Revenue growth accelerated to +55.2% in 2026Q3 with gross margin at a peak 57.4% and operating margin at 44.4%, reflecting operating leverage as R&D plus SG&A grew only 21% while operating income expanded 3.7x since 2024Q1 — a combination that warrants investigation given ASML's simultaneous peak in growth and margins alongside skipped forward guidance.
ASML Holding N.V. (ASML) annual income statement — 30-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 37.66B | 32.67B | 28.26B | 27.56B | 21.17B | 18.61B | 13.98B | 11.82B | 10.94B | 8.96B | 6.88B | 6.29B | 5.86B | 5.25B | 4.73B | 5.65B | 4.51B | 1.6B | 2.95B | 3.77B | 3.58B | 2.53B | 2.46B | 1.54B | 1.96B | 1.85B | 2.16B | 1.2B | 774.64M | 808.45M | 619.4M |
| Revenue Growth % | 17.1% | 15.58% | 2.56% | 30.16% | 13.77% | 33.14% | 18.26% | 8% | 22.11% | 30.36% | 9.35% | 7.36% | 11.65% | 10.86% | -16.27% | 25.36% | 182.44% | -45.96% | -21.74% | 5.37% | 41.74% | 2.58% | 59.97% | -21.32% | 5.94% | -14.5% | 80.44% | 54.59% | -4.18% | 30.52% | 38.77% |
| Cost of Goods Sold | 17.37B | 15.41B | 13.77B | 13.42B | 10.47B | 8.8B | 7.18B | 6.54B | 5.91B | 4.94B | 3.73B | 3.39B | 3.26B | 3.07B | 2.73B | 3.2B | 2.55B | 1.14B | 1.94B | 2.22B | 2.13B | 1.55B | 1.56B | 1.17B | 1.49B | 1.8B | 1.21B | 755.48M | 444.92M | 452.91M | 361.24M |
| COGS % of Revenue | - | 47.17% | 48.72% | 48.71% | 49.46% | 47.29% | 51.37% | 55.33% | 54.05% | 55.15% | 54.25% | 53.94% | 55.67% | 58.49% | 57.62% | 56.66% | 56.63% | 71.28% | 65.62% | 58.88% | 59.41% | 61.48% | 63.27% | 76.1% | 76.13% | 97.19% | 55.81% | 63.09% | 57.44% | 56.02% | 58.32% |
| Gross Profit | 20.29B | 17.26B | 14.49B | 14.14B | 10.7B | 9.81B | 6.8B | 5.28B | 5.03B | 4.02B | 3.15B | 2.9B | 2.6B | 2.18B | 2.01B | 2.45B | 1.96B | 458.39M | 1.02B | 1.55B | 1.45B | 973.45M | 904.97M | 368.14M | 467.29M | 51.95M | 954.87M | 442.04M | 329.72M | 355.55M | 258.15M |
| Gross Margin % | 53.88% | 52.83% | 51.28% | 51.29% | 50.54% | 52.71% | 48.63% | 44.67% | 45.95% | 44.85% | 45.75% | 46.06% | 44.33% | 41.51% | 42.38% | 43.34% | 43.37% | 28.72% | 34.38% | 41.12% | 40.59% | 38.52% | 36.73% | 23.9% | 23.87% | 2.81% | 44.19% | 36.91% | 42.56% | 43.98% | 41.68% |
| Gross Profit Growth % | - | 19.09% | 2.52% | 32.11% | 9.08% | 44.31% | 28.74% | 4.98% | 25.1% | 27.82% | 8.62% | 11.53% | 19.25% | 8.58% | -18.13% | 25.28% | 326.53% | -54.86% | -34.57% | 6.75% | 49.36% | 7.57% | 145.82% | -21.22% | 799.56% | -94.56% | 116.02% | 34.06% | -7.26% | 37.73% | 52.05% |
| Operating Expenses | 6.06B | 5.96B | 5.47B | 5.09B | 4.2B | 3.06B | 2.75B | 2.49B | 2.06B | 1.58B | 1.39B | 1.33B | 1.31B | 1.13B | 848.48M | 808.17M | 704.47M | 621.52M | 728.47M | 736.12M | 591.37M | 524.68M | 526.34M | 522.9M | 561.28M | 746.77M | 466.29M | 356.67M | 241.47M | 151.36M | 105.74M |
