ASML Q3 earnings report
Dutch semiconductor equipment giant ASML He sought to calm concerns about 2026 growth by warning on Wednesday that he expected a “significant” sales decline in China.
The company stated that it does not expect 2026 total net sales to be below 2025, and warned that it expects customer demand and sales in China next year to decrease significantly compared to 2024 and 2025.
Guidance was key for the firm after shares fell in July as it warned it might not be able to confirm growth in 2026 due to increasing macroeconomic and geopolitical uncertainty.
ASML’s performance relative to LSEG consensus estimates for the third quarter is as follows:
- Net sales: 7.516 billion euros versus 7.79 billion euros expected
- Net profit: 2.125 billion euros compared to 2.11 billion euros expected
ASML, which recently became Europe’s most valuable listed company, is among the companies in the semiconductor industry affected by both domestic export restrictions in its home base of the Netherlands and the tariff policy of the United States.
Analysts have opined that the chip giant will rise, with Morgan Stanley, UBS and Jefferies among the banks that have recently raised its stock. Expansion of AI chip foundries and an increase in semiconductor chip production in China are expected to support growth, Morgan Stanley analysts said. Meanwhile, ahead of the earnings release, UBS noted better-than-expected smartphone and PC sales and AI-led memory growth.
ASML is also expected to benefit from Nvidia and Intel’s $5 billion deal as demand for semiconductor equipment increases.
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