ASML Predicts Significant Sales Decline in China for 2026

Dutch technology leader ASML announced on October 11, 2023, that it anticipates a substantial decline in its sales in China for the year 2026. This forecast comes as the company reported stable net profits for the third quarter of 2025, reflecting no significant change compared to the same period last year.

In a statement, ASML’s CEO, Christophe Fouquet, noted, “We expect China customer demand, and therefore our China total net sales in 2026 to decline significantly compared to our very strong business there in 2024 and 2025.” This statement highlights the company’s growing concerns regarding its performance in the Chinese market.

ASML recorded net profits of 2.125 billion euros (approximately $2.5 billion) for the third quarter of 2025, a slight increase from 2.077 billion euros during the same quarter last year. The firm’s net sales for this period reached 7.5 billion euros, aligning with its previous forecast range of 7.4 billion euros to 7.9 billion euros. Fouquet emphasized, “Our third-quarter total net sales… were in line with guidance, reflecting a good quarter for ASML.”

Despite the positive performance in the latest quarter, ASML had previously expressed caution regarding future growth prospects. In July, the company indicated that geopolitical and trade tensions had created uncertainty for its near-term outlook. At that time, ASML could not guarantee profitability for 2026.

On a more optimistic note, Fouquet clarified that the company does not expect total net sales for 2026 to fall below those of 2025. He stated that further details regarding the outlook for next year would be provided in January 2024. This assurance comes as ASML navigates a challenging global landscape while maintaining a diverse workforce of 2,400 employees from over 100 different nationalities.

ASML is known for its production of advanced machines used in semiconductor manufacturing, positioning the company as a key player in the global tech industry. As it faces potential declines in one of its largest markets, the firm’s strategy and adaptability will be crucial for sustaining growth in the coming years.