| OpEx % of Revenue | - | 18.23% | 19.35% | 18.48% | 19.83% | 16.44% | 19.64% | 21.06% | 18.86% | 17.63% | 20.17% | 21.16% | 22.44% | 21.53% | 17.93% | 14.3% | 15.63% | 38.94% | 24.66% | 19.5% | 16.51% | 20.76% | 21.36% | 33.95% | 28.67% | 40.42% | 21.58% | 29.78% | 31.17% | 18.72% | 17.07% |
| Selling, General & Admin | 1.33B | 1.26B | 1.17B | 1.11B | 945.9M | 725.6M | 544.9M | 520.5M | 488M | 416.6M | 374.8M | 345.7M | 321.11M | 311.74M | 259.3M | 217.9M | 181.04M | 154.76M | 212.34M | 226.02M | 204.8M | 201.05M | 201.48M | 212.24M | 263.07M | 280.48M | 185.56M | 140.22M | 93.62M | 56.91M | 96.26M |
| SG&A % of Revenue | - | 3.85% | 4.12% | 4.04% | 4.47% | 3.9% | 3.9% | 4.4% | 4.46% | 4.65% | 5.45% | 5.5% | 5.48% | 5.94% | 5.48% | 3.86% | 4.02% | 9.7% | 7.19% | 5.99% | 5.72% | 7.96% | 8.18% | 13.78% | 13.44% | 15.18% | 8.59% | 11.71% | 12.09% | 7.04% | 15.54% |
| Research & Development | 4.73B | 4.7B | 4.3B | 3.98B | 3.25B | 2.55B | 2.2B | 1.97B | 1.58B | 1.26B | 1.11B | 1.07B | 1.07B | 882.03M | 589.18M | 590.27M | 523.43M | 466.76M | 516.13M | 511.31M | 413.71M | 323.63M | 330.71M | 286.22M | 298.21M | 408.93M | 214.7M | 173.91M | 114M | 78.64M | 0 |
| R&D % of Revenue | - | 14.38% | 15.23% | 14.44% | 15.37% | 13.69% | 15.74% | 16.65% | 14.4% | 14.05% | 16.08% | 16.99% | 18.34% | 16.82% | 12.45% | 10.45% | 11.61% | 29.24% | 17.47% | 13.55% | 11.55% | 12.81% | 13.42% | 18.59% | 15.24% | 22.13% | 9.94% | 14.52% | 14.72% | 9.73% | - |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | -213.7M | 0 | 0 | 0 | -95.8M | -93.8M | -83.2M | -81.01M | -64.46M | 0 | 0 | 0 | 0 | 0 | -1.22M | -27.14M | -844 | -5.86M | 24.44M | 0 | 57.36M | 66.03M | 42.53M | 33.85M | 15.82M | 9.48M |
| Operating Income | 14.23B | 11.3B | 9.02B | 9.04B | 6.5B | 6.75B | 4.05B | 2.79B | 2.97B | 2.44B | 1.76B | 1.57B | 1.28B | 1.05B | 1.16B | 1.64B | 1.25B | -163.13M | 287.05M | 815.99M | 862.61M | 448.78M | 378.63M | -154.76M | -93.98M | -694.83M | 488.58M | 85.37M | 88.25M | 204.18M | 152.42M |
| Operating Margin % | 37.78% | 34.6% | 31.92% | 32.81% | 30.7% | 36.27% | 28.98% | 23.61% | 27.1% | 27.22% | 25.58% | 24.89% | 21.9% | 19.98% | 24.45% | 29.04% | 27.74% | -10.22% | 9.72% | 21.62% | 24.08% | 17.76% | 15.37% | -10.05% | -4.8% | -37.61% | 22.61% | 7.13% | 11.39% | 25.26% | 24.61% |
| Operating Income Growth % | - | 25.26% | -0.22% | 39.1% | -3.69% | 66.61% | 45.17% | -5.88% | 21.54% | 38.74% | 12.36% | 22.06% | 22.36% | -9.41% | -29.52% | 31.22% | 866.71% | -156.83% | -64.82% | -5.41% | 92.21% | 18.53% | 344.66% | -64.67% | 86.47% | -242.21% | 472.34% | -3.27% | -56.78% | 33.96% | 51.03% |
