{"schemaVersion":1,"research":true,"symbol":"asml","name":"ASML","topic":"moat","path":"/stock/asml/moat","status":"published","version":3,"updatedAt":"2026-10-18T12:06:11.354Z","locked":false,"publicFairValue":false,"fairValue":null,"moat":{"verdict":"narrow","summary":"ASML has an evidenced technology moat: proprietary lithography capabilities, an almost ten-year development effort culminating in a customer delivery, and reported adoption of productivity improvements. Growing service revenue supports continuing customer dependence. The passages do not establish competitive exclusivity or exceptional durability. Pricing evidence is mixed: negotiated discounts and concessions are disclosed, while comparable-product realized price trends are absent. Supplier dependence, IP leakage, service substitution and export restrictions constrain resilience.","advantages":[{"mechanism":"intangible_assets","claim":"Proprietary technology and accumulated development expertise support differentiated lithography products. Reported customer adoption and completed deliveries provide operating evidence beyond a statement of technological ambition.","durability":"The almost ten-year development effort for the first full-specification EXE:5200B delivery suggests a substantial replication barrier. Continued NXE adoption supports a current advantage, but neither the development period nor IP ownership establishes a guaranteed competitive lead.","risks":"Patent expiry, imitation and previously experienced IP misappropriation could weaken differentiation. Dependence on essential optics from Carl Zeiss SMT creates a separate vulnerability. High NA's first delivery establishes progress, not broad commercial adoption.","invalidation":"The advantage would be undermined by demonstrated competing technology matching customer productivity and cost outcomes, sustained displacement of ASML systems, or repeated roadmap failures that prevent customers from obtaining the reported benefits.","competitors":[],"evidenceIds":["e1","e2","e3","e4"],"counterEvidenceIds":["e6","e7","e8","e9"]},{"mechanism":"switching_costs","claim":"Continuing use of ASML systems creates demand for platform-specific service and upgrades. Service and field option revenue growth and continued product adoption support customer dependence indirectly; they do not quantify the cost of switching equipment suppliers.","durability":"An installed base that continues to generate service and upgrade demand can sustain relationships beyond initial equipment sales. The evidence supports a qualified lifecycle advantage, without proving exclusive service access or customer lock-in.","risks":"Customers can perform services themselves or use third parties, and export controls can restrict ASML's ability to serve installed systems. Revenue growth also reflects installed-base expansion and demand conditions.","invalidation":"Sustained migration of servicing and upgrades to customers or third parties, declining service attachment despite a stable installed base, or demonstrated equipment substitution with little disruption would weaken this assessment.","competitors":[],"evidenceIds":["e1","e2","e5"],"counterEvidenceIds":["e10"]}],"evidence":[{"id":"e1","sourceId":"filing-1","location":"CEO discussion / NXE:3800E customer adoption","excerpt":"We have seen strong execution of our technology roadmap across the business, most particularly in EUV with our TWINSCAN NXE:3800E system which continues to be adopted by advanced Logic and DRAM customers due to its higher productivity and cost of technology benefits."},{"id":"e2","sourceId":"filing-1","location":"CEO discussion / EUV cost per exposure and DRAM adoption","excerpt":"DRAM has been particularly remarkable this year, as the work we have done to reduce the cost of our EUV per exposure through increased maturity and productivity led to increased adoption."},{"id":"e3","sourceId":"filing-1","location":"CEO discussion / EXE:5200B development and first delivery","excerpt":"After almost 10 years of tremendous work from so many people in ASML, we have released our first TWINSCAN EXE:5200B in full specification to our first customer."},{"id":"e4","sourceId":"filing-1","location":"Risk and security / proprietary technology protection","excerpt":"We rely on intellectual property (IP) rights such as patents, copyrights and trade secrets to protect our proprietary technology."