KLA Corporation reported strong third-quarter fiscal year 2026 results, exceeding guidance for both revenue and EPS, driven by robust business momentum and its critical role in the AI ecosystem. The company highlighted continued market share gains and reinforced its confidence in future value creation with increased capital returns.
Total revenues of $3.415 billion exceeded the midpoint of guidance.
positiveGAAP diluted EPS of $9.12 and non-GAAP diluted EPS of $9.40 both surpassed guidance midpoints.
positiveCash flow from operating activities was $707.5 million for the quarter and $4.40 billion over the last twelve months.
positiveFree cash flow was $622.3 million for the quarter and $4.01 billion over the last twelve months.
positiveBoard approved an increase in quarterly dividend to $2.30 per share and an additional $7 billion for stock repurchases.
positiveInventories increased by $224.9 million year-over-year (from $3.212B to $3.437B).
attentionNet cash provided by operating activities decreased by 34% year-over-year ($707.5M in Q3 FY26 vs. $1.072B in Q3 FY25).
attentionCapital expenditures increased by 3.7% year-over-year ($85.2M in Q3 FY26 vs. $82.1M in Q3 FY25).
attentionGuidance for Q4 FY2026 revenue has a wide range of $200 million, indicating some uncertainty.
attentionGAAP gross margin guidance for Q4 FY2026 has a range of 200 bps (59.72% to 61.72%).
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
Semiconductor Process Control | N/A | — | — | — |
Specialty Semiconductor Process | N/A | — | — | — |
PCB and Component Inspection | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.
KLA delivered strong March quarter results exceeding the midpoint of our guidance ranges on both revenue and earnings per share.
Our business momentum remains robust, and we are highly confident in our outlook for calendar year 2026.
KLA’s critical role as a key enabler of the AI ecosystem and our continued benefits from the global AI infrastructure buildout across all major growth vectors, including foundry/logic, memory, advanced packaging, and services.
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