European chipmaker ASML Holding (ASML) has reported mixed financial results and issued weak guidance as it struggles with uncertainty caused by U.S. tariffs and trade tensions.
The Dutch company, which has a near monopoly on the equipment and machines needed to make the world’s most advanced microchips, said tariffs are having an immediate impact.
ASML reported sales of €7.74 billion euros ($8.81 billion U.S.) for this year’s first quarter, which was just below analysts’ forecasts of €7.77 billion.
The company’s profit rose to nearly €2.36 billion, up 93% from €1.22 billion a year earlier and ahead of Wall Street forecasts.
ASML’s net bookings in the first quarter totaled €3.94 billion, down substantially from fourth-quarter 2024 bookings of €7.09 billion.
The company shocked the market earlier when it cut its projection for 2025 sales to a range of €30 billion to €35 billion, well below previous estimates.
For the current second quarter, ASML said it now expects sales of €7.2 billion to €7.7 billion and a gross margin between 50% and 53%.
That outlook is below analysts’ second-quarter forecast of €7.80 billion. ASML said its guidance range was larger than usual due to ongoing uncertainty surrounding U.S. import tariffs.
“The recent tariff announcements have increased uncertainty in the macro environment and the situation will remain dynamic for a while,” said ASML Chief Executive Officer (CEO) Christophe Fouquet in the company’s earnings statement.
Like most European companies, ASML is grappling with U.S. President Donald Trump’s 10% minimum tariff imposed on goods from nearly all foreign countries.
The American-listed shares of ASML, which trade on the Nasdaq exchange, have declined 30% over the last 12 months to currently trade at $683.16 U.S. per share.