| EBITDA | 15.28B | 12.33B | 9.94B | 9.78B | 7.08B | 7.22B | 4.54B | 3.24B | 3.39B | 2.86B | 2.12B | 1.86B | 1.54B | 1.28B | 1.34B | 1.81B | 1.4B | -21.49M | 406.24M | 942.53M | 949.7M | 539.24M | 468.78M | -10.21M | 71.94M | -535.75M | 554.62M | 127.9M | 122.1M | 220M | 161.9M |
| EBITDA Margin % | 40.58% | 37.74% | 35.17% | 35.5% | 33.46% | 38.8% | 32.49% | 27.41% | 30.96% | 31.88% | 30.77% | 29.61% | 26.24% | 24.34% | 28.39% | 31.97% | 31.1% | -1.35% | 13.75% | 24.97% | 26.51% | 21.34% | 19.03% | -0.66% | 3.68% | -29% | 25.67% | 10.68% | 15.76% | 27.21% | 26.14% |
| EBITDA Growth % | 25.55% | 24% | 1.63% | 38.08% | -1.89% | 58.97% | 40.22% | -4.39% | 18.58% | 35.07% | 13.61% | 21.15% | 20.38% | -4.96% | -25.63% | 28.83% | 6623.42% | -105.29% | -56.9% | -0.76% | 76.12% | 15.03% | 4689.78% | -114.2% | 113.43% | -196.6% | 333.63% | 4.75% | -44.5% | 35.89% | 50.75% |
| D&A (Non-Cash Add-back) | 1.05B | 1.03B | 918.6M | 739.8M | 583.6M | 471M | 490.8M | 448.5M | 422.7M | 417.5M | 356.9M | 296.9M | 254.64M | 228.78M | 186.62M | 165.19M | 151.44M | 141.63M | 119.19M | 126.54M | 87.09M | 90.46M | 90.15M | 144.55M | 165.93M | 159.07M | 66.03M | 42.53M | 33.85M | 15.82M | 9.48M |
| EBIT | 14.7B | 11.52B | 9.21B | 9.24B | 6.52B | 6.76B | 4.06B | 2.8B | 2.97B | 2.34B | 1.66B | 1.48B | 1.2B | 983.49M | 1.16B | 1.64B | 1.27B | -120.36M | 359.54M | 815.99M | 862.61M | 448.78M | 372.78M | -130.32M | -93.98M | -637.47M | 488.58M | 85.37M | 88.25M | 204.18M | 152.42M |
| Net Interest Income | 98.8M | 104.7M | 29.98M | 41.06M | -43.56M | -46.49M | -32.48M | -24.64M | -29.23M | -48.47M | -22.72M | -16.81M | -8.81M | -24.47M | -6.04M | 7.96M | -8.16M | -8.17M | 22.87M | 31.36M | -827.51K | -14.78M | -14.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 98.8M | 104.7M | 190.53M | 190.49M | 15.82M | 10.42M | 7.82M | 11.44M | 13.94M | 6.94M | 17.33M | 11.09M | 14.86M | 9.2M | 16.16M | 44.18M | 15.09M | 41.46M | 73.38M | 73.29M | 48.09M | 40.31M | 25.58M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 0 | 0 | 160.55M | 149.42M | 59.38M | 56.92M | 40.29M | 36.08M | 43.17M | 55.41M | 40.06M | 27.9M | 23.67M | 33.67M | 22.2M | 36.21M | 23.24M | 49.62M | 50.5M | 41.92M | 48.92M | 55.09M | 40.27M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | 983.8M | 321.4M | 229.6M | 232.5M | 93.4M | 154.5M | 53.7M | -6.8M | -22.1M | -67M | 33.7M | -16.5M | -8.6M | -24.47M | -6.2M | 7.42M | -8.18M | -8.43M | 22.6M | 33.5M | -853.92K | -14.08M | -16.06M | -29.1M | -36.76M | -3.61M | 2.12M | 32.99M | 1.19M | 14.64M | 3.62M |
