KLA (KLAC) Company Report

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

KLA Corp announces 2025 Annual Meeting results and cash dividend

KLAC

Proxy Vote Outcomes

Board Change

Dividends

At the Nov 5, 2025 annual meeting, all ten director nominees were elected to one-year terms with majority support.
Stockholders ratified PricewaterhouseCoopers LLP as the company’s independent auditor for fiscal year ending June 30, 2026.
On a non-binding advisory vote, shareholders approved the compensation of KLA’s named executive officers.
Board changes took effect with Emiko Higashi and Gary Moore not seeking re-election and Michael McMullen appointed Chair of the Compensation and Talent Committee.
The Board declared a $1.90 per share cash dividend, payable December 2, 2025 to shareholders of record November 17, 2025.

Nov 7, 2025, 9:30 PM

8-K

KLA reports Q1 FY2026 results and issues Q2 guidance

KLAC

Earnings

Guidance Update

Share Buyback

KLA reports Q1 FY2026 revenue of $3.21 B with non-GAAP diluted EPS of $8.81 and GAAP diluted EPS of $8.47
Gross margin of 62.5%, non-GAAP operating margin of 43.2%, net income of $1.17 B, and free cash flow of $1.07 B in the quarter
Capital returns included $545 M in share repurchases and $254 M in dividends in Q1; the quarterly dividend was raised 12% to $1.90/share, and a $5 B share buyback was authorized
Advanced packaging revenue is expected to exceed $925 M in calendar 2025 (≈70% YoY growth), and services revenue grew to $745 M (16% YoY) in Q1
Q2 FY2026 guidance: revenue $3.225 B ±150 M, gross margin 62% ±1 pp, operating expenses $635 M, non-GAAP EPS $8.70 ±0.78, GAAP EPS $8.46 ±0.78

Oct 29, 2025, 9:00 PM

Transcript

KLA reports Q1 2026 results

KLAC

Earnings

Guidance Update

KLA reported Q1 2026 revenue of $3.21 B and non-GAAP EPS of $8.81, with a 62.5% gross margin, all above guidance.
Cash flow from operations was $1.16 B and free cash flow $1.07 B; total capital returned was $799 M (including $545 M in share repurchases and $254 M in dividends).
Advanced packaging revenue is forecast to exceed $925 M in 2025 (+~70% YoY), and services grew to $745 M in Q1 (+16% YoY), reflecting higher process control intensity.
Q2 (December) guidance: $3.225 B ± $150 M revenue and $8.70 ± $0.78 non-GAAP EPS; expects 2025 WFE growth mid-to-high single digits and advanced packaging >20%.

Oct 29, 2025, 9:00 PM

Transcript

KLA reports Q1 2026 results

KLAC

Earnings

Guidance Update

Share Buyback

Revenue of $3.21 B and non-GAAP EPS of $8.81 (GAAP EPS $8.47); gross margin 62.5%, free cash flow $1.07 B
Ended Q1 with $4.7 B in cash vs $5.9 B debt; announced a 12% dividend increase to $1.90 /quarter (annualized $7.60) and a $5 B share repurchase authorization
Q2 FY2026 guidance: Revenue $3.225 B ± $150 M; gross margin ~62%; GAAP EPS $8.46 ± 0.78, non-GAAP EPS $8.70 ± 0.78
Reiterates plan to outperform WFE market with mid-high single-digit growth in 2025 and >20% advanced packaging growth; forecasts H1 2026 revenue flat to up vs H2 2025 with H2 2026 acceleration and assumes $300–350 M China export control headwind

Oct 29, 2025, 9:00 PM

Transcript

KLA reports Q1 fiscal 2026 results

KLAC

Earnings

Guidance Update

Share Buyback

KLA delivered $3.21 B revenue, $8.81 non-GAAP EPS, 62.5% gross margin, and 43.2% non-GAAP operating margin, each above guidance midpoints in Q1 FY 2026.
Advanced packaging revenue is expected to exceed $925 M in CY 2025, up ~70% year-over-year, driven by intensity gains and market share improvements.
Operating cash flow reached $1.066 B (12-month record); FCF $3.9 B at 31% margin; $799 M capital returns in the quarter (share buybacks $545 M, dividends $254 M), backed by a $5 B repurchase authorization and 12% dividend increase to $1.90/Q.
Q2 (Dec) guidance: $3.225 B ± $150 M revenue, ~62% gross margin, $8.70 ± $0.78 non-GAAP EPS, 59% foundry logic/41% memory mix, with a $300–$350 M China export control headwind in Q2 and CY 2026.

Oct 29, 2025, 9:00 PM

Transcript

KLA announces Q1 FY2026 results

KLAC

Earnings

Revenue of $3.21 billion, up 13% year-over-year, with gross margin of 62.5% and operating margin of 43.2%, delivering GAAP EPS of $8.47 and non-GAAP EPS of $8.81
Semiconductor Process Control remains the core driver at $2.90 billion (90% of revenue), growing 13% year-over-year
Generated $1.07 billion of free cash flow, achieving a 33% FCF margin and returned $545 million via share repurchases in the quarter
Maintained a strong balance sheet with $4.68 billion cash, $5.89 billion debt, and investment-grade ratings (Moody’s A2, S&P A-)

Oct 29, 2025, 9:00 PM

Presentation

KLA announces Q1 FY2026 earnings

KLAC

Earnings

Guidance Update

Total revenues of $3.21 billion; GAAP diluted EPS of $8.47 and non-GAAP diluted EPS of $8.81, each above guidance midpoints (Q1 FY2026).
Operating cash flow of $1.16 billion and free cash flow of $1.07 billion for the quarter; LTM operating cash flow $4.25 billion and free cash flow $3.88 billion.
Capital returns of $799 million for the quarter and $3.09 billion over the last twelve months, including share repurchases and dividends.
Q2 FY2026 guidance: revenues of $3.225 billion ± $150 million; GAAP gross margin 60.8% ± 1.0%; non-GAAP gross margin 62.0% ± 1.0%; GAAP EPS $8.46 ± $0.78; non-GAAP EPS $8.70 ± $0.78.
Commentary highlights double-digit Y/Y revenue and EPS growth and strong positioning in AI infrastructure markets.

Oct 29, 2025, 8:11 PM

8-K

Earnings Transcripts

Quarterly earnings call transcripts for KLA.

Q1 2026

Oct 29, 2025

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Q4 2025

Jul 31, 2025

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