ASML shares drop 6.5% after the chip giant says it can't confirm that it will grow in 2026

ASML connected Wednesday warned of the anticipation of nary maturation successful 2026, adjacent arsenic it bushed apical and bottommost enactment expectations for the 2nd quarter.

ASML's guidance for the existent 4th missed expectations portion it narrowed its ain forecast for the remainder of the year.

Shares of ASML dropped 6.5% successful aboriginal trading, soon aft European markets opened.

Like galore companies successful the semiconductor industry, ASML has been grappling with uncertainty created by U.S. tariff policy.

The institution forecast third-quarter gross of betwixt 7.4 cardinal euros and 7.9 cardinal euros, which was shy of marketplace expectations of 8.3 cardinal euros.

ASML said it expects full-year 2025 nett income to turn 15%, narrowing its guidance from a antecedently announced forecasts of betwixt 30 cardinal euros to 35 cardinal euros. That maturation number would connote 2025 gross of 32.5 billion.

However, the Dutch tech elephantine was little definite astir the outlook for 2026.

"Looking astatine 2026, we spot that our AI customers' fundamentals stay strong," ASML CEO Christophe Fouquet said successful a statement.

"At the aforesaid time, we proceed to spot expanding uncertainty driven by macro-economic and geopolitical developments. Therefore, portion we inactive hole for maturation successful 2026, we cannot corroborate it astatine this stage."

For the existent quarter, ASML bushed expert estimates connected apical and bottommost enactment and connected the cardinal nett bookings figure.

Here's however ASML did versus LSEG statement estimates for the 2nd quarter:

• Net sales: 7.7 cardinal euros ($8.95 billion) versus 7.52 cardinal euros expected
• Net profit: 2.29 cardinal euros vs 2.04 cardinal euros expected

In its ain erstwhile forecast issued successful April, ASML had said it expected second-quarter nett income of betwixt 7.2 cardinal euros and 7.7 cardinal euros. In a pre-recorded interrogation posted connected ASML's website, the company's Chief Financial Officer Roger Dassen said the bushed was owed to gross from upgrading presently deployed machines arsenic good arsenic tariffs having a "less negative" interaction than anticipated.

Analysts anticipated nett bookings — a cardinal indicator of bid request — would travel successful astatine 4.19 cardinal euros implicit the April-June stretch. ASML reported nett bookings of 5.5 cardinal euros.

ASML is 1 of the astir important semiconductor proviso concatenation companies successful the world. It makes utmost ultraviolet lithography (EUV) machines, which are required to manufacture the astir precocious chips successful the world, specified arsenic those designed by Apple and Nvidia.

Companies similar Intel and Taiwan Semiconductor Manufacturing Co. are customers of ASML.

ASML has benefitted from request related to chips required for artificial intelligence. Dassen said that this AI request is "a large operator for EUV."

The Veldhoven, Netherlands-headquartered institution has released its adjacent procreation EUV tools known arsenic High NA, which stands for precocious numerical aperture. These machines, which are larger than a double-decker autobus and can cost much than $400 cardinal each, are cardinal to ASML's aboriginal maturation plans.

ASML said it shipped 1 High NA instrumentality successful the 2nd quarter.