| Pretax Income | 15.21B | 11.62B | 9.25B | 9.27B | 6.59B | 6.9B | 4.11B | 2.78B | 2.94B | 2.37B | 1.79B | 1.55B | 1.27B | 1.02B | 1.15B | 1.65B | 1.24B | -171.55M | 309.64M | 849.49M | 861.76M | 434.69M | 362.57M | -183.86M | -130.74M | -698.43M | 490.7M | 118.36M | 89.44M | 218.82M | 156.03M |
| Pretax Margin % | 40.39% | 35.58% | 32.74% | 33.66% | 31.14% | 37.1% | 29.37% | 23.55% | 26.89% | 26.47% | 26.07% | 24.63% | 21.75% | 19.51% | 24.32% | 29.17% | 27.56% | -10.75% | 10.48% | 22.51% | 24.06% | 17.2% | 14.72% | -11.94% | -6.68% | -37.8% | 22.71% | 9.88% | 11.55% | 27.07% | 25.19% |
| Income Tax | 2.53B | 2.01B | 1.68B | 1.44B | 969.9M | 1.02B | 551.5M | 191.7M | 351.6M | 306M | 234.4M | 161.4M | 77M | 7.99M | 4.26M | 181.68M | 220.7M | -20.63M | -12.73M | 177.43M | 243.21M | 123.47M | 127.29M | -59.57M | -42.75M | -218.61M | 146.32M | 37.57M | 27.8M | 71.27M | 54.72M |
| Effective Tax Rate % | 16.65% | 17.32% | 18.16% | 15.48% | 14.71% | 14.79% | 13.43% | 6.89% | 11.95% | 12.9% | 13.08% | 10.42% | 6.05% | 0.78% | 0.37% | 11.02% | 17.76% | 12.02% | -4.11% | 20.89% | 28.22% | 28.4% | 35.11% | 32.4% | 32.7% | 31.3% | 29.82% | 31.74% | 31.08% | 32.57% | 35.07% |
| Net Income | 12.68B | 9.61B | 7.57B | 7.84B | 5.62B | 5.88B | 3.55B | 2.59B | 2.59B | 2.07B | 1.56B | 1.39B | 1.2B | 1.02B | 1.15B | 1.47B | 1.02B | -150.93M | 322.37M | 672.06M | 618.55M | 311.23M | 235.29M | -159.94M | -207.68M | -479.83M | 345.44M | 80.8M | 61.65M | 147.55M | 101.32M |
| Net Margin % | 33.67% | 29.42% | 26.79% | 28.44% | 26.56% | 31.61% | 25.42% | 21.93% | 23.68% | 23.06% | 22.66% | 22.06% | 20.43% | 19.36% | 24.23% | 25.96% | 22.67% | -9.46% | 10.91% | 17.81% | 17.27% | 12.32% | 9.55% | -10.39% | -10.61% | -25.97% | 15.99% | 6.75% | 7.96% | 18.25% | 16.36% |
| Net Income Growth % | 34.69% | 26.91% | -3.41% | 39.38% | -4.4% | 65.55% | 37.09% | 0.03% | 25.4% | 32.67% | 12.3% | 15.92% | 17.84% | -11.41% | -21.86% | 43.56% | 777.04% | -146.82% | -52.03% | 8.65% | 98.74% | 32.28% | 247.11% | 22.99% | 56.72% | -238.9% | 327.55% | 31.06% | -58.22% | 45.63% | 58.43% |
| Net Income (Continuing) | 12.68B | 9.61B | 7.57B | 7.84B | 5.62B | 5.88B | 3.55B | 2.59B | 2.59B | 2.07B | 1.56B | 1.39B | 1.2B | 1.02B | 1.15B | 1.47B | 1.02B | -150.93M | 322.37M | 672.06M | 618.55M | 311.23M | 235.29M | -124.29M | -87.99M | -479.83M | 344.38M | 80.8M | 61.65M | 147.55M | 101.32M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -35.65M | -119.7M | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 10.83M | 15.38M | 19.14M | 119.74M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 33.07 | 24.71 | 19.24 | 19.54 | 13.80 | 14.94 | 7.89 | 6.06 | 6.28 | 4.61 | 3.63 | 3.26 | 2.79 | 2.34 | 2.62 | 4.77 | 3.02 | -0.44 | 0.97 | 1.75 | 1.80 | 0.98 | 0.65 | -0.48 | -0.64 | -1.51 | 1.17 | 0.28 | 0.19 | 0.92 | 0.32 |