},{"id":"e5","sourceId":"filing-1","location":"Financial performance KPIs / 2025 and 2024 operating results","excerpt":"Roger Dassen Executive Vice President and Chief Financial Officer STRATEGIC REPORT CORPORATE GOVERNANCE SUSTAINABILITY FINANCIALS ASML Annual Report 2025 54 At a glance Q&A with the CEO Our business Financial performance Risk and security Financial performance KPIs Sales Profitability Liquidity Total net sales Gross profit % of total net sales Cash and cash equivalents and short-term investments (year end) €32.7bn €17.3bn 52.8% €13.3bn 2024: €28.3bn 2024: €14.5bn 2024: 51.3% 2024: €12.7bn Net system sales Income from operations Net cash provided by operating activities €24.5bn €11.3bn 34.6% €12.7bn 2024: €21.8bn 2024: €9.0bn 2024: 31.9% 2024: €11.2bn Net service and field option sales Net income Free cash flow2 €8.2bn €9.6bn 29.4% €11.0bn 2024: €6.5bn 2024: €7.6bn 2024: 26.8% 2024: €9.1bn Sales of lithography systems (in units)1 Earnings per share (basic) 327 €24.73 2024: 418 2024: €19.25 EUV systems recognized (in units) 48 2024: 44 1."},{"id":"e6","sourceId":"filing-1","location":"IP risk / patent expiry","excerpt":"4.Patent rights will expire, which may result in key technology becoming widely available, which may harm our competitive position."},{"id":"e7","sourceId":"filing-1","location":"IP risk / competing technology","excerpt":"7.Third parties may be able to develop or obtain patents for our own or for similar competing technology."},{"id":"e8","sourceId":"filing-2","location":"IP risk / experienced misappropriation attacks","excerpt":"misappropriation attacks by third parties or our employees,"},{"id":"e9","sourceId":"filing-1","location":"Supplier risk / essential optics supply dependence","excerpt":"Furthermore, if Carl Zeiss SMT were to terminate its supply relationship with us or be unable to maintain production of optics over a prolonged period, we would effectively cease to be able to conduct our business."},{"id":"e10","sourceId":"filing-1","location":"Installed-base revenue risk / self-service, third parties and export controls","excerpt":"In addition, our installed base revenues are impacted by the number of systems we sell, and other factors; for example, customers may perform more of these services themselves, find other third-party suppliers to provide them, or we may be limited by export control restrictions."},{"id":"e11","sourceId":"filing-1","location":"Revenue recognition / volume agreement discounts","excerpt":"In our volume purchase agreements we offer customers discounts in the"},{"id":"e12","sourceId":"filing-1","location":"Revenue recognition / negotiated discounts","excerpt":"normal course of sales negotiations."},{"id":"e13","sourceId":"filing-1","location":"Revenue recognition / free goods and services","excerpt":"As part of these volume purchase agreements, we may also offer free goods or"},{"id":"e14","sourceId":"filing-1","location":"Revenue recognition / future purchase credits","excerpt":"services and credits that can be used toward future purchases."},{"id":"e15","sourceId":"filing-1","location":"Revenue recognition / sales agreement return terms","excerpt":"Our sales agreements do not include"},{"id":"e16","sourceId":"filing-1","location":"Revenue recognition / specification-related return exception","excerpt":"a right of return for any reason other than not meeting the agreed-upon specifications."},{"id":"e17","sourceId":"filing-1","location":"Financial statement notes / completed 2025 share repurchases","excerpt":"In 2025, we repurchased 8,323,320 shares (2024: 574,925 shares) for a total consideration of €5,950.0 million (2024: €500.0 million)."},{"id":"e18","sourceId":"filing-1","location":"Financial statement notes / completed share cancellations","excerpt":"In 2025, we cancelled 5,683,018 shares (2024: 5,754,117 shares)."},{"id":"e19","sourceId":"filing-1","location":"Remuneration report / completed 2023–2025 LTI performance","excerpt":"For the LTI 2023–2025 series, ASML exceeded target on all performance measures – Relative Total Shareholder Return (rTSR), Cash Conversion Rate, Technology Leadership Index and ESG."},{"id":"e20","sourceId":"filing-1","location":"Remuneration report / actual LTI vesting result","excerpt":"The overall LTI result is a vesting of 137.4% of target."