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Amsterdam
WeeklyWAIT
Long termAVOID
ASML
ASML.AS
ASML HOLDING

Latest update

$1,598

Updated: Jul 16, 2026, 8:51 PM UTC

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Metrics

ASML Holding N.V. (ASML.AS) - Fundamental and Market Data Review

ASML continues to demonstrate strong business performance with solid revenue and net income growth. Profitability margins are robust, indicating effective operations. However, the latest quarter showed negative free cash flow, which warrants attention. The company maintains a light debt load with strong debt service capacity. Valuation remains elevated on a trailing basis but becomes more attractive on a forward-looking P/E. Share count is stable, and the overall shareholder return via dividends is modest.

Growth pace
How fast the underlying business is moving, quarter by quarter. Hover any tile for the plain-English meaning.

Revenue

The total dollars the company billed customers. When this number grows quarter after quarter, the business is finding more demand.

quarterly

Latest

$9.3B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

+6.4%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

+21.3%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Net income

What's left from revenue after paying every cost — employees, materials, taxes, interest. Sometimes called profit or 'the bottom line.'

quarterly

Latest

$2.9B

Q2 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

+5.8%

vs Q1 2026

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

+27.4%

vs Q2 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Free cash flow

The cash actually left in the bank after the company has paid for everything and reinvested in itself. Harder to fake than net income.

quarterly

Latest

-$2.6B

Q1 2026

The most recent reported figure, in the company's own currency and reporting cadence.

QoQ

-123.8%

vs Q4 2025

How much this quarter grew compared to last quarter. Useful for spotting acceleration or slowdown in real time.

YoY

vs Q1 2025

How much this quarter grew compared to the same quarter one year ago. Strips out seasonality — a slow holiday quarter looks worse QoQ but normal YoY.

CAGR

insufficient history

The smooth yearly growth rate that gets you from the starting value to the current value. A 100% CAGR over 3 years means the business tripled, on average, each year.

Quarterly revenue, net income & free cash flow
Bars show what the company actually reported each quarter. The growth chart below turns these into the QoQ / YoY pace the rest of this page uses.
Annual growth rate (YoY)
Year-over-year change in full-year totals. Strips out quarterly noise and seasonality so the multi-year trend is visible — not just the last 12 months.
Compound annual growth (CAGR)
The smooth yearly growth rate across each window. The "start → end" line shows the dollar value at the beginning and end of the window.
Metric3 yr2 yr1 yr
Revenue
+21.3%
$7.7B$9.3B
Net income
+27.4%
$2.3B$2.9B
Free cash flow
Valuation — P/E

P/E TTM

58.0×

Trailing twelve months. Today's price divided by the last year of actual earnings.

P/E NTM

32.3×

Next twelve months. Today's price divided by what analysts expect the company to earn over the coming year.

Balance sheet & valuation
The five numbers that decide whether the growth above is safe, sustainable, and reasonably priced. Descriptions on every tile — hover or scroll to read.

Profitability

Strong

Operating margin (and the wider return profile) tells you how efficiently each dollar of sales becomes profit. High and rising = pricing power; low or falling = the business is grinding.

Share count

Stable

Are the buybacks outrunning the stock-based comp? A shrinking share count means every existing share owns a bigger slice of future earnings.

Debt load

Light

Total debt against cash and earnings power (EBITDA). Light debt leaves room to invest and weather downturns; heavy debt shrinks the margin for error.

Debt service

Strong

Whether the cash the business generates easily covers its interest and loan payments. Strong here = no forced selling in a bad year.

Cash return at today's price

1.4%

Free cash flow divided by market cap — the cash yield you're getting for the price you pay. Above ~6% is rich, below ~3% is thin. P/E shown when the yield is too small to be useful.

What stands out
  • Revenue growth stands at 21.3% YoY, with Net Income growth at 27.4% YoY, signaling strong operational momentum.
  • Profit margins are exceptionally strong, with 30.1% profit margin, 37.1% operating margin, and 52.7% gross margin.
  • The latest reported Free Cash Flow for Q1 2026 was -$2.6B, a significant quarter-over-quarter drop, which is a key area to monitor.
  • Debt situation is healthy with a light debt load and strong debt service capacity (EBITDA $13.49B vs. Op cash $11.49B).
  • Valuation shows a high trailing P/E of 58.0x but a more reasonable forward P/E of 32.3x, suggesting anticipated future growth.
  • Share count is stable, and dividends offer a modest yield of 0.70%.
  • Earnings revisions show strong positive sentiment from analysts over the last 30 and 90 days.

