ASML Q2 Earnings Call: Strong Performance with Cautious Outlook

ASML Holding N.V. reported Q2 2025 earnings with strong financial performance, including total net sales of EUR 7.7 billion and net income of EUR 2.3 billion. EUV revenue growth is expected to be around 30% in 2025, driven by increased capacity and higher ASP. Gross margin reached a record 53.7% due to strong upgrade business and lower-than-expected tariffs impact. However, the company faces challenges in the China market, uncertainties surrounding tariffs, and potential growth slowdown in 2026.

ASML Holding N.V. reported its Q2 2025 earnings, showcasing strong financial performance with total net sales of €7.7 billion and net income of €2.3 billion. The company's gross margin reached a record 53.7%, driven by robust upgrade business and lower-than-expected tariffs impact. Quarterly net bookings totaled €5.5 billion, including €2.3 billion in EUV systems, reflecting a 40.8% sequential booking increase [3].

ASML's CEO, Christophe Fouquet, highlighted the company's technological advancements, including the shipment of the first TWINSCAN EXE:5200B system, which features improved productivity and overlay performance. This system delivers throughput of ≥175 wafers per hour at 50mJ/cm², demonstrating ASML's progress in EUV technology [2].

The company expects EUV revenue growth of around 30% in 2025, driven by increased capacity and higher ASP. For Q3 2025, ASML anticipates total net sales between €7.4 billion and €7.9 billion, with a gross margin between 50% and 52%. The full-year 2025 outlook projects a 15% increase in total net sales with a gross margin of around 52% [1].

However, ASML faces challenges in the China market and uncertainties surrounding tariffs. The company acknowledges increasing macroeconomic and geopolitical uncertainties, which may impact growth prospects for 2026. Despite these challenges, ASML remains committed to innovation and shareholder returns. The company paid a final dividend of €1.84 per ordinary share for 2024 and an interim dividend of €1.60 per share for Q1 2025. Additionally, ASML repurchased approximately 2.3 million shares during Q2 for a total amount of around €1.4 billion as part of its ongoing share buyback program [2].

References:
[1] https://www.asml.com/en/news/press-releases/2025/q2-2025-financial-results
[2] https://www.ainvest.com/news/asml-q2-2025-earnings-numbers-meet-expectations-narrative-falters-recommendation-sell-2507/
[3] https://www.stocktitan.net/news/ASML/asml-reports-7-7-billion-total-net-sales-and-2-3-billion-net-income-55bxqlc4zc3r.html