| EPS Growth % | 37.25% | 28.43% | -1.54% | 41.59% | -7.63% | 89.35% | 30.2% | -3.5% | 36.23% | 27% | 11.35% | 16.85% | 19.23% | -10.69% | -45.07% | 57.95% | 786.36% | -145.36% | -44.57% | -2.78% | 83.67% | 50.77% | 235.42% | 25% | 57.62% | -229.06% | 317.86% | 47.37% | -79.35% | 187.5% | 52.38% |
| EPS (Basic) | - | 24.73 | 19.25 | 19.56 | 13.81 | 14.97 | 7.91 | 6.07 | 6.30 | 4.63 | 3.65 | 3.28 | 2.80 | 2.36 | 2.63 | 4.81 | 3.04 | -0.44 | 0.99 | 1.81 | 1.87 | 0.98 | 0.65 | -0.48 | -0.64 | -1.51 | 1.21 | 0.28 | 0.19 | 0.92 | 0.32 |
| Diluted Shares Outstanding | 383.5M | 388.9M | 393.6M | 394.1M | 398M | 410.4M | 419.1M | 421.6M | 426.4M | 431.6M | 427.68M | 432.64M | 439.69M | 433.45M | 426.99M | 330.37M | 338.01M | 333.11M | 334.34M | 373.95M | 344.95M | 371.64M | 331.72M | 330.07M | 326.39M | 318.86M | 299.1M | 287.7M | 327.48M | 320.41M | 313.22M |
| Basic Shares Outstanding | 383.1M | 388.5M | 393.3M | 393.8M | 397.7M | 409.8M | 418.3M | 420.8M | 424.9M | 429.8M | 425.6M | 430.64M | 437.14M | 429.77M | 424.1M | 327.73M | 335.06M | 333.11M | 332.35M | 356.05M | 325.02M | 331.34M | 330.85M | 330.07M | 326.39M | 318.86M | 286.5M | 284.87M | 327.48M | 320.41M | 313.22M |
| Dividend Payout Ratio | - | 25.49% | 33.84% | 29.43% | 44.45% | 24.25% | 27.92% | 50.41% | 23.8% | 24.09% | 30.17% | 22.18% | 22.94% | 21.28% | 16.06% | 12.63% | 8.49% | - | 33.86% | - | - | - | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying ASML stock.
For fiscal year 2025, ASML Holding N.V. (ASML) reported total revenue of $32.67B. This represents a 5174.1% increase compared to $619.4M in 1996.
ASML Holding N.V. (ASML) is profitable, generating $9.61B in net income for the fiscal year ending 2025 with a net profit margin of 29.4%.
ASML Holding N.V. (ASML) reported an operating income of $11.30B, resulting in an operating profit margin of 34.6%. This margin reflects the operational efficiency of the business before interest and taxes.
ASML Holding N.V. (ASML) generated $17.26B in gross profit for the year, representing a gross profit margin of 52.8%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Export control revenue concentration
Revenue Rebound Sharply Accelerating
ASML's revenue growth swung from a -21.6% contraction in 2024Q1 to a robust 55.2% increase in 2026Q3, with sequential quarterly revenue more than doubling from $5.3B to $11.7B over eight quarters, suggesting a powerful cyclical upswing driven by the High-NA EUV adoption cycle.
