tl;dr
ASML reported strong Q2 results, exceeding revenue and profit expectations driven by AI-related chip equipment demand. Net sales were 7.7 billion euros with net profit of 2.29 billion euros, and net bookings hit 5.5 billion euros. However, the company issued cautious guidance for Q3 revenue (7.4-7.9...
ASML reported strong second-quarter results by beating both top and bottom line expectations, driven by demand for AI-related chip manufacturing equipment. The company posted net sales of 7.7 billion euros, surpassing analyst estimates of 7.52 billion euros, and a net profit of 2.29 billion euros versus the expected 2.04 billion euros. Additionally, net bookings reached 5.5 billion euros, well above the anticipated 4.19 billion euros, indicating robust order demand.
Despite these positive results, ASML issued a cautious outlook. Its guidance for the third quarter forecast revenue between 7.4 billion and 7.9 billion euros, falling short of market expectations at 8.3 billion euros. For full-year 2025, ASML now expects net sales growth of 15%, narrowing previous forecasts targeting 30 to 35 billion euros, implying around 32.5 billion euros in revenue. The company expressed uncertainty regarding 2026 growth due to geopolitical and macroeconomic challenges, highlighting the ambiguous impact of U.S. tariffs and broader economic conditions.
ASML remains a critical player in the semiconductor supply chain, manufacturing extreme ultraviolet lithography (EUV) machines essential for producing leading-edge chips for companies like Apple, Nvidia, Intel, and TSMC. Demand for these machines is powered largely by artificial intelligence applications, which the company identifies as a significant growth driver. ASML continues to advance its technology with the High NA generation of EUV tools, massive machines costing over $400 million each, shipping its first unit in the recent quarter. This product line is central to its strategy for sustaining future growth.
Shares of ASML dropped 6.5% in early European trading following the earnings and cautious guidance, reflecting investor concern about near-term uncertainties despite solid operational performance. The semiconductor sector, already navigating complex U.S. tariff policies and global economic headwinds, will be closely watching ASML’s next moves as a bellwether for chip industry health and innovation momentum.