ASML (ASML, Financial) shares dropped about 4% in premarket trading Wednesday after the company flagged growing uncertainty tied to U.S. trade tariffs, even as it held firm on its revenue guidance for 2025.
Chief Executive Christophe Fouquet said in a video statement that emerging tariff policies have created fresh unpredictability for the company, adding it remains unclear how these changes will ultimately affect the business. Despite that, Fouquet pointed to strengthening demand in artificial intelligence, saying some of this year's and next year's orders are already firmed up, with customer discussions suggesting growth for both 2025 and 2026.
Chief Financial Officer Roger Dassen outlined four key tariff-related challenges: shipments into the U.S., levies on imported equipment and materials used in U.S. operations, and reciprocal tariffs on American exports. He emphasized that ASML is actively working with partners across the supply chain to reduce potential fallout.
Net sales in the first quarter rose 46.3% year over year to €7.74 billion, but fell 16.4% from Q4 2024 and came in below expectations. Bookings totaled €3.94 billion, missing the €4.82 billion analyst forecast.
ASML maintained its full-year net sales guidance of €30 billion to €35 billion, and expects Q2 revenue between €7.2 billion and €7.7 billion.
China contributed 27% of total system sales in Q1, trailing South Korea at 40%. The U.S. and Taiwan each accounted for 16%.
ASML plans to declare a total dividend of €6.40 per ordinary share for 2024 and reported buying back approximately 4 million shares in Q1 for €2.7 billion.
