By Mauro Orru

ASML Holding is scheduled to report results for the second quarter on Wednesday. Here is what you need to know:

ORDERS FORECAST: The Dutch semiconductor-equipment maker is expected to report orders of 4.45 billion euros ($5.20 billion), according to consensus estimates by Visible Alpha. The forecast is below orders of 5.57 billion euros that ASML reported a year earlier, but above the 3.94 billion-euro figure from the first quarter of 2025.

ASML's orders can fluctuate significantly between quarters as they are heavily influenced by how much chip makers are willing to spend based on the demand trends they expect. The company said earlier this year that it would stop reporting quarterly orders as of 2026 because the metric doesn't necessarily reflect business momentum.

ASML's extreme ultraviolet lithography systems--used to print the most intricate layers on chips--should contribute 1.99 billion euros in orders.

Citi analysts estimated in a note to clients that ASML should post 5 billion euros in orders, slightly above consensus. Barclays Capital analysts estimated 5.3 billion euros in orders, with 2.3 billion euros of extreme ultraviolet lithography systems, including 10 tools for Taiwan Semiconductor Manufacturing Co.

SALES FORECAST: ASML should post quarterly sales of 7.54 billion euros, according to the consensus, above the 6.24 billion-euro figure from a year earlier and within a company guidance range between 7.2 billion euros and 7.7 billion euros.

GROSS PROFIT FORECAST: Gross profit--a closely watched metric for companies operating in the semiconductor industry--should come in at 3.89 billion euros, according to the consensus, above 3.21 billion euros that ASML reported a year earlier. ASML's gross margin is expected to have increased slightly to 51.6% from 51.5%, within company guidance between 50% and 53%.

NET PROFIT FORECAST: Net profit should amount to 2.01 billion euros compared with 1.58 billion euros in the same period a year earlier.

ASML shares have fallen more than 30% over the past 12 months. The company has been navigating uneven demand: strong appetite for artificial-intelligence chips stands in stark contrast with sluggish demand for legacy semiconductors found in cars, smartphones, laptops and other devices. ASML in October cut its sales forecasts for 2025, saying some areas of the semiconductor industry aside from AI were taking longer than expected to recover.

WHAT TO WATCH:

-- TARIFFS: Analysts and investors will be on the lookout for any remarks about tariffs. ASML Chief Financial Officer Roger Dassen said in April that tariffs could hit the company and the wider semiconductor industry in different ways if Washington were to impose levies on equipment or parts that ASML imports into the U.S. ASML sells its semiconductor-making machinery to Intel.

Earlier this year, the Trump administration opened a new investigation under Section 232 of the Trade Expansion Act of 1962 that could result in specific tariffs for semiconductors. Meanwhile, the president said the U.S. would charge a 30% tariff on goods from the European Union effective Aug. 1 as negotiations between Brussels and Washington continue.

The Section 232 investigation is likely to bring in unhelpful tariffs, risks of retaliation and major uncertainty for the industry, Barclays Capital analysts said.

-- GUIDANCE: ASML is forecasting between 30 billion euros and 35 billion euros in sales this year, a range it expects to grow to roughly 44 billion euros to 60 billion euros in 2030. ASML said in April that 2025 and 2026 would be growth years based on conversations with clients, although it didn't provide detailed guidance for 2026.

"We don't expect any change to this narrative, with AI and smartphone sustainability remaining the main swing factor for next year," UBS's Francois-Xavier Bouvignies wrote in a research note.

Write to Mauro Orru at mauro.orru@wsj.com

(END) Dow Jones Newswires

July 14, 2025 06:36 ET (10:36 GMT)

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