Top U.S. Defense Stocks to Watch According to Jefferies Analysis
Investing.com -- Dutch semiconductor equipment maker ASML Holding NV (AS:ASML) warned of a significant decline in China sales expected in 2026 compared with its business in the region during 2024 and 2025, despite reporting quarterly bookings above expectations on Wednesday.
The Dutch equipment maker posted quarterly bookings of €5.4 billion, slightly above analysts’ expectations of €5.36 billion.
"We do not expect 2026 total net sales to be below 2025. We will provide more details on our 2026 outlook in January," ASML Chief Executive Officer Christophe Fouquet said in a statement.
Shares of ASML rose over 3% as of 0744 following the announcement.
He also said that the company’s third-quarter net sales of €7.5 billion and gross margin of 51.6% were in line with guidance, calling it a solid quarter. Fouquet noted that lithography intensity is developing positively as EUV adoption accelerates, with continued progress on High NA EUV.
ASML maintained its full-year 2025 outlook, projecting sales growth of around 15% compared to 2024, with a gross margin of approximately 52%. The company expects fourth-quarter sales between €9.2 billion and €9.8 billion with a gross margin between 51% and 53%, indicating a strong finish to the year.
"These are results and outlook commentary which do not give too much ammunition to either bulls or bears in our view. But after such a strong rally and with valuations at 35x 2026, we believe these order trends and the lack of confidence in growth in 2026 are insufficient to drive up the stock much further," according to Jefferies.
The company also highlighted continued positive momentum around AI investments, noting this trend is extending to more customers in both leading-edge Logic and advanced DRAM segments.
An interim dividend of €1.60 per share will be paid on November 6, 2025. The company purchased approximately €148 million worth of shares in the third quarter under its current buyback program.