Semiconductor equipment giant ASML on Wednesday beat estimates for the second quarter. But its disappointing guidance sent ASML stock tumbling.
The Dutch company earned the equivalent of $6.84 a share on sales of $8.92 billion in the June quarter. Analysts polled by FactSet had expected ASML to earn $6.10 a share on sales of $8.77 billion. In the year-earlier period, ASML earned $4.38 a share on sales of $6.82 billion, FactSet said. ASML reports financial results in euros.
For the third quarter, ASML predicted sales of 7.65 billion euros ($8.88 billion), based on the midpoint of its guidance. But analysts were modeling 8.26 billion euros ($9.6 billion).
The company is now targeting full-year sales growth of 15%, vs. the consensus estimate of 26.9%.
"Looking at 2026, we see that our AI customers' fundamentals remain strong," Chief Executive Christophe Fouquet said in a statement. "At the same time, we continue to see increasing uncertainty driven by macroeconomic and geopolitical developments. Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage."
On the stock market today, ASML stock fell 8.3% to close at 754.45.
"ASML did not confirm a view for growth in calendar 2026 and (that) could impact sentiment near term," TD Cowen analyst Krish Sankar said in a client note. Still, he reiterated his buy rating on ASML stock.
ASML makes advanced lithography equipment for etching tiny circuits onto semiconductors. It is the world's only manufacturer of extreme ultraviolet (EUV) lithography equipment.
ASML's top-of-the-line equipment is used to produce cutting-edge chips for artificial intelligence applications.
Since hitting a 52-week low of 578.51 on April 7, ASML stock had been on the upswing.
Further, ASML stock is on the IBD Tech Leaders list.
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