ASML Forecasts Uncertain 2026 Growth, Leading to an 11% Drop in Stock
Dutch chip equipment titan, ASML, has sent ripples through the technology sector with its warning that it “cannot confirm” growth for 2026, despite posting strong Q2 results.
The company reported €7.7 billion in sales and €2.3 billion in net income for the second quarter, surpassing analyst expectations. However, CEO Christophe Fouquet has attributed the cautious 2026 outlook to “increasing uncertainty driven by macro-economic and geopolitical developments”.
Following the announcement, ASML shares plummeted by 11.4%, pulling down European tech stocks with it.
ASML, which holds a monopoly on extreme ultraviolet (EUV) lithography machines – essential for advanced chip manufacturing – has revised its full-year 2025 guidance to 15% growth from a previous range of 30-35 billion euros.
The warning comes amidst headwinds faced by the semiconductor industry due to U.S. tariff policies and global trade tensions.
- The machines, which cost over $400 million each, are crucial for AI chip production and represent ASML’s path to future growth.
- Despite the uncertainty, ASML remains optimistic about long-term demand driven by AI applications.
Source: CNBC