ASML Holding Q2 Earnings and Revenues Surpass Expectations

Core Insights - ASML Holding reported second-quarter 2025 earnings of €5.90 per share, a 47.1% increase year over year, exceeding Zacks Consensus Estimates by 12.8% [1][9] - Total net sales for the second quarter reached €7.69 billion, reflecting a 23.2% year-over-year growth and surpassing Zacks Consensus Estimate by 1.8% [1][9] Financial Performance - Segment-wise, ASML's Systems net sales were €5.596 billion, contributing 72.8% to total sales, with a growth of 17.5% from the previous year, driven mainly by logic and memory sectors [2] - The Services and Field segment reported net sales of €2.095 billion, accounting for 27.2% of total sales, up 41.4% year over year [2] - ASML's gross margin improved to 53.68%, an increase of 223 basis points from the prior year [2] Operating Expenses and Margins - Operating expenses were €1.47 billion, a 6.4% increase from the previous year, but as a percentage of sales, it decreased by 302 basis points to 19.05% [3] - The non-GAAP operating margin expanded to 34.64%, up 525 basis points year over year [3] Balance Sheet and Cash Flow - As of June 29, 2025, ASML had cash and short-term investments of €7.25 billion, down from €9.1 billion in March 2025 [4] - Inventories increased to €11.58 billion from €11.02 billion in the previous quarter, while accounts receivables rose to €4.996 billion from €4.59 billion [4] - Long-term debt was €3.698 billion, slightly up from €3.68 billion in the previous quarter, with a net negative cash flow of €1.854 billion [5] Guidance - For Q3 2025, ASML expects total net sales between €7.4 billion and €7.9 billion, with a gross margin forecast of 50% to 52% [6] - For the full year 2025, ASML anticipates total net sales growth of approximately 15% year over year, with a gross margin around 52% [7]