KLA Corporation Q1 2027 Earnings Recap

KLA’s shares rose 5.5% after earnings, as September-quarter revenue and EPS came in above the midpoint of guidance and December-quarter revenue guidance pointed to continued acceleration. Investors also had visibility into further growth in 2027, though the outlook remains tied to a strengthening AI-driven investment environment.

Key Takeaways

• Revenue was $4.14 billion, up 13% sequentially and 29% year over year; non-GAAP diluted EPS was $1.22.
• Gross margin was 62.7%, and operating margin reached 46.1%, up 240 basis points sequentially. Free cash flow was $1.34 billion.
• December-quarter revenue guidance is approximately $4.7 billion. Management said growing backlog and customer visibility support significant growth in calendar 2027.
• Advanced packaging process-control systems revenue remains on track to reach $1.1 billion or more in calendar 2026, representing more than 70% year-over-year growth.
• Services revenue was $850 million, up 14% year over year. The company ended the quarter with $4.7 billion in cash and marketable securities against $5.95 billion of debt.