Financial Data and Key Metrics Changes - Revenue for Q2 2025 was EUR 7.7 billion, which was at the high end of guidance and included revenue recognition for one High NA tool [1][2] - Gross margin came in at 53.7%, above guidance, driven by installed base revenue and one-off cost benefits [1][3] - Order intake for the quarter was EUR 5.5 billion, including EUR 2.3 billion for EUV [4] - Net income for the quarter was EUR 2.3 billion [4] - Guidance for Q3 2025 expects revenue between CHF 7.4 billion and CHF 7.9 billion, with a gross margin between 50% and 52% [5] Business Line Data and Key Metrics Changes - Installed base business is expected to see a 20% increase, driven by strong upgrade revenue in the first half and sustained service revenue in the second half [11][12] - EUV business is projected to grow approximately 30% due to increased capacity demands from customers [10][12] - Deep UV and application business is expected to remain stable compared to last year [12] Market Data and Key Metrics Changes - Artificial intelligence is identified as the main growth driver for both logic and memory sectors [6] - Revenue from China is expected to exceed 25%, aligning with the company's backlog [6] - The semiconductor market remains strong, with long-term opportunities driven by advanced logic and memory needs [30][31] Company Strategy and Development Direction - The company is focusing on enhancing its EUV technology and expanding its capacity to meet customer demands [9][22] - There is an emphasis on mitigating tariff impacts and navigating macroeconomic uncertainties [20][21] - Long-term revenue forecast for 2030 is projected between EUR 44 billion and EUR 60 billion, with a gross margin between 56% and 60% [32] Management's Comments on Operating Environment and Future Outlook - Management acknowledges increasing uncertainty due to macroeconomic and geopolitical factors, including tariffs [7][30] - The fundamentals for AI customers remain strong, indicating potential growth despite short-term uncertainties [7][30] - The company is preparing for growth in 2026, with a focus on advanced nodes and EUV technology [9][30] Other Important Information - The company executed a share buyback worth EUR 1.4 billion and paid a final dividend of EUR 1.84 for the last fiscal year [29] - An interim dividend of EUR 1.6 is expected to be paid in Q3 2025 [29] Q&A Session Summary Question: Can you provide guidance on Q3? - Guidance for Q3 expects revenue between CHF 7.4 billion and CHF 7.9 billion, with a gross margin between 50% and 52% [5] Question: What are the short-term market dynamics? - AI is the main growth driver for logic and memory, with strong customer investments in advanced nodes [6] Question: How does the company view the impact of tariffs? - The company is assessing both direct and indirect effects of tariffs and is working to mitigate their impact [20][21] Question: What is the long-term outlook for the semiconductor market? - The semiconductor market remains strong, with significant opportunities driven by AI and advanced technology needs [30][31]