logo
ASML's 2026 growth outlook hinges on second-quarter bookings

ASML's 2026 growth outlook hinges on second-quarter bookings

Reuters16-07-2025
VELDHOVEN, July 15 (Reuters) - Investors are hoping that ASML's (ASML.AS), opens new tab bookings are robust enough to support its 2026 growth ambitions when the world's biggest chip-making equipment supplier reports its second-quarter earnings on Wednesday.
The Dutch firm has lost around 30% in market value since peaking one year ago, reflecting investor concern over its growth prospects.
At an investor event last November, the maker of the EUV machine - the backbone of AI chipmaking - said it saw 2026 as a growth year but didn't specify how much growth it anticipated.
Analysts see the second quarter as a "make or break" period which will determine its outlook for 2026, considering delivery times typically take around 12 months.
"ASML would need to double our second-quarter order estimates (of 5.3 billion euros) to comfort our 2026 revenue forecast," Barclays analyst Simon Coles told Reuters.
Analysts, on average, expect second-quarter bookings to reach 4.44 billion euros, according to a consensus compiled by researcher Visible Alpha, and 21.3 billion euros for the full-year.
Hitting those forecasts depends largely on orders from the world's top contract chipmaker TSMC (2330.TW), opens new tab, analyst Marc Hesselink of ING said. The company, which is also ASML's top customer, is expected to order the tools it needs for its upcoming manufacturing process, N2, this year.
"We see a better-than-expected demand and order from TSMC and China players, but lower-than-expected demand and order from Intel and Samsung," said Kevin Wang, analyst at Mizuho.
Positive news on talks with clients over future orders would also offer reassurance that it will meet current market forecasts, said Hesselink.
ASML still has a long way to go in 2025 to fulfill booking expectations for its lithography systems, after net bookings, the industry's most closely watched figure, came in at 3.9 billion euro ($4.6 billion) in the first quarter, missing estimates, analysts say.
Its earnings will provide a gauge of the resilience of China's chipmakers, which have been buying lower-end ASML equipment not impacted by export restrictions. That demand helped the company beat first-quarter forecasts.
Last October, ASML projected Chinese orders would fall to a 20% share of all machine sales in 2025.
In fact, they constituted 27% of machine sales, steady from a quarter earlier. Analysts expect that trend to continue unless U.S. export curbs are further extended to apply to the older equipment.
($1 = 0.8552 euros)
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

SAP shares drop after it maintains outlook despite strong quarter
SAP shares drop after it maintains outlook despite strong quarter

Reuters

timea few seconds ago

  • Reuters

SAP shares drop after it maintains outlook despite strong quarter

BERLIN, July 23 (Reuters) - Shares in SAP ( opens new tab fell on Wednesday after the German software maker reported higher quarterly sales and earnings but held off on increasing full-year targets, which some investors had expected. SAP shares were down by 3.9% at 0730 GMT, after the company late on Tuesday reported higher sales, profitability and free cash flow in the second quarter, but maintained its outlook, citing "elevated levels of uncertainty and reduced visibility". "As we move into the second half, we remain cautiously optimistic, keeping a close eye on geopolitical developments and public sector trends," finance chief Dominik Asam said in the quarterly report. SAP still forecasts full-year operating profit in the range of 10.3 billion to 10.6 billion euros ($12.44 billion), compared to 8.15 billion a year ago. Deutsche Bank analysts said the reiterated targets left a margin for error as uncertainty surrounding Washington's tariffs slows decision-making among U.S. customers. For the second quarter, SAP reported an 83% year-on-year jump in its free cash flow, used to determine dividends to investors, to 2.36 billion euros, exceeding market expectations by about a billion. Operating profit rose by around a third to 2.57 billion euros, boosted by the company's 2024 restructuring programme, which it concluded in the first quarter. SAP announced the 2-billion-euro pivot towards artificial intelligence last year, either retraining employees or replacing them through voluntary redundancies. But some traders said results were still driven by SAP's old licences business. "The future cloud biz lagged expectations, giving the report a sour tone. Also, the outlook was just confirmed sending a somewhat cautious note," one local trader said.

Elon Musk is told to block children from viewing porn on X or face huge fine
Elon Musk is told to block children from viewing porn on X or face huge fine

