A：The highlights of ASML's third quarter 2025 financial results include total net sales of €7.1 billion euros, with net system sales driven by logic at 65% and memory at 35%. Mid-quarter management sales came in as guided at €2 billion, and gross margin for the quarter was within guidance at 50%. Operating expenses, including R&D andSG&A expenses, were as guided, with a tax rate of 17.8% for the quarter.

A：In the third quarter, the impact on tax was 17.8%, and ASML paid the first interim dividend of €1.6 per ordinary share. The second quarterly interim dividend of €1.6 per ordinary share was also announced and will be paid on November 6, 2025.

A：ASML announced that it has purchased shares for a total amount of around €148 million and has acquired 9 million shares under the current program for a total of €5.9 billion. ASML expects to complete the €12 billion share buyback program in full within the 2022-2025 timeframe and intends to announce a new share buyback program in January 2026.

A：For the fourth quarter of 2025, ASML expects total net sales to be between €32 billion and €34 billion euros, with installed base management sales around €2.1 billion. Q4 is expected to be a very strong quarter with a gross margin between 51 and 53%. ASML also expects RD expenses of around €1.2 billion and G&A expenses around €320 million for the full year. The company continues to expect total net sales to be around €32.5 billion with a gross margin of around 62%.

A：The market environment is expected to have a positive impact on ASML's business in 2026 due to continued investment in AI infrastructure, growing AI momentum across customers, and EUV technology adoption. However, ASML anticipates a significant decline in China total net sales in 2026 compared to the strong business in 2024 and 2025. The company expects overall 2026 EUV business to be driven by advanced DRAM and leading edge logic, while the DUV business is expected to be down compared to 2025.

A：Recent technological advancements and collaborations include the release of new EUV packaging lithography system, strategic engagement with Mistral AI for EUV, and the shipment of ICL's first EUV integration product, the X.T. 260. ASML also announced a partnership with Mistral AI for embedding AI across its portfolio to increase performance and productivity and an investment of €1.3 billion in Mistral AI's funding round. ASML's technology roadmap is shifting towards more advanced logic and era applications, with a revenue opportunity expected between €44 billion and €60 billion by 2030, supported by Ina's introduction.

A：Positive news related to AI infrastructure includes advancements and announcements that, while not immediately translating into orders, create a positive backlog of opportunities for AI moving forward.

A：The expansion of customers benefits AI opportunities as it ensures that the market capacity will be high enough to respond to the huge demand for goods related to AI infrastructure. This is a positive sign for the long-term growth of the market.

A：It is considered too early to make any comments on the impact of AI investments in 2027, as the order lumpy nature and recent strong order intake in the past two quarters indicate. There is no linearity in order arrival, so it is premature to discuss implications for 2027.

A：The transition from 14nm to 7nm nodes is not expected to lead to a drop in the number of EUV layers. In fact, as the transition continues, the number of EUV layers is expected to continue to grow, supported by discussions with customers.

A：The updated commentary for 2026 is positive and reflects the resolution of uncertainties around tariffs and clarity in customer capacity plans. This has led to an expectation of increased EUV usage next year, related to both DRAM and advanced nodes, and the potential for a more balanced market between logic and DRAM.

A：The gross margin guide for the December quarter is better than what was previously implied, with volume increases and a positive impact from the upgrade business. A slight improvement in the midpoint growth margin compared to the last quarter, despite some negative elements, contributes to this outlook.

A：While the exact number of UV tools needed for potential demand by 2030 is not specified, the focus is on the broadening of the customer base which reduces the risk of market supply limitation. However, making speculations about real capacity needs is cautioned against due to the complex relationship between customers and their actual capacity requirements.

A：The expectations for growth next year are positive, with a strong indication that UV业务 will be stronger. The company has been preparing for this growth and has worked on long-term capacity. The exit backlog is projected to be around 30 billion, even after considering the high Nana tools, which makes the growth expectations comfortably above model growth for the following year. There is a significant portion of the current backlog with maturity beyond 2026, contributing to the confidence in future growth.

A：Uncertainty in the market, particularly regarding the pull-in and push-out effects of various factors, makes it extremely challenging to make concrete projections for 2026. The healthy order intake in the backlog that is beyond 2026 does not entirely negate these uncertainties, which is why a definitive call on the growth for 2026 as a strong, high single-digit, or double-digit year cannot be made at this stage.

A：The company strives to be ready and flexible in anticipation of market swings, having learned from the experiences of 2022. They have done a lot of work on flexibility, including preparing for longer lead time items and ensuring that they have more flexibility in the face of recent announcements. The company continues to have a dialogue with customers, providing updates and being prepared for growth, which is also in light of the recent market activity. They will have a better understanding of actual results in January and will continue to monitor the market closely.

