GoKawiilASML stock fell 6% on Wednesday despite raising its sales forecast for 2026 and beating first-quarter revenue and profit expectations.
The sell-off comes as the Dutch firm faces tightening restrictions on export controls, which caused a drop in the percentage of net sales to China.
Here's how ASML did versus LSEG consensus estimates for the first quarter:
Net sales: 8.8 billion euros ($10.4 billion) versus 8.5 billion euros expected
Net profit: 2.8 billion euros versus 2.5 billion euros expected
The company previously forecast that its first-quarter sales would be between 8.2 billion euros and 8.9 billion euros.
ASML said it now sees 2026 net sales to be between 36 billion euros and 40 billion euros, compared to a previous forecast of 34 billion euros to 39 billion euros.
The company makes high-end equipment necessary for manufacturing microchips, with its most advanced extreme ultraviolet lithography, or EUV, machines costing upwards of $400 million.
While ASML has never been allowed to sell EUV machines to China, it has long sold its lower-end deep ultraviolet, or DUV, chipmaking machines there.
Now that's poised to change. Last week, a bipartisan group of U.S. lawmakers proposed a bill that would cut off ASML's sale of DUV machines to Chinese chip companies and impact its already shrinking sales there. That law still needs to work its way through the U.S. legislative process.
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