An icon of ASML is displayed on a smartphone, with an ASML chip visible within the background.
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ASML on Wednesday warned of the opportunity of no growth in 2026, whilst it beat top and bottom line expectations for the second quarter.
ASML’s guidance for the present quarter missed expectations while it narrowed its own forecast for the remaining of the 12 months.
Shares of ASML dropped 6.5% in early trading, shortly after European markets opened.
Like many firms within the semiconductor industry, ASML has been grappling with uncertainty created by U.S. tariff policy.
The corporate forecast third-quarter revenue of between 7.4 billion euros and seven.9 billion euros, which was shy of market expectations of 8.3 billion euros.
ASML said it expects full-year 2025 net sales to grow 15%, narrowing its guidance from a previously announced forecasts of between 30 billion euros to 35 billion euros. That growth number would imply 2025 revenue of 32.5 billion.
Nonetheless, the Dutch tech giant was less certain concerning the outlook for 2026.
” 2026, we see that our AI customers’ fundamentals remain strong,” ASML CEO Christophe Fouquet said in a press release.
“At the identical time, we proceed to see increasing uncertainty driven by macro-economic and geopolitical developments. Due to this fact, while we still prepare for growth in 2026, we cannot confirm it at this stage.”
AI driving growth
For the present quarter, ASML beat analyst estimates on top and bottom line and on the important thing net bookings figure.
Here’s how ASML did versus LSEG consensus estimates for the second quarter:
- Net sales: 7.7 billion euros ($8.95 billion) versus 7.52 billion euros expected
- Net profit: 2.29 billion euros vs 2.04 billion euros expected
In its own previous forecast issued in April, ASML had said it expected second-quarter net sales of between 7.2 billion euros and seven.7 billion euros. In a pre-recorded interview posted on ASML’s website, the corporate’s Chief Financial Officer Roger Dassen said the beat was because of revenue from upgrading currently deployed machines in addition to tariffs having a “less negative” impact than anticipated.
Analysts anticipated net bookings — a key indicator of order demand — would are available at 4.19 billion euros over the April-June stretch. ASML reported net bookings of 5.5 billion euros.
ASML is one of the vital necessary semiconductor supply chain firms on this planet. It makes extreme ultraviolet lithography (EUV) machines, that are required to fabricate essentially the most advanced chips on this planet, corresponding to those designed by Apple and Nvidia.
Firms like Intel and Taiwan Semiconductor Manufacturing Co. are customers of ASML.
ASML has benefitted from demand related to chips required for artificial intelligence. Dassen said that this AI demand is “an enormous driver for EUV.”
The Veldhoven, Netherlands-headquartered company has released its next generation EUV tools generally known as High NA, which stands for top numerical aperture. These machines, that are larger than a double-decker bus and can cost greater than $400 million each, are key to ASML’s future growth plans.
ASML said it shipped one High NA tool within the second quarter.