},{"id":"e21","sourceId":"filing-1","location":"2025 remuneration policy / performance and holding periods","excerpt":"Shares will become unconditional depending on the achievement of predetermined performance targets during a three-year period, after which a two-year holding period applies."},{"id":"e22","sourceId":"filing-1","location":"2025 remuneration implementation / LTI measure weightings","excerpt":"2025 Implementation LTI 2025-2027 target levels CEO Other BoM members LTI 2025-2027 performance measure weighting 25% 40% 35% Relative TSR 25% Financial strategic value drivers 35% Non-financial measures 40% A detailed breakdown of the LTI 2023-2025 vesting levels can be found in section ‘Vesting under the LTI Plan 2023-2025’ of this report."},{"id":"e23","sourceId":"filing-1","location":"Remuneration report / Supervisory Board assessment of completed LTI cycle","excerpt":"Vesting under the LTI Plan 2023–2025 Following the end of the three-year performance period 2023–2025, the Supervisory Board assessed the performance achieved against the LTI targets, in cooperation with the Technology Committee, Audit Committee, ESG Committee and Remuneration Committee."},{"id":"e24","sourceId":"filing-1","location":"Supervisory Board report / Works Council involvement and actual appointment","excerpt":"During 2025 we also engaged with the Works Council on specific topics, such as Board of Management and Supervisory Board remuneration and we collaborated with the Works Council on the topic of composition of the Supervisory Board, given the Works Council’s (enhanced) right of recommendation, which led to the appointment of Karien van Gennip as a Supervisory Board member at the 2025 AGM."},{"id":"e25","sourceId":"filing-1","location":"Shareholder rights / voting rights of issued shares","excerpt":"There are no special voting rights on the issued shares in our share capital."},{"id":"e26","sourceId":"filing-1","location":"Financial statement notes / preference-share cancellation safeguards","excerpt":"STRATEGIC REPORT CORPORATE GOVERNANCE SUSTAINABILITY FINANCIALS ASML Annual Report 2025 316 Financial statements Notes Appendices Definitions Notes to the Consolidated financial statements (continued) If the Foundation does not request that we repurchase or cancel all cumulative preference shares held by the Foundation within 20 months of issuance of these shares, we will be required to convene a General Meeting for the purpose of deciding on a repurchase or cancellation of these shares."},{"id":"e27","sourceId":"filing-1","location":"Supplier risk / experienced production constraints","excerpt":"Occasionally, we experience supply constraints that affect production."}],"changes":["Retain the previous narrow verdict; the supplied evidence still does not establish competitive exclusivity or exceptional durability.","Replace the previous broad pricing-evidence gap with a mixed assessment based on disclosed negotiated discounts, concessions and return restrictions; realized comparable-product price trends remain unavailable.","Add management assessments supported by completed buybacks, cash generation, implemented incentives, actual vesting and governance actions."],"limitations":["Only the supplied passages were used. Filing dates retain dateKind=filed: filing-1 is dated 2026-02-25, filing-2 2025-03-05 and filing-3 2024-02-14. Forecasts and proposed actions are not treated as realized results.","The passages do not establish any named entity as an ASML competitor. Glossary names do not establish competitive relationships; competitor arrays are therefore empty. Market shares and comparative competitor performance are missing.","Technology benefits and adoption explanations are issuer reports, including CEO commentary. Operating results and completed deliveries support numerical assessments, but do not independently verify technological superiority.","No comparable-product price series, customer retention rate, quantified switching cost or general unilateral repricing right is supplied. Aggregate revenue per system would confound product mix and cannot establish realized pricing.","Executive ownership and detailed proxy evidence are absent. Incentive alignment is assessed from disclosed policy, implementation and completed vesting, without assuming ownership