Thesis

Why this read

While the overall trend remains positive and the stock has regained its short-term moving average, the proximity of the earnings report creates an immediate overhang. It's wise to let this catalyst pass and observe the market's reaction before making a new entry. The long-term thesis remains highly attractive, but tactical patience is key here.

Short-term thesis

Mixed90% conviction+5 ptsv1
Size small or stay away

The risk sleeve is too fragile to support aggressive exposure.

Long-term exposure

Avoid

The business or valuation backdrop is not ready for long-term conviction.

Entry window

Wait

The stock has recovered from its recent drop and is now trading above its daily 21-day average, signaling resumed upward momentum. However, an earnings report is due in 9 days, which presents event risk. Given the recent volatility and upcoming catalyst, it's prudent to wait on the sidelines for now to see how earnings are received and allow for potential new support levels to establish post-event.

Risk check

Fragile

The downside can widen quickly if this setup goes wrong.

Alignment

Mixed

Neither horizon fully wins, so size and patience matter.

What supports it

  • Sales and cash still support a long hold.
  • Price still looks reasonable against the business.
  • Balance sheet gives the thesis room to breathe.
  • Margins and returns still support the long hold.

What limits it

  • This needs smaller size or more patience.
  • Debt service looks stretched for current cash generation.
  • The stock is lagging the broad market by 4.7 points over the past month.
  • An earnings report is scheduled in 9 days, introducing significant event risk and potential short-term volatility.

Long-term thesis

The increasing silicon intensity of the digital economy, driven by AI, IoT, and high-performance computing, fundamentally requires more advanced and powerful chips. ASML is the sole enabler of the critical manufacturing processes for these future-generation semiconductors.

95opportunity90% thesis conf
Crossing Chasm5y horizon

Bottleneck Role

ASML holds a near-monopoly on the most advanced lithography equipment (EUV and High-NA EUV), essential for producing leading-edge semiconductors at 2nm and beyond. This makes them a critical, unavoidable bottleneck in the semiconductor manufacturing supply chain, as no viable alternative exists for this crucial step.

Consensus Blind Spot

The market often struggles to accurately value monopolistic infrastructure providers in rapidly growing, critical industries. Traditional valuation metrics may not fully capture ASML's long-term pricing power and the structural inelasticity of demand for its uniquely essential products, leading to underestimation of its sustained earnings power and total addressable market.

Demand Gap

The current trajectory of computational demand (especially from AI) far outstrips the semiconductor industry's capacity to produce chips at the required density and power efficiency without ASML's advanced lithography. This creates an ever-widening gap, which only ASML tools can bridge, ensuring a multi-year backlog and demand for their systems.

Demand to Equity Scenarios

Bear40% conf

Global economic slowdown reducing broader chip demand; geopolitical shifts severely curtailing trade, or major setback in AI scaling.

Demand

Earnings

-25%

Equity implication

-35%

Reduced capital expenditure by chip manufacturers, deferred equipment orders.

Base80% conf

Continued strong demand for AI chips; steady adoption of next-gen nodes driven by competitive chip design and ongoing digital transformation.

Demand

Earnings

+30%

Equity implication

+45%

Sustained high utilization of current EUV tools and robust orders for new and High-NA EUV systems.

Bull60% conf

Explosive, sustained growth in AI; faster-than-expected transition to 2nm and 1nm nodes; geopolitical incentives for domestic chip production accelerating fab build-outs globally.

Demand

Earnings

+60%

Equity implication

+80%

Significant acceleration in new orders and average selling prices for advanced lithography systems, pushing capacity limits.

Dependency Chain

  1. 1Global digital transformation, AI, IoT, and HPC demand
  2. 2Necessitates advanced, smaller, more powerful semiconductors
  3. 3Requires leading-edge manufacturing nodes (2nm, 1nm and beyond)
  4. 4This relies entirely on Extreme Ultraviolet (EUV) and High-NA EUV lithography
  5. 5ASML is the exclusive supplier of this lithography technology
  6. 6Leading to inelastic demand and pricing power for ASML's equipment
  7. 7Drives ASML's revenue, earnings, and ultimately equity repricing

Repricing Triggers

  • Higher-than-expected order backlog and average selling prices for High-NA EUV systems.
  • Clear guidance from ASML on acceleration in future node transition (e.g., 2nm/1nm).
  • Positive commentary from major chipmakers (TSMC, Intel, Samsung) on increasing EUV tool purchases.
  • Continued strong earnings reports and upward revisions to future guidance.
  • Confirmation of successful ramp-up of High-NA EUV production and shipments.

