ASML Stock Plunges 17% on Q3 Earnings Miss and Lowered Outlook

ASML Holding (NASDAQ:ASML) shares fell sharply by over 17% intra-day today following the release of third-quarter results that missed analyst expectations and underwhelmed with forward guidance. The semiconductor equipment maker reported adjusted Q3 earnings of €5.28 per share, falling short of the €5.40 consensus estimate. Revenue for the quarter reached €7.47 billion, below the anticipated €7.9 billion yet reflecting a 19.6% increase year-over-year. A significant point of concern was ASML’s quarterly net bookings, which came in at €2.6 billion—substantially below the expected €5.39 billion.

For Q4, ASML projected revenue in the range of €8.8 billion to €9.2 billion, with gross margins between 49% and 50%. For fiscal year 2024, the company forecasted revenue around €28 billion. Looking further ahead to 2025, ASML adjusted its revenue outlook to €30 billion to €35 billion, the lower half of its prior guidance, with anticipated gross margins of 51% to 53%.

CEO Christophe Fouquet attributed the adjusted forecasts to a slower-than-expected market recovery. While the company sees strong potential in AI, other segments are lagging. He noted slower-than-expected ramps of new nodes within the Logic segment, leading to adjustments in lithography demand and fab timelines, particularly affecting EUV systems. In the Memory sector, ASML forecasts limited expansion, with a primary focus on AI-driven technology transitions.