KLA (KLAC) Company Report

KLA reported fiscal Q2 revenue of $3.3 billion (up ~7% YoY) and adjusted EPS of $8.85, topping consensus estimates.
On a GAAP basis, net income was $1.15 billion (EPS $8.68), alongside strong cash generation: operating cash flow of $1.37 billion and free cash flow of $1.26 billion.
Management guided Q3 revenue to roughly $3.35 billion and EPS near $9.08.
Shares dipped ~7% in after-hours trading as investor expectations had outpaced consensus and concerns over China local-sourcing rules and U.S. export restrictions emerged.

5 days ago

Morningstar

KLA reports Q2 2026 earnings results

KLAC

Earnings

Guidance Update

Share Buyback

Revenue of $3.3 billion, up 17% y/y; non-GAAP EPS $8.85 and GAAP EPS $8.68, each above guidance.
Gross margin 62.6%, operating margin 42.8%, and record free cash flow of $1.26 billion.
Advanced packaging systems drove $950 million in 2025 revenue (+70% y/y); service revenue reached $786 million in Q2 (+18% y/y).
Returned $797 million to shareholders in Q2 via $548 million in share buybacks and $250 million in dividends.
Q3 2026 outlook: revenue $3.35 billion ± $150 million, non-GAAP EPS $9.08 ± $0.78, gross margin 61.75% ± 1 pp.

5 days ago

Transcript

KLA reports Q2 2026 results and 2026 outlook

KLAC

Earnings

Guidance Update

Q2 2026 results: $3.3 B revenue; non-GAAP EPS $8.85, GAAP EPS $8.68; gross margin 62.6%, operating margin 42.8%
FY 2025: revenue +17% to $12.745 B, EPS +29%; gross margin 62.8%; free cash flow +30% to $4.4 B; $3 B returned to shareholders
Q3 2026 guidance: revenue $3.35 B ± $150 M; gross margin 61.75% ± 1 pp; non-GAAP EPS $9.08 ± $0.78, reflecting a 75–100 bp DRAM cost headwind
2026 market outlook: core WFE to low-$120 B and advanced packaging to $12 B (total mid-$130 B), with H2 growth accelerating; KLA expects to outpace the market

5 days ago

Transcript

KLA reports Q2 FY2026 results and issues Q3 guidance

KLAC

Earnings

Guidance Update

KLA delivered $3.3 billion in December quarter revenue, up 17% YoY; non-GAAP EPS was $8.85 and GAAP EPS was $8.68; gross margin stood at 62.6% with a 42.8% operating margin.
For full-year 2025, revenue grew 17% to $12.745 billion and EPS rose 29%; free cash flow increased 30% to $4.4 billion, and the company returned $3 billion to shareholders, including $797 million in the December quarter (share repurchases of $548 million and $250 million in dividends).
Guidance for the March quarter forecasts $3.35 billion ± $150 million in revenue, gross margin of 61.75% ± 1 pp, and non-GAAP EPS of $9.08 ± $0.78; planning tax rate is 14.5% for 2026.
KLA ended the quarter with $5.2 billion in cash and equivalents versus $5.9 billion in debt, generated $1.37 billion of operating cash flow, and anticipates mid-single-digit H1 2026 growth versus H2 2025 with acceleration in H2 2026 as process control intensity and advanced packaging drive market outperformance.

5 days ago

Transcript

KLA announces Q2 FY2026 earnings results

KLAC

Earnings

Guidance Update

Share Buyback

Revenue of $3.3 B, 62.6% gross margin, 42.8% operating margin, and net income of $1.2 B with non-GAAP EPS of $8.85 in the December quarter.
Record FY 2025 revenue of $12.74 B (+17% YoY) and free cash flow of $4.4 B (+30%), with 62.8% gross profit margin and EPS of $35.44.
Q3 FY 2026 guidance: $3.35 B ± $150 M revenue, 61.75% ± 1% non-GAAP gross margin, GAAP EPS $8.85 ± 0.78, non-GAAP EPS $9.08 ± 0.78.
CY 2025 capital returns include $3.94 B share repurchases, $983 M dividends paid, and a 16th consecutive dividend increase to $1.90/share.
December quarter free cash flow of $1.26 B (38% margin, 108% conversion), with $548 M share buyback and $250 M dividends.

