ASML Holding reported first-quarter 2025 results with net bookings of €3.9 billion, missing expectations by €0.9 billion, and net sales of €7.7 billion, slightly below forecasts by €40 million. The company posted a gross margin of 54%, up 3 percentage points year-over-year, and an operating margin of 35%, up 9 percentage points year-over-year. Earnings per share stood at €6.00, beating estimates by €0.20. Despite the weaker-than-expected bookings and sales forecast, ASML maintained its full-year 2025 net sales guidance of €30 billion to €35 billion. The company highlighted ongoing uncertainty due to recently announced U.S. tariffs affecting the semiconductor sector, which have complicated forecasting and widened gross margin guidance for the second quarter to between 50% and 53%. ASML executives noted that the tariff situation remains dynamic with an unknown end state, impacting their ability to fully assess the financial effects amid U.S. chip reshoring efforts. Meanwhile, demand from China has been stronger than anticipated, with the company’s CFO indicating that Chinese sales now represent over 25% of net system sales, up from an initial estimate of around 20%. ASML’s shares declined by up to 8% following the earnings release and tariff concerns, reflecting market apprehension about the macroeconomic environment and tariff-related disruptions in the chip industry.