The inflection from negative growth in early 2024 to accelerating momentum through 2026 reflects a recovery in foundry and memory capex spending, likely amplified by the AI-driven advanced node buildout. The pace of acceleration from 0.7% growth in 2025Q3 to 55.2% in 2026Q3 warrants scrutiny as to whether this represents a step-change in litho intensity or a pull-forward effect tied to customer fab construction timelines. The skipped guidance in the latest reported quarter introduces uncertainty around the durability of this trajectory, suggesting management visibility into 2027 demand remains limited by geopolitical variability.
Gross Margin Structural Expansion
Gross margin expanded from 51.0% in 2024Q1 to 57.4% in 2026Q3 — a 640 basis point improvement — while operating margin climbed from 26.3% to 44.4%, reflecting a favorable product mix shift toward higher-priced EUV and High-NA systems versus mature DUV tools.
The margin expansion appears structurally tied to the product mix, as each incremental High-NA EUV shipment carries significantly higher ASP and likely higher gross margin than legacy immersion systems. However, gross margin did compress to 51.6% in 2025Q3 before rebounding, suggesting mix volatility quarter-to-quarter as DUV and service revenue provide volume but dilute blended margins. Against peers like KLA (61.3% GM) and Lam (50.5% GM), ASML's 57.4% gross margin reflects its monopoly pricing power but remains sensitive to the balance between EUV and DUV shipment timing, making sustained margin above 55% contingent on High-NA ramp velocity.
Extreme Operating Leverage from Fixed Cost Base
Operating income expanded 3.7x from $1.4B in 2024Q1 to $5.2B in 2026Q3 while R&D and SG&A combined grew only 21% over the same period, demonstrating that ASML's high fixed-cost structure generates extraordinary incremental margins on incremental revenue.
R&D expenses held nearly flat at $1.0–1.3B per quarter across the entire 10-quarter window while revenue more than doubled, indicating that the heavy EUV development investment is now being harvested against a scaled revenue base. SG&A remained disciplined in the $270–375M range, representing under 3.1% of revenue in 2026Q3 versus 5.2% in 2024Q1 — an efficiency gain that underscores operating discipline. This operating leverage profile suggests that if High-NA adoption broadens and the backlog converts at scale, incremental operating margins could remain elevated, though the fixed cost base could become a drag if geopolitical disruptions impair the revenue trajectory.
Net Income Approaching Operating Income
Net margin of 42.5% in 2026Q3 nearly matched the 44.4% operating margin, implying minimal drag from taxes and non-operating items — a pattern across recent quarters that suggests either favorable tax structuring or non-operating gains are contributing meaningfully to reported EPS.
The narrow 190 basis point spread between operating and net margin is unusual for a Dutch-domiciled multinational and may reflect the company's international tax structure or one-time non-operating items in the latest quarter. Stock-based compensation is negligible at $31.1M in 2026Q1 relative to $5.0B in net income, meaning dilution is minimal and earnings quality is not materially impaired by equity compensation expenses. The 135.9% EPS growth in 2026Q3 significantly outpaced the 55.2% revenue growth, suggesting leverage effects amplified by any non-operating tailwinds — investors should verify the durability of the effective tax rate before extrapolating current EPS trajectory.
Peak Margin and Growth Double Risk
The simultaneous peak in revenue growth (55.2%), gross margin (57.4%), and operating margin (44.4%) in a single quarter, combined with skipped forward guidance, suggests ASML may be at or near the top of its current cyclical and mix-driven margin envelope.
Export control tightening on mid-range DUV immersion systems to China — historically a major revenue contributor — could compress the mature-node revenue base without an offsetting High-NA volume ramp. The 57.4% gross margin depends on sustained High-NA mix; any reversion toward DUV-heavy shipments (as seen in the 51.6% gross margin in 2025Q3) would rapidly deflate operating leverage. Additionally, the extreme concentration of revenue in Taiwan, South Korea, and China means that any regulatory or geopolitical shock to these geographies would have an outsized impact on the income statement that current margin expansion does not adequately compensate for.