ASML Q3 Earnings Beat Expectations but China Warning Clouds Outlook
ASML's third-quarter earnings outperformed analyst forecasts with €7.5 billion in net sales and a robust 51.6% gross margin. Net income reached €2.1 billion, though revenue narrowly missed consensus estimates. The semiconductor equipment maker's Q4 guidance projects sales between €9.2-9.8 billion, signaling 15% annual growth potential.
Investor focus has shifted to the company's 2026 projections, which anticipate significant sales declines in China. This warning has introduced volatility into ASML's stock outlook, with market participants reevaluating positions. The company's €5.4 billion quarterly bookings, including €3.6 billion for EUV systems, demonstrate continued technological demand despite geopolitical headwinds.