KLA CORP (KLAC) Earnings History

KLA CORP - Q1 FY2026 Earnings

Filed at: Oct 28, 2025, 8:00 PM EDT|Read from source

EXECUTIVE SUMMARY

KLA Corporation reported a strong first quarter of fiscal year 2026, exceeding guidance with double-digit year-over-year growth in revenue and EPS, driven by the AI infrastructure buildout.

POSITIVE HIGHLIGHTS

  • •

    Total revenues were $3.21 billion, above the midpoint of the guidance range.

    positive
  • •

    GAAP diluted EPS was $8.47 and non-GAAP diluted EPS was $8.81, both above guidance midpoints.

    positive
  • •

    Cash flow from operating activities was $1.16 billion for the quarter and $4.25 billion for the last twelve months.

    positive
  • •

    Free cash flow was $1.07 billion for the quarter and $3.88 billion for the last twelve months.

    positive
  • •

    Capital returns for the quarter and last twelve months were $799.1 million and $3.09 billion, respectively.

    positive

CONCERNS & RISKS

  • •

    Inventories increased to $3.297 billion from $3.212 billion in the prior quarter.

    attention
  • •

    Acquisition-related charges impacted GAAP results, with $49.0 million in the current quarter.

    attention
  • •

    Guidance for Q2 FY2026 GAAP diluted EPS range ($7.68 - $9.24) shows a wide potential variance.

    attention

FINANCIAL METRICS

Revenue
Quarterly
$3.21B
+13.0%
Prior year: $2.84B
Net Income
Quarterly
$1.12B
+18.5%
Prior year: $945.85M
EPS (Diluted)
Quarterly
$8.47
+20.8%
Prior year: $7.01
Operating Income
Quarterly
N/A
N/A
EPS (Basic)
Quarterly
$8.51
+20.7%
Prior year: $7.05

MARGIN ANALYSIS

Net Margin
Current Quarter
34.9%
Prior Year
33.3%
YoY Change
+164 bps

Margin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.

MANAGEMENT GUIDANCE

Q2 FY2026

revenue
$3075000.0B—$3375000.0B
Mid-point: $3225000.0B
gross_margin
60.8%—61.8%
Mid-point: 61.3%
"GAAP gross margin guidance"
gross_margin
62.0%—63.0%
Mid-point: 62.5%
"Non-GAAP gross margin guidance"
eps_diluted
$7.68—$9.24
Mid-point: $8.46
"GAAP diluted EPS guidance"
eps_diluted
$8.70—$9.48
Mid-point: $9.09
"Non-GAAP diluted EPS guidance"

Forward-looking guidance is subject to change and does not constitute a guarantee. Actual results may differ materially from these estimates.

SPECIAL ITEMS & ADJUSTMENTS

Q1 FY2026
Acquisition-related charges
Excluded from non-GAAP results.
+$49.026M
Q1 FY2026
Discrete tax items
Included in GAAP net income, impacts comparability.
+$15.087M
Total Impact
+$64.113M

Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.

MANAGEMENT COMMENTARY

KLA is on pace for solid relative revenue growth compared to our industry in calendar 2025.

— KLA CORP, Q1 FY2026 2026 Earnings Call

The AI infrastructure buildout represents a profound change in high performance computing that will positively affect a wide range of industries.

— KLA CORP, Q1 FY2026 2026 Earnings Call

KLA is in a unique position to benefit from this buildout with an industry-leading portfolio of solutions directly addressing the biggest challenges for AI compute in the leading-edge foundry/logic, memory, and advanced packaging markets.

— KLA CORP, Q1 FY2026 2026 Earnings Call

Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.

OPERATIONAL METRICS

Pcb And Component Inspection Revenue
189.5M
+37.3% YoY
Prior year: 138.0M
revenue
Semiconductor Process Control Revenue
2899.4M
+12.6% YoY
Prior year: 2575.2M
revenue
Specialty Semiconductor Process Revenue
119.8M
-6.7% YoY
Prior year: 128.3M
revenue

Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.