ASML Holding (NASDAQ:ASML) reported a fiscal first-quarter 2025 report on Wednesday.

The chip equipment company reported quarterly net sales of €7.74 billion ($8.14 billion), up 46.3% year over year. However, the quarterly net sales missed the analyst consensus estimate of €7.82 billion.

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The quarterly net bookings were €3.94 billion, up from €3.61 billion a year ago.

The gross margin expanded 300 bps Y/Y to 54.0%, as the ASP for EUV was higher due to more NXE:3800 versus NXE:3600 in the mix than anticipated. In the first quarter, ASML shipped its fifth High NA system and now has these systems at three customers.

GAAP EPS of €6.00 ($6.31) increased from €3.11 last year. The analyst consensus estimate was €5.79 ($5.76).

ASML held €9.10 billion in cash and equivalents. Its board proposed a 2024 dividend of €6.40 per ordinary share, a 4.9% increase Y/Y.

Outlook: ASML expects second-quarter net sales of €7.2 billion-€7.7 billion (versus analyst consensus estimate of €7.73 billion) and a gross margin of 50%-53%.

The company reiterated fiscal 2025 total net sales outlook of €30 billion-€35 billion (compared to the analyst consensus estimate of €32.41 billion) subject to the uncertainties. 

The company is on track to accomplish 2030 revenue of €44 billion-€60 billion and a gross margin of 56%-60% backed by AI and its business segments.

CEO Christophe Fouquet still noted strong Logic segment growth as customers ramp up their very advanced Logic node 2-nm. He expects the Memory segment to remain strong at par with 2024, backed by its customer activity. The Installed Base segment is growing backed by a more potent mix of EUV versus DUV.

ASML also received positive feedback regarding ASML’s Numerical Aperture (NA) products from the SPIE conference. Intel Corp (NASDAQ:INTC) said they had exposed over 30,000 wafers on their tool and stressed that High NA could help them simplify their process.

Samsung Electronics (OTC:SSNLF) said that High NA could reduce their cycle time in fact by 60%. Additionally, ASML shipped all its EXE:5000, and three of its customers have installed this tool.

CFO Roger Dassen outlined the potential fallout from tariffs imposed on complete system shipments into the U.S., parts and tools required for ASML’s field operations within the U.S., the material imports that ASML needs to manufacture in its U.S.-based facilities, and the reciprocal tariffs imposed by other countries on ASML’s shipments from the U.S.

Price Action: ASML stock is down 6.95% at $635.70 at last check Wednesday.

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