ASML Stock Falls 8% On Weak Guidance

The stock of ASML (ASML) is down 8% after the Dutch semiconductor company warned that it might not register any growth in 2026.The grim warning was made as the European technology giant issued second-quarter financial results that beat Wall Street expectations on both the top and bottom lines.ASML reported sales of 7.7 billion euros ($8.95 billion U.S.), which was ahead of the 7.52 billion euros that analysts had expected.The company’s net profit of 2.29 billion euros also beat forecasts of 2.04 billion euros. Unfortunately, the positive print is being overshadowed by weak guidance for the current quarter and leading into next year.ASML forecast revenue in the current third quarter of between 7.4 billion euros and 7.9 billion euros, which was below market expectations of 8.3 billion euros.For all of 2025, the company said that it expects net sales to grow about 15%, narrowing its guidance from a previous forecast of between 30 billion euros to 35 billion euros. Forecasting out to 2026, ASML is even less certain about what to expect. “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,” wrote the company in its earnings release.Like many companies in the semiconductor industry, ASML has been grappling with uncertainty created by U.S. tariff and trade policies.ASML remains one of the most important semiconductor supply chain companies in the world. It makes extreme ultraviolet lithography (EUV) machines that are necessary to manufacture the most advanced microchips, such as those designed by Nvidia (NVDA).Companies such as Taiwan Semiconductor Manufacturing Co. (TSM) are customers of ASML.Prior to today (July 16), ASML’s stock had declined 23% over the past 12 months to trade at $823.02 U.S. per share.