Recurring, High-Margin ServiceWide moat

The service revenue itself is the highest-quality slice of ASML's business: recurring, high-margin, sticky, and growing fast. Installed Base Management brought in €8.2 billion in 2025 — roughly a quarter of total revenue¹ — and grew 26% that year, after 16% the year before, as the fleet of machines in the field expands. Because ASML is the sole source of service for its own machines, and because those machines run in high-value production where downtime is enormously costly, this revenue is both dependable and richly profitable.

For a business often thought of as a cyclical equipment maker, this recurring core is transformative. It smooths the cyclicality, since customers must service and run their existing machines regardless of whether they are buying new ones; it improves the quality and predictability of earnings; and it commands a valuation premium of its own, being the kind of sticky, recurring revenue the market prizes. As the installed base grows toward and beyond thousands of ever-more-advanced machines, the service annuity is on track to become an ever-larger and more stabilizing share of ASML's revenue — the quiet, compounding engine that makes the whole business more durable than the lumpy headline equipment sales would suggest. It is, in many ways, the single most attractive line in the company's accounts.