Semiconductor equipment company ASML saw a decline in sales and income last quarter, but has forecast 2026 total net sales will not be below 2025’s despite a likely fall in demand in China.
Net sales were EU€7.52 billion (US$8.74 billion), down from €7.69 billion year-over-year and below LSEG estimates of $7.79 billion. Net income was $2.13 billion, falling from €2.29 billion but above estimates of $2.11 billion.
“Our third-quarter total net sales of €7.5 billion and gross margin of 51.6% were in line with our guidance, reflecting a good quarter for ASML,” said ASML CEO Christophe Fouquet.
Lithography chipmaking systems have developed positively as extreme ultraviolet lithography technologies are adopted, said Fouquet, and companies’ investments in artificial intelligence have remained strong.
“On the other hand, we expect China customer demand, and therefore our China total net sales in 2026, to decline significantly compared to our very strong business there in 2024 and 2025.”
The company projects a net sales increase of around 15% across 2025, and does not expect 2026’s sales to be below 2025’s. It predicts fourth quarter sales will be €9.2-9.8 billion.
ASML will not be able to sell its most advanced systems in China due to tightening United States export restrictions. While China has also added new export controls on rare earth minerals, ASML said this would not affect the company in the short-term.
Gross profit was €3.88 billion, falling from €4.13 billion. Basic earnings per share decreased from €5.90 to €5.49.
ASML reported €5.40 billion in net bookings, down from €5.54 billion. It sold 66 new lithography systems during the quarter, stable from 67 sales one year ago.
ASML’s (NASDAQ: ASML) share price closed at US$1,009.81, up from its previous close at $983.18. Its market capitalisation is $390.43 billion.
Related content
