ASML Q2 Profit Climbs, But Shares Hit As Bookings Down, Warns On Growth In FY26

(RTTNews) - Shares of ASML Holding N.V. were losing around 8 percent in the morning trading in Amsterdam as well as in the pre-market activity on the Nasdaq Stock Exchange, after the Dutch semiconductor equipment maker on Wednesday warned that it can't confirm growth in fiscal 2026. This was after reporting weak unit volume and bookings in its second quarter, even as profit and net sales were higher. The company also issued third-quarter outlook and maintained growth outlook for fiscal 2025.

Christophe Fouquet, CEO of ASML, said, "Looking at 2026, we see that our AI customers' fundamentals remain strong. At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage."

For the third quarter, the company projects total net sales between 7.4 billion euros and 7.9 billion euros, with a gross margin between 50 percent and 52 percent.

For the full year 2025, the company now said it expects a 15 percent increase in total net sales and a gross margin of around 52 percent.

ASML previously said it expects 2025 total net sales to be between 30 billion euros and 35 billion euros, with a gross margin between 51 percent and 53 percent.

In 2024, the company achieved total net sales of 28.3 billion euros, and a gross margin of 51.3 percent.

Further, ASML announced its plan to pay an interim dividend of 1.60 euros per share on August 6.

In its second quarter, ASML reported net income of 2.29 billion euros or 5.90 euros per share, higher than 1.58 billion euros or 4.01 euros per share last year.

The gross margin was 53.7 percent, above guidance, and higher than 51.5 percent from last year, primarily driven by higher upgrade business and one-offs resulting in lower costs.

The company's net sales for the period rose 23.2 percent to 7.69 billion euros from 6.24 billion euros a year ago. Both net system sales as well as net service and field option sales were higher than the prior year.

Meanwhile, sales of lithography systems fell to 76 units from last year's 100 units.

Quarterly net bookings also dropped to 5.54 billion euros from last year's 5.57 billion euros.

In pre-market activity on the Nasdaq, ASML shares were losing around 8 percent to trade at $757.

In Amsterdam, ASML shares were trading at 653.20 euros, down 7.5 percent.

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