ASML Holding Plunges 7.48% Amid Tariff Uncertainty

On July 16, 2025, ASML Holding experienced a significant drop of 7.48% in pre-market trading, reflecting growing concerns among investors about the company's future prospects.

Analysts from Jefferies have highlighted that the increasing uncertainty surrounding Trump's tariffs is a major factor contributing to ASML's cautious outlook for 2026. The company's CEO, Christophe Fouquet, has acknowledged that macroeconomic and geopolitical risks, including tariffs, are creating an environment of heightened uncertainty. This has led to a revision of the company's previous growth projections for 2026, which had initially forecasted a 7% increase in revenue to 347 billion euros.

Despite reporting strong second-quarter sales of 76.9 billion euros, surpassing market expectations of 75.4 billion euros, ASML's cautious stance on future growth has disappointed analysts. The company's second-quarter order book, which included 20 billion euros in EUV lithography machine orders, saw a substantial 41% increase compared to the previous quarter. However, the potential impact of tariffs on ASML's export operations and supply chain has raised concerns about the company's ability to maintain its profitability and growth trajectory.

The uncertainty surrounding tariffs and geopolitical tensions has led to a more conservative approach from ASML, as the company is now unable to confirm whether it will achieve growth in 2026. This shift in outlook has contributed to the recent decline in ASML's stock price, as investors reassess the company's future prospects in light of these challenges.