Earnings Call
Jul 28, 2026
Q2 FY2026
EPS Estimate
1.00
EPS Actual
8.85
Post-Earnings Close
$170.19
Earnings Reaction
-10.8%
KLA Corporation closed calendar 2025 with record annual revenue of $12.745 billion, up 17% year over year, and capped the year with a December quarter that beat on every major metric. Revenue of $3.3 billion exceeded the guidance midpoint of $3.225 billion, non-GAAP diluted EPS of $8.85 topped the midpoint of guidance, and gross margin of 62.6% came in sixty basis points above the guided range, driven by stronger-than-expected service performance and manufacturing efficiencies. Free cash flow hit a quarterly record of $1.26 billion, and the company returned $797 million to shareholders in the quarter through buybacks and dividends. For the full year, EPS grew 29%, free cash flow grew 30% to $4.4 billion, and process control systems revenue outpaced industry WFE growth by several points, a pattern management expects to extend into 2026.
Report generated on Jul 27, 2026
AI-generated earnings analysis. Not investment advice.
Chief Executive Officer
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
The quarter's results reflected a combination of company-specific execution and broader sector dynamics, with management addressing several of the key debates that analysts had flagged heading into the print. Guidance commentary pointed to continued momentum in the core segments, while questions on margins and capital allocation drew more nuanced responses from the leadership team over the course of the call.
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