Revenue and Profit Beat Expectations in Second Quarter
ASML reported stronger-than-expected results for the second quarter, surpassing analyst estimates in both revenue and profit. The Dutch semiconductor equipment maker posted net sales of 7.7 billion euros and a net profit of 2.29 billion euros, beating consensus forecasts of 7.52 billion euros and 2.04 billion euros respectively. The company also reported 5.5 billion euros in net bookings, well above the expected 4.19 billion euros.
Despite the strong quarter, ASML shares fell 11.4% as investors reacted to cautious forward guidance. The company warned that growth in 2026 is no longer assured due to rising geopolitical tensions and macroeconomic headwinds, including the ongoing uncertainty surrounding U.S. trade and tariff policy.
2025 Growth Outlook Trimmed
ASML now expects full-year 2025 net sales to grow by 15%, translating to approximately 32.5 billion euros. This marks a narrowing from the previous guidance range of 30 to 35 billion euros. The revision reflects a more conservative outlook amid volatility in global demand and supply chain complexities tied to tariffs and policy shifts.
The company’s forecast for third-quarter revenue between 7.4 billion and 7.9 billion euros also came in below market expectations of 8.3 billion euros. The revised projections contributed to investor concerns about the company’s near-term trajectory despite its critical role in the semiconductor value chain.
AI Demand Still Driving Equipment Sales
ASML remains a cornerstone in advanced chip manufacturing, supplying extreme ultraviolet lithography (EUV) machines essential for producing the world’s most powerful semiconductors. Its clients include industry giants like Nvidia, Apple, Intel, and Taiwan Semiconductor Manufacturing Co.
AI continues to be a significant growth driver for ASML’s EUV technology. The company’s CFO, Roger Dassen, noted that demand for AI-related chips helped lift sales, particularly through revenue from upgrades to existing machines. Dassen also pointed out that tariffs had a “less negative” impact than previously anticipated in the second quarter.
ASML shipped one unit of its new High NA EUV machine in the quarter. These next-generation tools, each costing over $400 million, are central to the company’s future growth strategy and are expected to be critical for enabling further chip miniaturization and performance enhancements.
2026 Outlook Clouded by Global Instability
While ASML reaffirmed that AI-related fundamentals remain strong among its customers, CEO Christophe Fouquet cautioned that rising geopolitical risks and economic pressures introduce significant uncertainty for 2026. “We continue to prepare for growth, but cannot confirm it at this stage,” he said.
ASML’s reliance on a complex global supply chain and exposure to cross-border trade dynamics make it particularly sensitive to policy shifts and international tensions. The company’s performance remains a bellwether for the broader semiconductor industry, which is navigating shifting priorities in global chip production and demand.
