty, strong AI commitment, EUV adoption progress, but Chinese customer demand to be significantly lower in 2026.

Q: What does that mean for 2026?

A: Impact partially effective in 2026, net sales not expected below 2025, product mix dynamics favor UV, lower Deep UV business in China, details in January call.

Q: Thoughts on collaboration with Mistral AI?

A: Strategic partnership due to Mistral's business approach and LLM quality, software content importance in products, aiding product performance and development speed, and was lead investor in Series C funding round with 11% share and seat on strategic committee.

Q: Highlights over last quarter in terms of roadmap?

A: Strong execution of roadmap, EUV progress at SPIE Semicon, INA with over 300,000 wafers run, SK Enix installation, and shipment of advanced packaging product XT260.

Q: Rationale and opportunities for 3D integration?

A: 3D integration as way to drive Moore's Law, transferable technology from Holistic Lithography, interest from customers in related tools.

Q: Long-term opportunities?

A: AI driving advanced semiconductor applications, 3D integration as new opportunity, AI creating value in product, expected 2030 revenue €44-€60 billion and gross margin 56-60%.