ASML ASML, Europe’s largest tech firm, reported a 23% year-over-year increase in net sales to €7.7 billion, beating expectations by €200 million. Earnings per share came in at €5.90, topping estimates by €0.75. Bookings rebounded strongly to €5.5 billion €1.3 billion above forecasts—including €2.3 billion in orders for EUV systems. Gross margin remained stable at 54%, supported by deliveries of High-NA machines and favorable upgrade sales.Management maintained its 2025 outlook, projecting around 15% revenue growth and a 52% gross margin. However, a more cautious stance was taken on 2026, with CEO Christophe Fouquet citing growing macroeconomic and geopolitical risks, cautioning that next year’s growth is no longer assured. Concerns over tariffs particularly affecting exports to the U.S., imported components, and possible retaliations have added to the uncertainty.
Despite solid AI-driven demand and an anticipated 30% year-over-year increase in EUV sales, ASML’s visibility into customer investment plans has weakened. China accounted for 27% of system sales, trailing Taiwan’s 35%. As external risks grow and growth forecasts narrow, investors are increasingly focusing on potential policy impacts rather than just EUV momentum. Still, most analysts maintained a positive long-term view following the earnings call