A：The company receives signals from customers and engages in a constant dialogue to understand their needs. The goal is to ensure that customers give timely heads up about their requirements so that the company can adjust its supply chain and manufacturing accordingly. This dialogue occurs on a quarterly basis and the company believes they are well-prepared due to these ongoing discussions and their ability to pivot in response to customer needs.

A：The projected revenue pattern for High K will be influenced by the current backlog, with revenue expected to be realized as the data from qualification processes confirm the maturity and performance of the product. The next wave of orders is anticipated towards the second half of the following year. While the company is working on its backlog, it's not solely waiting for orders; they are also making progress in the field. In the next 18 months, the company expects to assess the likelihood of future insertion and continue preparing for growth.

A：The significant decline in China revenue expected in 2026 is attributed to the company having previously eaten into its backlog by underserving the Chinese market. Sales were initially high as they were working through this backlog. However, the underlying perspective on the Chinese market remains as it was a year ago, which is focused on mainstream logic. The current sales level is considered to be high compared to a normalized level for the mainstream market. This is based on the company's understanding of the market and ongoing customer dialogues. Despite the recent strength in sales, the company's view on the market has not changed, hence the indication of a significant decline in revenue.

A：The new product is considered significant because it is the first product from Iml to support Ed integration, which is crucial as customers demand increased transistor density, speed, and accuracy over time.

A：The company expects quite a few customers to be eager to adopt the new technology and believes they will see a substantial benefit from it. This suggests that the business and profitability from the product could be higher than historical levels for i-line scanners.

A：Yes, the company expects an increase in gross margins due to the new product and the increased presence of EUV technology, which has a strong gross margin. However, the exact impact on gross margins will also depend on the number of tools recognized for Heine, which is expected to be dilutive to the corporate gross margin. The final expectations will also consider the mix of products and the composition of the installed base.

A：The current thinking on the installed base for next year indicates that the reputation for the installed base this year has actually gone up. The service business has developed quite nicely, and while there was more upgrade business in the first half, the second half is benefiting from an increase in the service business, which is closely tied to the development of the installed base in EUV.

A：The sustainability of the upgrade business is unclear as it showed a significant drop in the second half of the year. An update on expectations for next year will be provided in January. However, positive developments such as AI investments and more customers benefiting from EUV are anticipated to have a partial impact on 2026 and are indicators of potentially stronger bookings in future quarters.

A：Advancements with HighNA technology include the demonstration of final specifications at customers and consistent source performance matching that of LowNA technology. Unlike LowNA, where source performance was a major detractor of maturity, HighNA's source performance is identical to LowNA's, and there are no showstoppers in tool maturity. The main difference now separating HighNA from LowNA is just the platform itself.

A：Revenue from HighNA is recognized but is dilutive. The profitability will improve with volume growth as the tool has significant capability in the factory and in R&D for HighNA. However, the total cost base will only be absorbed by a limited number of tools. As for operating expenses, the outlook for the cadence of R&D expenses and the R&D burden for the business going forward is expected to be influenced by the increased volume and the availability of the platform.

A：The expected impact of high volume manufacturing in the upcoming timeframe is that meaningful numbers will be produced, which will lead to improved gross margin profiles. Although high costs are anticipated due to the long time required to achieve significant volume for meaningful contribution, the dilutive nature of these costs will be limited once meaningful numbers are reached.

A：The current gross margin profile is very low, described as 'high in a' which stands for high single digits, but it is still loss-making. Despite having high-Na up and running, there is still a formidable roadmap ahead with significant breakthroughs expected in terms of lower Na, productivity of tools, and imaging quality. The company is looking to increase efficiency and extract more value from the organization, aiming to manage both SGA (sales, general, and administrative expenses) and R&D expenses effectively.

A：The impact of AI chips on ASML is that they are driving more advanced logic and DRAM, although the extent to which this is realized is still to be seen as it is measured in Ed months which is a fraction of a node in terms of timing. With the value that AI chips can extract being justified by more expensive nodes, the industry is changing. The trend is expected to continue, with the 2 nm node being the first proof. The larger customer base for these products is also seen as a potential motivation to move faster on advanced nodes. ASML is closely watching this trend and its implications.

A：ASML acknowledges the increased concentration of customers, especially in the logic sector, with one customer being particularly active in leading edge investment. This concentration increases volatility in booking backlogs and quarterly revenue. However, the visibility into future revenues is not entirely compromised, and concerns around pricing power are not a major issue as the market size is dictated by what the customer can deliver. Supply limitations are a more significant concern than having only one customer.

A：Working capital intensity is increasing due to factors such as long installation times for systems related to Ina and down payments associated with order intake. ASML acknowledges that reducing cycle time is critical in minimizing working capital and is actively working on this front. However, significant progress requires meaningful volumes. The current working capital levels are considered reasonable for the business as it exists today, and further reductions in cycle time will be the biggest driver of improving working capital levels.