KLA Corporation Q2 2026 Earnings Recap

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%.