Tariff Uncertainty and Healthcare Sector Performance.

ASML warned it may not achieve revenue growth in 2026 due to uncertainty surrounding US tariffs. Meanwhile, Johnson & Johnson shares surged after halving its tariff-related costs and raising its full-year sales and profit forecast. The healthcare sector has been underperforming, but J&J's strong results present a value-priced leader in the industry.

ASML Holding NV, the world's leading supplier of chip-making equipment, has warned that it may not achieve revenue growth in 2026 due to uncertainty surrounding US tariffs. The company's shares fell by as much as 11% on Wednesday, reaching a low of €630.70 in Amsterdam, following the announcement [1].

ASML's CEO, Christophe Fouquet, stated that while the company continues to prepare for growth in 2026, it cannot confirm it at this stage due to increasing uncertainty driven by macro-economic and geopolitical developments [1]. The company's forecast for third-quarter net sales was between €7.4 billion and €7.9 billion, below the average analyst estimate of €8.2 billion [1].

Meanwhile, Johnson & Johnson shares surged after halving its expectations for tariff-related costs in 2025 and raising its full-year sales and profit forecast. The healthcare giant's shares rose by 6.5% on Wednesday, following the announcement [3].

Johnson & Johnson attributed the reduction in tariff-related costs to the Trump administration's pause on China levies and other duties. The company now expects about $200 million in tariff-related costs this year, down from a previous estimate of about $400 million [3]. J&J's Chief Financial Officer, Joe Wolk, noted that the company was able to absorb those costs and still raise its profit outlook [3].

The healthcare sector has been underperforming, but J&J's strong results present a value-priced leader in the industry. The company beat Wall Street expectations for the second quarter, posting adjusted earnings of $2.29 billion, up from $1.58 billion a year earlier [3].

References:
[1] https://finance.yahoo.com/news/asml-walks-back-2026-growth-061702879.html
[3] https://www.marketscreener.com/quote/stock/JOHNSON-JOHNSON-4832/news/Johnson-Johnson-lifts-2025-forecast-halves-tariff-cost-outlook-50522966/