or treating proposals as adopted awards.","Several passages are fragmented. Their catalog IDs are cited separately without reconstructing quotations. The incomplete assurance passage is not treated as evidence of an adverse assurance opinion."],"qualityAssessments":[{"category":"moat","checks":[{"criterion":"structural_advantage","grade":3,"rationale":"Proprietary technology, reported productivity-driven adoption and a completed product delivery after almost ten years support a strong technology barrier. Competitive exclusivity is not established.","evidenceIds":["e1","e2","e3","e4"]},{"criterion":"durability","grade":2,"rationale":"Long development cycles and continuing service demand support persistence, but the passages do not establish the duration of the competitive lead. Patent expiry, imitation and essential supplier dependence constrain confidence.","evidenceIds":["e3","e5","e6","e7","e9"]},{"criterion":"customer_dependency","grade":3,"rationale":"Continued advanced Logic and DRAM adoption and service revenue rising from €6.5 billion to €8.2 billion support substantial ongoing dependence indirectly. No retention rate or exclusive service requirement is established.","evidenceIds":["e1","e2","e5","e10"]},{"criterion":"erosion_resilience","grade":2,"rationale":"Adoption and operating growth show the advantage remains productive. Experienced IP attacks and production constraints, critical optics dependence and possible service substitution create meaningful vulnerabilities without proving realized competitive displacement.","evidenceIds":["e1","e5","e8","e9","e10","e27"]}]},{"category":"pricing_power","checks":[{"criterion":"realized_pricing","grade":2,"rationale":"Negotiated volume discounts and disclosed concessions show that pricing is not unconstrained. Productivity benefits support customer value, but net comparable-product pricing and concession magnitude are absent; neither sustained increases nor broad price deterioration is demonstrated.","evidenceIds":["e2","e11","e12","e13","e14"]},{"criterion":"retention","grade":3,"rationale":"Continued product adoption and growing service and field option revenue provide strong indirect evidence of repeat demand and engagement. Installed-base expansion contributes, so these results are not a measured renewal or retention rate.","evidenceIds":["e1","e2","e5","e10"]},{"criterion":"margin_resilience","grade":3,"rationale":"Reported gross margin increased from 51.3% to 52.8%, while operating margin increased from 31.9% to 34.6% in 2025 despite disclosed supply constraints. This demonstrates recent resilience, without isolating pricing from mix, volume or cost effects or establishing resilience through every cycle.","evidenceIds":["e5","e27"]},{"criterion":"contractual_freedom","grade":2,"rationale":"Negotiated discounts, free goods or services and purchase credits indicate customer bargaining constraints. Return rights are restricted to failure to meet specifications, providing some contractual protection. General unilateral repricing discretion is not established.","evidenceIds":["e11","e12","e13","e14","e15","e16"]}]},{"category":"strong_management","checks":[{"criterion":"capital_discipline","grade":3,"rationale":"Reported €11.0 billion free cash flow, €13.3 billion year-end cash and short-term investments, €5.95 billion completed repurchases and actual share cancellations support disciplined funding and shareholder returns. These figures do not establish buyback valuation quality or the returns on every investment.","evidenceIds":["e5","e17","e18"]},{"criterion":"incentive_alignment","grade":3,"rationale":"Implemented share incentives combine shareholder, financial and nonfinancial measures, with three-year performance and two-year holding periods. The completed 2023–2025 cycle produced disclosed performance-based vesting. This supports alignment without proving exceptional incentive design or executive ownership.","evidenceIds":["e19","e20","e21","e22"]},{"criterion":"execution","grade":3,"rationale":"Completed full-specification delivery, continued NXE adoption and realized sales, earnings and cash-flow growth support strong execution from operating outcomes. Attribution of adoption to product benefits remains management's explanation, and first delivery does not establish broad High NA production