Must be true

  • ASML maintains its technological lead and near-monopoly in advanced lithography.
  • Demand for advanced semiconductors continues to grow, driven primarily by AI and HPC.
  • No unforeseen geopolitical conflicts severely disrupt the global semiconductor supply chain or ASML's operations.
  • Chipmakers continue to invest heavily in next-generation manufacturing capabilities.

Thesis broken if

  • Emergence of a viable alternative lithography technology that challenges ASML's dominance.
  • Significant and sustained reduction in capital expenditure by leading semiconductor foundries.
  • ASML losing market share in advanced lithography equipment or experiencing sharp price competition.
  • Persistent and worsening geopolitical tensions that directly impede ASML's ability to sell or ship equipment globally.
  • Long-term decline in profitability margins or free cash flow trend.

History

What changed

Since the previous run · 11 days ago
Prior call was neutral

Signal

BUYBUY

Conviction

85%85%0 pts

Long term

AvoidAvoid

Stock

$1516.60$1598.40+5.4%

Added since last run

8
  • The stock is trading above its daily and weekly key moving averages, indicating a strong underlying trend.
  • Positive price action today (up 3.16%) suggests buyers are returning after the temporary correction.
  • High relative strength against SPY and sector over the longer term points to outperformance.
  • Earnings revisions are overwhelmingly positive, with no negative revisions in the last 30 days.
  • An earnings report is scheduled in 9 days, introducing significant event risk and potential short-term volatility.
  • Recent quarter showed negative free cash flow, which, while potentially temporary, bears watching.
  • Valuation remains high on a trailing P/E basis, which could limit immediate upside from current levels.
  • Volume contracted with last week's pullback, but today's rebound volume is still below average, suggesting a cautious return of buyers.

No longer flagged

0

Nothing dropped this run

Model's reflection on the prior call

The prior assessment correctly identified the extended nature of the stock and wisely recommended waiting for stabilization and a retest of support. While the stock initially saw minimal movement, the subsequent rally confirms the underlying strength and the temporary nature of the pullback, making the 'WAIT' call appropriate for managing immediate entry risk.

Analysis timeline
6 runs

Jul 16, 2026

Latest

Updated Jul 16, 2026, 8:51 PM UTC

WeeklyWAIT
Long termAVOID
Confidence85% · High

Price at review

$1,598

The stock has recovered from its recent drop and is now trading above its daily 21-day average, signaling resumed upward momentum. However, an earnings report is due in 9 days, which presents event risk. Given the recent volatility and upcoming catalyst, it's prudent to wait on the sidelines for now to see how earnings are received and allow for potential new support levels to establish post-event.

Jul 7, 2026

Updated Jul 7, 2026, 2:17 PM UTC

WeeklyWAIT
Long termAVOID
Confidence85% · High

Price at review

$1,517

The stock has experienced a significant downturn, now trading below its daily 21-day average, but remains well above its weekly average. Volume contracted with the recent drop, which hints at less conviction in the selling than the price action would suggest. Given the extended nature and recent price volatility, waiting for more stability or a retest of support levels makes sense before committing new capital, even with a strong underlying trend.

Jun 18, 2026

Updated Jun 18, 2026, 9:42 AM UTC

WeeklyWAIT
Long termAVOID
Confidence85% · High

Price at review

$1,670

ASML has seen a significant price surge, pushing it considerably above its short-term and medium-term moving averages. While the underlying trend is strong and upward, the stock is currently quite extended. This suggests a potential for a brief pause or a shallow pullback before the next leg higher. For those looking to increase their position, waiting for a better entry point with less immediate risk of a minor correction makes sense.

Jun 11, 2026

Updated Jun 11, 2026, 12:58 AM UTC

WeeklyWAIT
Long termWATCH
Confidence85% · High

Price at review

$1,507

The stock is consolidating near its recent highs, indicating that the long-term upward trend is strong, but a short-term pause or a slight dip is possible. Wait for a clearer entry point for new capital.

Jun 3, 2026

Updated Jun 3, 2026, 10:22 PM UTC

WeeklyWAIT
Long termWATCH
Confidence82% · High

Price at review

$1,485

The stock hit my target resistance faster than expected; expect a period of sideways churning or a small dip.

May 27, 2026

Updated May 27, 2026, 6:54 AM UTC

WeeklyWAIT
Long termWATCH
Confidence85% · High

Price at review

$1,390

The recent surge has left the price too far above its average support levels. It is better to wait for a temporary cooling period or a sideways move before starting new positions.