Analyst Joel South stated that ASML stock should undoubtedly be bought before the US stock market opens on July 15th, as the company will release its second-quarter results before the US market opens on Wednesday and will almost certainly reiterate its upwardly revised full-year guidance, which the market currently underestimates.
There are three main reasons to buy ASML stock without hesitation:
1. Second-quarter catalysts are in full swing: ASML management raised its full-year 2026 revenue guidance to €36 billion to €40 billion during the first-quarter earnings call, with CFO Roger Dassen calling it a "very strong year." First-quarter 2026 earnings per share were $8.43, revenue was $10.34 billion, and gross margin was 53.0%, at the high end of the guidance range. Second-quarter revenue guidance is €8.4 billion to €9 billion.
2. The demand landscape is structural: ASML CEO Christophe Fouquet told investors that "supply will not meet demand for the foreseeable future," and that memory chip customers' "2026 capacity is fully sold out." The backlog of orders reached $45.06 billion by the end of 2025, while new orders in the fourth quarter totaled $15.28 billion.
3. Return on capital is accelerating: ASML launched a €12 billion share buyback program in January 2026, continuing until 2028, and increased its 2025 dividend by 17% to €7.50 per share. Free cash flow reached $12.81 billion in 2025.
