KLA Corporation Q4 2026 Earnings Recap

Shares dropped 16.3% as investors reacted negatively to cautious commentary on the memory pricing environment and tariff headwinds, as well as subtle signs of margin pressure despite revenue and earnings beating prior guidance.

Key Takeaways

• Revenue reached $3.66 billion, 7% sequential growth and 15% year-over-year, above midpoint guidance.
• Non-GAAP diluted EPS of $1.05 and GAAP EPS of $1.04 came in at upper guidance range.
• Gross margin was 62.4%, near the high end of guidance but offset by challenges in memory pricing and tariffs.
• Operating expenses totaled $682 million, including $399 million in R&D and $283 million in SG&A.
• Free cash flow of $817 million supported $876 million returned to shareholders in the quarter through buybacks and dividends.