ASML: Strong Quarter, Uncertain Guidance
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The analysis indicates that Here's our initial take on ASML's (ASML -8. 41%) fiscal 2025 second-quarter financial report, given current economic conditions. Key Metrics Metric Q2 2024 Q2 2025 Change...
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July 16, 2025
01:03 PM
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The analysis indicates that Here's our initial take on ASML's (ASML -8. 41%) fiscal 2025 second-quarter financial report, given current economic conditions
Key Metrics Metric Q2 2024 Q2 2025 Change vs
Expectations Net sales 6
At the same time, 2 billion euros 7, in this volatile climate. 7 billion euros 24% Beat EPS 4. 01 euros 5, amid market uncertainty. 90 euros 47% Beat New units sold 89 67 -25% n/a Net bookings 5. 6 billion euros 5, given current economic conditions
Additionally, 5 billion euros -2% n/a ASML Management Is Unsure 2026 Growth ASML is the world's go-to supply of high-end lithography equipment used to manufacture microchips, with its most expensive systems selling for nearly $400 million each, amid market uncertainty
The company stands to be a major beneficiary of the AI boom, which is fueling demand for more chips and the machines that duce them, but the high price of its systems tends to result in quarter-to-quarter choppiness, given the current landscape
ASML posted revenue and earnings up 24% and 47% year over year despite selling fewer systems this quarter (which is quite significant)
At the same time, Lithography equipment varies in price based on the sophistication of the device, implying that the company is seeing strong demand for its newer, cutting-edge nology
Net bookings in the quarter came in flat at 5, considering recent developments
Moreover, 5 billion euros, of which 2. 3 billion euros was for higher-end systems
The company generated a gross margin of 53 (an important development)
On the other hand, 7% in the quarter
But the company is worried storm clouds on the horizon
ASML's semiconductor customers have been dealing with heightened uncertainty due to trade restrictions and tariff policies, creating questions orders heading into 2026
CEO Christophe Fouquet said, "AI customers' fundamentals remain strong," but ASML is seeing "increasing uncertainty driven by macro-economic and geopolitical developments
In contrast, " Fouquet said that while ASML is still preparing for growth in 2026, "we cannot confirm it at this stage (noteworthy indeed). " Immediate Market Reaction Investors were focused on the ary 2026, and not the second-quarter results
Furthermore, Meanwhile, ASML s were down 8% in premarket trading ahead of the New York Stock Exchange open (something worth watching)
What to Watch Although ASML's cautious guidance 2026 is weighing on investors post-earnings, the long-term growth story is still intact
Nevertheless, The company is a vital piece in the supply of arguably one of the most important components of the global economy, and with AI spending and other digital efforts ly to continue to build for years to come, there should be solid demand for semiconductors and the machines needed to make them
The geopolitical situation is rapidly changing
Just this week, the U
Reversed a ban on Nvidia (NVDA 0
Additionally, 37%) selling its H20 chips in China
In a recorded interview posted on ASML's website accompanying earnings, the company's chief financial officer, Roger Dassen, attributed the second-quarter beat in part to tariffs having a "less negative" impact than anticipated
If that trend continues, ASML's caution 2026 could ve to be overly conservative (quite telling)
However, Helpful Resources Full earnings report Investor relations page Lou Whiteman has positions in ASML, in today's market environment
Furthermore, The Motley Fool has positions in and recommends ASML and Nvidia
The Motley Fool has a disclosure policy, in today's market environment.
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