ASML Stock Tumbles After Growth Warning in Earnings Report. Tariffs Are Biting.

ASML shares were tumbling on Wednesday after the chip tool maker warned about growth next year. (Courtesy ASML)

ASML stock was diving on Wednesday after the Dutch chip-equipment manufacturer said tariff uncertainty meant it couldn’t guarantee growth in 2026.

The company’s U.S. shares dropped 9.9% to $741.83 in early trading. Its Amsterdam-listed shares were down 7.7%.

The selloff came after ASML reported its second-quarter earnings. Orders of 5.54 billion euros ($6.44 billion) for the company’s chip-making machines topped analysts’ targets, but CEO Christophe Fouquet warned that growth in 2026 was no longer guaranteed amid uncertainty on multiple fronts.

Consensus forecasts had previously called for around 7% growth next year. Jefferies equity sales specialist William Beavington said the investment bank expects ASML’s revenue will fall 2% in 2026, with its analysts having previously downgraded the stock to Hold from Buy.

ASML supplies the lithography machines that are essential for manufacturing semiconductors. Its customers include Taiwan Semiconductor Manufacturing , Samsung Electronics , and Intel .

“Looking at 2026, we see that our AI customers’ fundamentals remain strong. At the same time, we continue to see increasing uncertainty driven by macro-economic and geopolitical developments,” Fouquet said in an earnings release. “Therefore, while we still prepare for growth in 2026, we cannot confirm it at this stage.”

ASML also narrowed its guidance for this year. It’s now predicting sales to rise 15% to €32.5 billion, having previously forecast a range of €30 billion to €35 billion. Analysts are expecting sales of €32.36 billion, according to a FactSet poll.

U.S. tariffs have made it tough for European companies to stand by past profit guidance. President Donald Trump has threatened 30% levies on the European Union from Aug. 1, and the trading bloc is preparing retaliatory tariffs. That could make it more expensive for ASML to ship its chip tools to Intel and other American customers.

“Tariffs on ASML equipment would go against the US’s aim of self-sufficiency in chip manufacturing. Ultimately consumers will likely bear the cost,” wrote Moon Surana, portfolio manager at Harding Loevner, which owns ASML in its global equity strategy.

As of Tuesday’s closing bell, ASML’s U.S. shares were down 12% over the past year. The S&P 500 is up 10% over the same period.

Other companies that provide tools to chip makers were also suffering. Lam Research stock was down 4.1% in morning trading, KLA was falling 3.1%, and Applied Materials was dropping 3.8%.

Write to George Glover at george.glover@dowjones.com and Adam Clark at adam.clark@barrons.com