16-07-2025
Is ASML Stock a Buy Ahead of Q2 Earnings?
Dutch semiconductor services company ASML (ASML) is set to release its Q2 earnings report this week. This has some investors wondering whether it's a good idea to buy shares of ASML stock beforehand.
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What Wall Street Expects
Wall Street is expecting ASML to announce quarterly earnings of $5.94 per share, up 37.5% compared with the same period last year. Revenues are projected to reach $8.55 billion, increasing 27.2% from a year ago.
Will ASML be able to beat these estimates? As one can see below, it has a very strong track record of doing just that in recent times.
Key Issues Ahead of Earnings
ASML said at an investor event last November that 2026 would be a growth year for the business. As the months have gone on, investor confidence in that prediction has grown.
The stock's share price has dropped 24% over the last twelve months, but is up 17% since the start of the year.
In its first quarter the group reported revenue of €7.74 billion, up from €5.29 billion in the same period last year. However, net bookings of €3.94 billion missed analyst forecasts of €4.89 billion. Its net profit was €2.36 billion, versus forecasts of €2.3 billion.
At the time the ASML chief executive Christope Fouquet warned that President Trump's tariffs had created a new uncertainty for the economy and 'our potential market demands.'
Indeed, chip export restrictions to China mean its customers there have been buying lower-end ASML equipment.
There are also concerns over a ramp up in European regulation on the AI and digital sector through measures such as the AI Act.
Analysts, on average, expect second-quarter bookings to reach €4.44 billion, and €21.3 billion for the full-year.
Marc Hesselink, analyst at ING, believes that hitting those forecasts depends largely on orders from the world's top contract chipmaker TSMC (TSM). 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 (INTC) and Samsung,' added Kevin Wang, analyst at Mizuho.
Is ASML a Good Stock to Buy Now?
