Shares of ASML (NASDAQ: ASML) fell 7% on Wednesday after the semiconductor equipment maker reported first-quarter 2025 results that met expectations on revenue and margin but included softer-than-anticipated bookings and a cautious near-term outlook.
Total net sales for the quarter reached €7.74 billion, broadly in line with company guidance and consensus estimates. Gross margin exceeded expectations at 54%, supported by a favorable product mix.
Net income reached €2.36 billion, with earnings per share of €6. However, net bookings for the quarter totaled €3.94 billion, falling 17% below the consensus forecast of €4.74 billion. Of the total, €1.2 billion was attributed to EUV system orders, covering both low and high numerical aperture models.
The cyclical nature of the semiconductor equipment industry was reflected in the quarter-over-quarter decline in sales and shipments. Total revenue dropped from €9.26 billion in Q4 2024, while system shipments decreased to 73 new units and 4 used systems, compared to 119 and 13, respectively, in the previous quarter.
ASML guided for Q2 2025 revenue between €7.2 billion and €7.7 billion. The midpoint of €7.45 billion fell short of consensus expectations of €7.8 billion. The company also projected a gross margin range of 50% to 53%, with the midpoint slightly below market forecasts.
Despite near-term softness, ASML (NASDAQ: ASML) reiterated its full-year 2025 guidance of €30 billion to €35 billion in net sales and a gross margin range of 51% to 53%, consistent with its previous outlook. Management also reaffirmed expectations for growth to resume in 2026.
