KLA Corporation Earnings Recaps
Q3 2026
Apr 30, 2026
Shares of KLA fell 3.2% after earnings as investors reacted to higher-than-expected operating expenses, which pressured margins despite revenue and EPS coming in above the midpoint of guidance.
Key takeaways
- Revenue was $3.415 billion, up 4% sequentially and 11% year-over-year, topping the guidance midpoint.
- Non-GAAP diluted EPS reached $9.40, also above guidance, with GAAP EPS at $9.12.
- Gross margin was 62.2%, exceeding guidance midpoint by 45 basis points; however, operating expenses came in higher than expected due to materials timing and reserve adjustments.
- Operating margin was 42.6%, and free cash flow for the quarter was $622 million, with $875 million in capital returned to shareholders.
- Despite achieving leadership in process control for advanced wafer-level packaging and raising long-term growth targets, cautious investor reaction reflected concerns over margin compression and expense control.
Q2 2026
Jan 31, 2026
KLA Corporation reported strong financial performance for the December 2025 quarter, achieving record revenues of $3.3 billion and substantial year-over-year growth across all major segments.
Key takeaways
- Revenue for the December quarter increased 17% year-over-year, driven by growth in advanced packaging and AI-related semiconductor applications.
- Non-GAAP diluted EPS rose to $8.85, surpassing guidance, reflecting strong operational leverage and gross margins of 62.6%.
- Free cash flow reached a record $1.26 billion, supporting a robust capital return of $797 million through share repurchases and dividends.
- KLA maintained a solid position in process control systems, with expectations for continued mid to high teen growth in 2026, fueled by rising demand in semiconductor manufacturing.
- The company's service business achieved its sixteenth consecutive year of growth, demonstrating a compounded annual growth rate greater than 12%.