Semiconductor equipment supplier ASML beat earnings and revenue estimates last quarter, but shares fell amid newly-proposed export controls on chip sales to China.
Net sales were EU€8.77 billion, up from €7.74 billion year-over-year and above LSEG consensus estimates of €8.5 billion. Net income was €2.76 billion, rising from €2.36 billion and surpassing estimates of €2.5 billion.
“The semiconductor industry's growth outlook continues to solidify, driven by ongoing AI-related infrastructure investments. Demand for chips is outpacing supply,” said ASML president and CEO Christophe Fouquet.
“In the past months, our customers have increased their expected short- and medium-term demand for our products. ASML's order intake continues to be very strong as a result, and we are closely aligned with our customers to support their demand in a combination of delivery of new systems and performance upgrades of their installed base.”
ASML’s gross profit was €4.65 billion, compared with €4.18 billion one year ago. Its gross margin was 53%, down from 54%.
The company sold 67 new lithography systems, which are used to manufacture chips, last quarter. This is a decline from 73 units one year ago, though the number of used lithography systems sold climbed from four to 12.
The Chinese market represented 19% of lithography system sales last quarter, down from 36% in the prior quarter. A bipartisan group of United States lawmakers proposed new legislation last week that would further restrict China from buying chipmaking equipment from the U.S. and its allies.
The company raised its full-year forecast, however. It expects net sales for 2026 to be €36-40 billion, up from its previous guidance of €34-39 billion.
ASML (AMS: ASML) shares closed 4.2% lower at €1,230.00, while its U.S.-listed shares (NASDAQ: ASML) shed 2.4% to US$1,481.77. Its market capitalisation is $571.94 billion.
