ASML (ASML, Financial) reported a significant increase in its first-quarter revenue, reaching EUR 7.74 billion compared to EUR 5.29 billion in the same period last year. This performance aligned with the company's expectations, propelled by a gross margin of 54.0%, which exceeded earlier projections. This improvement was largely attributed to a favorable mix of extreme ultraviolet (EUV) products and the achievement of specific performance milestones.
During the first quarter, ASML successfully delivered its fifth High NA system, now installed across three different clients. The company remains optimistic about growth in 2025 and 2026, supported by ongoing discussions with customers. However, recent tariff announcements have created uncertainty in the broader economic environment, which could impact future stability.
Artificial intelligence continues to play a pivotal role in driving growth within the industry, influencing market dynamics and creating variability in opportunities and risks. Looking forward, ASML anticipates second-quarter net sales between EUR 7.2 billion and EUR 7.7 billion, with gross margins ranging from 50% to 53%. The company projects research and development expenses of approximately EUR 1.2 billion and selling, general, and administrative costs around EUR 300 million.
For the full year, ASML expects total net sales to range between EUR 30 billion and EUR 35 billion, with a gross margin estimated between 51% and 53%. These forecasts are subject to the uncertain macroeconomic conditions previously highlighted.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 12 analysts, the average target price for ASML Holding NV (ASML, Financial) is $932.71 with a high estimate of $1,133.59 and a low estimate of $715.19. The average target implies an upside of 36.53% from the current price of $683.16. More detailed estimate data can be found on the ASML Holding NV (ASML) Forecast page.
Based on the consensus recommendation from 15 brokerage firms, ASML Holding NV's (ASML, Financial) average brokerage recommendation is currently 1.8, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for ASML Holding NV (ASML, Financial) in one year is $1073.29, suggesting a upside of 57.11% from the current price of $683.16. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the ASML Holding NV (ASML) Summary page.
