ASML Executes $30M Share Buyback Amid Uncertainty Over Growth Prospects

ASML Holdings executed a $30 million share buyback, acquiring 35,487 shares. Analysts project a 22.18% upside in stock price, while GF Value estimates suggest a possible 58.85% upside. Despite robust Q2 earnings, ASML expressed caution regarding its growth outlook for 2026 due to global economic uncertainties and geopolitical tensions.

ASML Holdings N.V. (ASML) executed a $30 million share buyback, acquiring 35,487 shares [1]. This move comes amidst robust Q2 earnings, with analysts projecting a 22.18% upside in stock price, while GF Value estimates suggest a possible 58.85% upside [2]. Despite these positive indicators, ASML expressed caution regarding its growth outlook for 2026 due to global economic uncertainties and geopolitical tensions.

ASML's Q2 results were strong, with total lithography sales of €5.6 billion, a 2.4% quarter-over-quarter (QoQ) decrease but a 17.6% year-over-year (YoY) increase. Net bookings reached €5.54 billion, up 40.9% QoQ and in line with YoY expectations. Adjusted earnings per share (EPS) were €5.90, a 1.6% QoQ decrease but a 47.1% YoY increase [3].

However, ASML has quietly lowered its FY2025 revenue growth guidance to +15% YoY, down from the previously wider range of between +6.1% YoY to +23.8% YoY [3]. This adjustment reflects the company's cautious approach to the uncertain economic and geopolitical landscape. Despite the AI boom showing no signs of waning, with Nvidia (NVDA) and Taiwan Semiconductor Manufacturing Company Limited (TSM) reporting strong growth, ASML remains cautious about its own growth prospects for 2026.

ASML's share buyback and the projected stock price upside suggest investor confidence in the company's long-term prospects. However, the lowered guidance and caution about 2026 growth underscore the challenges posed by global economic uncertainties and geopolitical tensions. Investors should closely monitor ASML's future performance and guidance updates to gauge the impact of these factors on the company's growth.

References:
[1] ASML reports transactions under its current share buyback program [1] https://globenewswire.com/news-release/asml-holding-n-v-reports-transactions-under-its-current-share-buyback-program.html
[2] ASML's Investment Thesis Remains Promising, With The Long-Term AI Investment Cycle Well Balancing The Tariff Risks [2] https://seekingalpha.com/article/4801616-asml-celebrate-the-lowered-fy2025-guidance-rare-dip-buying-opportunity
[3] ASML Holding N.V. (ASML) Q2 2025 Earnings Call Transcript [3] https://seekingalpha.com/article/4801616-asml-celebrate-the-lowered-fy2025-guidance-rare-dip-buying-opportunity