ASML posts record profits, but also wave of layoffs
Record profits thanks to AI at ASML, but behind the scenes a major reorganization is underway
Published on January 28, 2026
© Bart van Overbeeke
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Chip machine manufacturer ASML has had another record year. The Veldhoven-based tech giant generated €32.7 billion in revenue in 2025, resulting in a profit of €9.6 billion. Driven by continued demand for AI chips, ASML expects strong growth to continue in 2026. However, the company has also announced a wave of redundancies.
Two machines crucial for the latest generation of chips
ASML ended 2025 with an exceptionally strong fourth quarter. Turnover amounted to €9.7 billion, partly thanks to the delivery of two so-called High NA EUV machines, which are crucial for the latest generation of chips. The profit margin remained high at 52.2%. Over the year as a whole, the margin even rose to 52.8%, a level that few industrial companies achieve.
Solid buffer for the coming years
The order intake is particularly striking. In the fourth quarter, ASML booked €13.2 billion in new orders, of which more than half were for EUV machines. This brought the order book to almost €39 billion, providing a solid buffer for the coming years. According to CEO Christophe Fouquet, this is because customers have become “significantly more positive” about the medium term, mainly due to the continuing investment drive around artificial intelligence.
2026: strong revenue expected
This optimistic outlook translates into strong prospects. For 2026, ASML expects revenue of between €34 billion and €39 billion, again with margins above 50 percent. At the same time, the company is announcing a new share buyback program worth €12 billion and increasing its dividend by 17 percent.
Focus on innovation
Internally, ASML is implementing changes. In order to maintain growth, the company wants to sharpen its focus on engineering and innovation, including by streamlining its technology and IT departments.
1,700 jobs to be lost
However, ASML plans to make drastic cuts in the management structure surrounding its research and development departments. This is expected to result in the loss of around 1,700 jobs. The move was announced on the same day that the Veldhoven-based chip machine manufacturer released its record figures.
According to CFO Roger Dassen, the measure is intended to make the organisation more agile. Due to increased bureaucracy, engineers now spend too much time on consultations and processes, while that time is needed for developing new technology.