Core Viewpoint - ASML reported strong Q2 2025 results with revenue and gross margin exceeding market expectations, but concerns remain regarding future orders and guidance adjustments [1][7][9]. Financial Performance - Revenue for Q2 2025 was €7.7 billion, a 23.2% year-over-year increase, surpassing market expectations of €7.5 billion [1]. - Gross margin reached 53.7%, exceeding the company's guidance of 50-52%, driven by an increase in service revenue and lower-than-expected tariff impacts [1]. - Net profit for the quarter was €2.3 billion, a 45% year-over-year increase, resulting in a net profit margin of 30% [1][6]. Business Segments - Lithography system revenue was €5.6 billion, up 17.5% year-over-year, while service revenue was €2.1 billion, up 41.4% [1]. - EUV and ArFi systems accounted for nearly 91% of lithography system revenue, with EUV revenue around €2.5 billion and ArFi revenue approximately €2.3 billion [2][3]. Regional Performance - Taiwan was the largest revenue contributor, accounting for 35% of total revenue, approximately €2.7 billion, followed by mainland China at 27%, contributing around €2.1 billion [4]. Order Metrics - Net order intake rose to €5.54 billion, a 41% quarter-over-quarter increase, indicating a recovery in customer sentiment [4][7]. - The company’s order performance exceeded market expectations, which were set between €4.5 billion and €4.8 billion [7]. Future Guidance - For Q3 2025, ASML expects revenue between €7.4 billion and €7.9 billion, below market expectations of €8.2 billion [5][9]. - The full-year revenue guidance was adjusted to approximately €32.5 billion, reflecting a year-over-year growth of around 15%, indicating potential revenue decline in Q4 [9][10]. Market Concerns - Despite positive quarterly results, market concerns persist regarding tariff uncertainties, budget constraints from major clients like Samsung and Intel, and potential risks in the Chinese market [10][11]. - The overall sentiment suggests that while ASML remains a leader in the EUV market, short-term challenges could impact stock performance [10].