Dutch semiconductor equipment giant ASML on Wednesday looked to calm concerns over 2026 growth as it warned that it expects a "significant" sales decline in China.
Guidance was key for the firm after shares sank in July when it warned that while it would still prepare for growth in 2026, it could not confirm it at the time due to increasing macro-economic and geopolitical uncertainty.
On Wednesday, the firm said it does not expect 2026 total net sales to be below 2025 and added that it will provide more details on its outlook in January.
It also maintained its forecast for annual sales to increase around 15% this year in comparison to 2024, with a gross margin of around 52%.
Shares were last trading 3% higher and the stock is up 24% year to date.
The company continues to benefit from the AI boom with investments helping fuel orders of 5.4 billion euros ($6.28 billion) in the third quarter. However, CEO Christophe Fouquet warned that the firm expects customer demand and sales in China to decline significantly next year compared to 2024 and 2025.