5 days ago

Presentation

KLA Corp reports Q2 FY2026 results

KLAC

Earnings

Guidance Update

Share Buyback

KLA delivered $3.30 billion in total revenues, above the midpoint of guidance, with GAAP diluted EPS of $8.68 and non-GAAP diluted EPS of $8.85.
Generated $1.37 billion of operating cash flow and $1.26 billion of free cash flow in the quarter (last twelve months: $4.77 billion and $4.38 billion, respectively).
Returned $797.4 million of capital in Q2 and $3.01 billion over the last twelve months through dividends and share repurchases.
Provided Q3 FY2026 guidance: revenues of $3.35 billion ± $150 million, GAAP gross margin 60.62% ± 1%, non-GAAP gross margin 61.75% ± 1%, GAAP EPS $8.85 ± $0.78, and non-GAAP EPS $9.08 ± $0.78.

5 days ago

8-K

KLA reports Q2 FY2026 results

KLAC

Earnings

Guidance Update

KLA posted $3.30 billion in Q2 FY2026 revenues, with GAAP diluted EPS of $8.68 and non-GAAP diluted EPS of $8.85, all above guidance midpoints.
Operating cash flow was $1.37 billion for the quarter ($4.77 billion LTM) and free cash flow was $1.26 billion for the quarter ($4.38 billion LTM).
Returned $797 million of capital in Q2 and $3.01 billion over the last twelve months via dividends and share repurchases.
Q3 FY2026 guidance includes $3.35 billion ± $150 million in revenues, GAAP diluted EPS of $8.85 ± $0.78, and non-GAAP diluted EPS of $9.08 ± $0.78.

5 days ago

Press Release

KLA previews 2026 WFE growth and segment performance

KLAC

Guidance Update

KLA delivered mid-teens revenue growth and high-20% EPS growth in 2025, alongside share gains in the overall WFE market.
For 2026, KLA expects low- to mid-single-digit WFE growth in H1, with an acceleration into H2 driven by expanded leading-edge (including 2nm and N3) and high-bandwidth memory investments.
Its advanced packaging business reached $925 million in 2025 (up ~70% YoY), with 70% of that revenue from process control, as KLA adapts front-end tools for panel-level packaging.
China exposure is set to decline from ~40% of revenue in 2024 to the mid-20s percent in 2026, after a $300 million BIS Affiliate Rule impact, which KLA plans to reslot over the year.
The service business is growing 12-14%, is 75% contract-based, and supports incremental operating margins of 60-65%, providing a stable, high-visibility revenue stream.

Dec 3, 2025, 5:15 PM

Transcript

KLA forecasts modest WFE growth in early 2026, stronger second half at UBS tech conference

KLAC

Guidance Update

At UBS’s 2025 Global Tech & AI Conference, CFO Brian Higgins projected low–mid single-digit WFE growth in H1 2026, with stronger acceleration in H2 2026, driven by leading-edge design, large-die challenges, high-bandwidth memory, and advanced packaging demand.
The overall WFE market is estimated at $105–110 billion in 2025 with advanced packaging adding $11 billion; KLA anticipates a continued strong environment that could approach $150 billion by 2027.
KLA’s service revenue—75% contract-based—is growing 12–14%, providing stable, high-margin cash flow, with incremental operating margins around 60–65% and forecast gross margins near 62.5% for 2026.
China revenue exposure (41% in 2024) is expected to decline to the mid-20% range in 2026; a $300 million BIS-related deferral in late 2025 is slated to be reslotted, with China WFE down modestly but stabilizing.

Dec 3, 2025, 5:15 PM

Transcript

KLA CFO outlines 2026 outlook and growth drivers at UBS conference

KLAC

Guidance Update

2025 performance: KLA delivered mid-teens revenue growth and high-20% EPS growth, while increasing its share of worldwide fab equipment (WFE).
2026 outlook: Management expects low- to mid-single digit growth in H1 2026, accelerating into H2 2026, and views the next two years as a “pretty strong” WFE environment.
China exposure: China accounted for roughly mid-20% of revenue in 2026, with a $300 million BIS rule impact expected to be re-slotted over the year.
Advanced packaging: 2025 advanced packaging revenue reached $925 million, up about 70% year-over-year, with 70% coming from process control.
Service growth: Service revenue is growing 12–14%, driven by high uptime contracts and long system lifecycles, with incremental operating margins of 60–65%.

Dec 3, 2025, 5:15 PM

Transcript

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