ASML's Revenue Dips 12.4% in Q2

ASML reported its Q2 2025 financial results, with total net sales reaching €7.7 billion and net income at €2.3 billion. The company's gross margin stood at 53.7% for the quarter. While analyst revenue estimates were approximately €8.79 billion, ASML's reported sales of €7.7 billion suggest a miss, and the net income of €2.3 billion also did not align with the analyst EPS estimate of 5.94.

Performance Drivers

The company noted continued progress in lithography intensity, particularly within the DRAM sector, supported by the introduction of the TWINSCAN NXE:3800E. EUV adoption is advancing as planned, including High NA, with the first TWINSCAN EXE:5200B system shipped during the quarter.

Management Outlook

ASML anticipates total net sales for Q3 2025 to be between €7.4 billion and €7.9 billion, with an expected gross margin ranging from 50% to 52%. For the full year 2025, the company projects a 15% increase in total net sales compared to 2024, maintaining a gross margin of around 52%. R&D costs are estimated at approximately €1.2 billion, and SG&A costs are projected to be around €310 million.

Regarding 2026, ASML's CEO, Christophe Fouquet, stated that while AI customers' fundamentals remain strong, increasing uncertainty from macroeconomic and geopolitical developments prevents the company from confirming growth for that year, despite preparation for it.