ASML Holding 2025 Q2 Earnings Strong Performance as Net Income Rises 45.1%

ASML Holding, ranked 29th by market capitalization, reported its fiscal 2025 Q2 earnings on July 15th, 2025. The company exceeded market expectations with its net income rising by 45.1% compared to the previous year. However, its guidance for the third quarter was lower than anticipated, potentially impacting investor sentiment. ASML maintained its full-year outlook for a 15% increase in net sales, although it flagged uncertainties for 2026 due to geopolitical and macroeconomic factors, which may have contributed to investor caution.

Revenue

ASML Holding reported a notable increase in total revenue for the second quarter of 2025, reaching $7.69 billion, a 23.2% rise from the $6.24 billion recorded in the same period of 2024. Net system sales contributed significantly, totaling $5.60 billion, while net service and field option sales added $2.10 billion. The combined efforts in these segments resulted in total net sales of $7.69 billion.

Earnings/Net Income

ASML Holding saw a substantial boost in earnings, with EPS climbing 47.1% to $5.90 in 2025 Q2, up from $4.01 in 2024 Q2. This growth in earnings reflects the company's strengthened profitability, as net income surged to $2.29 billion, marking a 45.1% increase from the prior year's $1.58 billion. The EPS performance indicates robust earnings results.

Price Action

The stock price of ASML Holding has edged up 0.01% during the latest trading day, climbed 3.64% during the most recent full trading week, and increased 4.96% month-to-date.

Post Earnings Price Action Review

The strategy of purchasing ASML shares following a revenue increase on the financial report release date and holding them for 30 days has shown moderate success over the past three years. This approach achieved a compound annual growth rate (CAGR) of 14.07%, demonstrating stable growth with minimal risk, as evidenced by a maximum drawdown of 0.00%. However, the investment's Sharpe ratio was relatively low at 0.35, signaling only modest risk-adjusted returns. Consequently, while the strategy provides a degree of stability in growth, investors may find the risk-adjusted performance less compelling compared to other investment opportunities.

CEO Commentary

Christophe Fouquet, CEO of ASML, remarked, “Our second-quarter total net sales came in at €7.7 billion, at the top end of our guidance. The gross margin was 53.7%, above guidance, primarily driven by higher upgrade business and one-offs resulting in lower costs. We see continued progress in litho intensity, particularly in DRAM, and the introduction of the TWINSCAN NXE:3800E reinforces that momentum. Meanwhile, EUV adoption is advancing as planned, including High NA. 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.”

Guidance

ASML expects third-quarter total net sales between €7.4 billion and €7.9 billion, with a gross margin between 50% and 52%. For the full year 2025, the company anticipates a total net sales growth of around 15% compared to 2024, implying revenue of approximately €32.5 billion. Additionally, R&D costs are projected at around €1.2 billion, while SG&A costs are expected to be approximately €310 million.

Additional News

ASML Holding has been actively executing its share buyback program, initially announced on November 10, 2022. During the week of July 7-11, 2025, the company repurchased approximately 90,860 shares at prices ranging from €666.53 to €687.46 per share, totaling around €61.5 million. This buyback initiative reflects ASML’s strategic commitment to returning capital to shareholders. Additionally, ASML announced an interim dividend of €1.60 per ordinary share, payable on August 6, 2025. These shareholder return strategies highlight ASML’s focus on enhancing value for its investors amidst evolving market conditions.