ASML Hits High End of Guidance, Stock Falls on Booking Decline and Growth Warning

Shernice軒嬣 2000
07-16

ASML shares plunged 7% after its Q2 2025 earnings release. Here are the year-over-year figures:

— Total net sales: up 23.2% to €7.7 billion

— Net profit: up 45.1% to €2.3 billion

— Gross margin: 53.7% (an increase of 220 basis points)

— Net bookings: down 0.5% to €5.5 billion

— New lithography system sales: down 24.7% to 67 units

Despite ongoing strong AI investment, both revenue and profit reached the high end of guidance. ASML maintained its full-year 2025 forecast of ~15% sales growth and ~52% gross margin.

However, the company warned that growth may not continue into 2026. Its stock dropped 7% in after-hours trading and has significantly underperformed the SOX index over the past year.

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TSMC Beats and Leads! Chip Sector Rebound to Pick?
ASML delivered strong Q2 results but management warned that it may not be able to achieve growth in 2026. The stock fell 10%. Taiwan Semiconductor Manufacturing Co. reported a better-than-expected 61% jump in profit for the June quarter, bolstering confidence in the momentum of the global AI spending spree. TSMC expects Q3 revenue of $31.8-33 bln in its earnings call (vs Q3 2024 revenue $23.5 bln). TSM jumps 4% in the overnight trading and leads chip sector to rebound.
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Comments

  • JackQuant
    07-17
    JackQuant
    Nice sharing! Why are the expectations of managers so pessimistic in your opinion?
    • Shernice軒嬣 2000: 
      Results were conservatively projected and will significantly outperformed expectations. This creates opportunity for employees to acquire shares at a lower valuation and benefit from substantial upside upon next earnings.
  • Merle Ted
    07-17
    Merle Ted
    Asml should learn from TSM how to show Earnings.

  • Enid Bertha
    07-17
    Enid Bertha
    Low 700s is the buy signal

  • LavDe
    07-16
    LavDe
    Great article, would you like to share it?
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