success.","evidenceIds":["e1","e2","e3","e5"]},{"criterion":"governance","grade":2,"rationale":"Actual Supervisory Board incentive assessment, Works Council involvement in a completed appointment and absence of special voting rights support functioning oversight. The preference-share defense has disclosed cancellation safeguards but introduces a control consideration. The passages do not establish exceptional board effectiveness.","evidenceIds":["e23","e24","e25","e26"]}]}],"financialAssessments":[],"qualityPolicy":"quality-scores-2","sourcePolicy":"issuer-evidence-4","basisHash":"44058838a60f34cd7f09d669c83fa083d2acdddc7ad7c106a674e4f354d639ec","updatedAt":"2026-10-18T12:06:11.354Z","sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/937966/000162828026011378/asml-20251231.htm","publishedAt":"2026-02-25","sha256":"3bf98dba76b7f19aa779da670ff3412020188025b86ae469545ab4e9adfe5198","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/937966/000093796625000009/asml-20241231.htm","publishedAt":"2025-03-05","sha256":"3f9d717148890ae76f2e5848715a2d5dc28b3d12c09f5f53d1b503b1a00c91a5","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/937966/000093796624000008/asml-20231231.htm","publishedAt":"2024-02-14","sha256":"3c347a4e34d12ae7a00afa7b3b62074c3d3746a79ae489a5825b51ee521b81cf","dateKind":"filed"}],"model":"gpt-6.1-sol","providerId":"codex:53014edf2bb3b0b7cd21fe0356ba6e1df72b375adb63d00048429ee1580d81fc","usage":{"input_tokens":63137,"cached_input_tokens":0,"cache_write_input_tokens":0,"output_tokens":3324,"reasoning_output_tokens":118}},"signals":[{"period":"2021","end":"2021-12-31","values":{"gross_margin":52.70538928590618,"operating_margin":36.26941056364516,"roic":56.46497433457262,"fcf_margin":53.436677233893924,"sbc_revenue":0.6313470528182258},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2022","end":"2022-12-31","values":{"gross_margin":50.53557765876052,"operating_margin":30.70220181926379,"roic":81.38157222896486,"fcf_margin":34.028545250172385,"sbc_revenue":0.3254082953139316},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2023","end":"2023-12-31","values":{"gross_margin":51.29488179690477,"operating_margin":32.81129234174574,"roic":90.18981356894045,"fcf_margin":11.93025745232868,"sbc_revenue":0.48914128127437995},"issues":{"pfcf_growth":"TTM FCF per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2024","end":"2024-12-31","values":{"gross_margin":51.275700653506895,"operating_margin":31.923829472559433,"roic":68.30712563061124,"fcf_margin":32.19414851271455,"sbc_revenue":0.61069458548132},"issues":{"peg":"TTM earnings per diluted share growth is zero or negative; a growth-adjusted multiple requires positive growth.","software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}},{"period":"2025","end":"2025-12-31","values":{"gross_margin":52.82958799778372,"operating_margin":34.595451720833985,"roic":89.38269584656463,"fcf_margin":33.932709467877665,"sbc_revenue":0.6192737079587233},"issues":{"software_capex":"Separately disclosed software and intangible investment is unavailable in the extracted statements for this period.","roiic":"Invested capital did not increase versus the prior year. ROIIC requires a positive increase.","roic_wacc":"Enter a WACC assumption from 0 to 100%."}}],"sources":[{"id":"filing-1","url":"https://www.sec.gov/Archives/edgar/data/937966/000162828026011378/asml-20251231.htm","publishedAt":"2026-02-25","sha256":"3bf98dba76b7f19aa779da670ff3412020188025b86ae469545ab4e9adfe5198","dateKind":"filed"},{"id":"filing-2","url":"https://www.sec.gov/Archives/edgar/data/937966/000093796625000009/asml-20241231.htm","publishedAt":"2025-03-05","sha256":"3f9d717148890ae76f2e5848715a2d5dc28b3d12c09f5f53d1b503b1a00c91a5","dateKind":"filed"},{"id":"filing-3","url":"https://www.sec.gov/Archives/edgar/data/937966/000093796624000008/asml-20231231.htm","publishedAt":"2024-02-14","sha256":"3c347a4e34d12ae7a00afa7b3b62074c3d3746a79ae489a5825b51ee521b81cf","dateKind":"filed"}],"history":[{"version":3,"updatedAt":"2026-10-18T16:35:43.872Z","verdict":"narrow","value":null},{"version":2,"updatedAt":"2026-10-18T02:27:49.793Z","verdict":"narrow","value":null},{"version":1,"updatedAt":"2026-10-18T02:18:02.026Z","verdict":null,"value":null}],"hasRequested":false,"requestStatus":"completed","researchIssue":null,"archivedMoat":null,"scope":"supported_catalog"}