Daily Mail​

timea few seconds ago

  • Daily Mail​

Elon Musk is told to block children from viewing porn on X or face huge fine

Elon Musk 's company X has been instructed to prevent children from accessing porn or face huge fines under a new crackdown in the UK. Media watchdog Ofcom is bringing in rules from Friday insisting that all firms hosting pornography online should have robust and 'highly effective' age checks. These are aimed at stopping anyone aged under 18 from accessing such content. Billionaire Musk, 54, the world's richest man, has been in charge of X - previously named Twitter - since 2022. He has faced criticism in recent weeks after one of the artificial intelligence brands he owns, xAI, launched a chatbot 'girlfriend' available to users as young as 12. Internet safety experts have warned it could be used to 'manipulate, mislead, and groom children'. Fines for non-compliance with the new Ofcom regulations could be up to $25million or 10 per cent of the platform's qualifying worldwide revenue, whichever is greater - with estimates suggesting as much as $270million for $2.7billion-revenue X. The crackdown is part of the Online Safety Act 2023 - a set of laws that protects children and adults online. Other threatened punishments include barring a social media company from operating in the UK. X, which officially has a 13-plus age limit for users, is said to be under scrutiny due to the volume of pornographic material shared on the site, the Telegraph reports. The Children's Commissioner for England Dame Rachel de Souza has previously warned many youngsters are more likely to see pornography on X than on dedicated adult sites. A study suggested 41 per cent of 16-to-21-year-olds told of viewing pornography on X , against 37 per cent for specialist adult sites - followed by 33 per cent doing so on Instagram, 32 per cent on Snapchat and 30 per cent on search engines. The new age restriction rules say Internet firms should ensure users submit ID or even have their face scanned, depending on what sites they access. Recommended measures include open banking, photo IDs, facial age estimation software and checks by credit card or mobile phone operators. And industry sources have highlighted three options for Musk's X ahead of the new system. The website could bar anyone aged below 18 from signing up, remove all pornographic content from the site or else introduce bespoke age checks for accounts or areas of the platform where such material is shared. A government insider was quoted as saying: 'If X or any other company that hosts pornography has not introduced highly effective age assurance by this Friday deadline, Ofcom has been clear that they will face enforcement action.' When contacted by MailOnline, an Ofcom spokesperson said: 'Society has long protected youngsters from things like alcohol, smoking and gambling. 'By Friday, all sites and apps that allow pornography - whether they're dedicated adult sites or social media apps - must use highly effective age checks to protect children from online material that's not appropriate for them. 'If companies fail to act, they should expect to face enforcement.' There has been criticism in recent days of xAI's new chatbot girlfriend named Ani, described a fully fledged, blonde-haired AI companion with a gothic, anime-style appearance. She has been programmed to act as a 22-year-old and engage at times in flirty banter with the user. Users have reported that the chatbot has an NSFW mode - 'not safe for work' - once Ani has reached 'level three' in its interaction, including the additional option of appearing dressed in slinky lingerie. The character is said to have a seductive computer-generated voice that pauses and laughs between phrases and regularly initiates flirtatious conversation. Ani was made available to use within the Grok app, which is listed on the App store and can be downloaded by anyone aged 12 and over. Those who have interacted with Ani since it launched earlier last week report Ani describes itself as 'your crazy in-love girlfriend who's gonna make your heart skip'. Ofcom said: 'We are aware of the increasing and fast-developing risk AI poses in the online space, especially to children, and we are working to ensure platforms put appropriate safeguards in place to mitigate these risks.' Matthew Sowemimo, associate head of policy for child safety online at the children's charity NSPCC, said: 'We are really concerned how this technology is being used to produce disturbing content that can manipulate, mislead, and groom children. 'And through our own research and contacts to Childline, we hear how harmful chatbots can be - sometimes giving children false medical advice or steering them towards eating disorders or self-harm. 'It is worrying app stores hosting services like Grok are failing to uphold minimum age limits, and they need to be under greater scrutiny so children are not continually exposed to harm in these spaces.' In its terms of service, Grok advised that the minimum age to use the tool is 13, while young people under 18 should receive permission from a parent before using the app.

Get £30 in free bets and £10 casino bonus with BOYLE Sports, plus new 2+ Early Payout on football
Get £30 in free bets and £10 casino bonus with BOYLE Sports, plus new 2+ Early Payout on football

The Sun

timea few seconds ago

  • The Sun

Get £30 in free bets and £10 casino bonus with BOYLE Sports, plus new 2+ Early Payout on football

NEW to BOYLE Sports? Well now's the perfect time to join because they've just launched an incredible welcome offer that's TWO good to ignore. Sign up today and receive £30 in free bets plus an extra £10 casino bonus. BOYLE Sports have also launched their exciting "2 Goals Ahead" football offer. That means if you back a team and they go 2 goals up at any stage of the match, you'll get paid out as a winner no matter what the final score is - and it's available on accas! BOYLE Sports welcome offer Not got a BOYLE Sports account? Now is the very best time to get one! Simply visit the BOYLE Sports website and register for your brand new account. Deposit at least a tenner and then place a tenner or more on any football betting market at odds of Evens or greater. Once that's settled, you will receive £30 in free bets and a £10 casino bonus. BOYLE Sports Early Payout - 2 goals ahead So what is Early Payout - 2 goals ahead? The 2 Goals Ahead offer allows YOU to back a football team in the match betting market, and if they go 2 goals up at any point during the 90-minute match, your bet will be settled as a winner immediately! The final result doesn't matter; your team is considered a winner if they go 2 goals ahead. And yes, you can place Singles, Multiples, and Accumulators on the 2 Goals Ahead markets. *18+. New UK customers (Excluding NI) only. £40 in FREE Bets (FB) as £30 in sports bets & a £10 casino bonus (CB). Min Deposit £10. Min stake £10. Min odds Evs. FB applied on 1st settlement of any qualifying bet. FB 7-day expiry. 1 FB offer per customer, household & IP address only. Account & Payment restrictions. 14 days to accept £10 CB, then active for 3 days. CB 5x wagering & max redeemable £100. Game restrictions apply. Cashed out/Free Bets won't apply. 30 days to qualify. T&Cs Apply 18+. Applies to bets placed on match betting ahead of kick off. Get paid out as a winner if your team goes 2 goals ahead even if they win, lose or draw. 90 mins only. Applies to Singles & Multiples. T&Cs apply.

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store