#United States #Milpitas #Semiconductor #KLA Corporation #Fiscal 2026

KLA Corporation Reports First Quarter Results for Fiscal 2026

KLA Corporation, headquartered in Milpitas, California, announced its financial results for the first quarter of fiscal year 2026, which concluded on September 30, 2025. The company reported total revenues of $3.21 billion, surpassing their guidance midpoint of $3.15 billion by a notable margin. This steady accumulation of revenue illustrates the company's robust performance and reflects a significant increase compared to previous fiscal periods.

The results revealed a GAAP net income of $1.12 billion, translating to a GAAP diluted earnings per share (EPS) of $8.47. Meanwhile, the non-GAAP diluted EPS stood at $8.81, marking a considerable leap from last year's figures. This year-on-year growth is attributed to KLA's strategic focus on enhancing its product and service offerings in the vibrant semiconductor market, fueled by a booming demand for advanced technological solutions.

KLA's president and CEO, Rick Wallace, remarked on the company's performance by stating, "KLA produced a strong all-around September quarter performance above the guidance midpoints. These results reflect double-digit year-over-year revenue and EPS growth, and KLA is set for substantial relative revenue growth compared to our industry in calendar 2025."

Financial Highlights

The first quarter of fiscal 2026 showcased the following key financial highlights:

• - Total Revenues: $3,210 million (up from $2,842 million in Q1 FY 2025)
• - Net Income: $1,121 million (last year: $946 million)
• - Net Income per Diluted Share (GAAP): $8.47 (last year: $7.01)
• - Non-GAAP Net Income: $1,167 million (last year: $988 million)
• - Free Cash Flow: $1.07 billion

The company also noted its cash flow from operating activities totaled $1.16 billion during the quarter, with free cash flow reaching $1.07 billion. This solid financial footing enables KLA to continue investing in its growth and expansion strategies. Additionally, KLA returned $799.1 million to its shareholders through stock repurchases and dividends during the quarter.

Future Guidance

As KLA looks toward the upcoming second quarter of fiscal year 2026, the company estimates total revenues to range from $3.225 billion with a variance of ±$150 million. Furthermore, the GAAP gross margin is expected to be around 60.8%, with non-GAAP gross margin higher at 62.0%. The anticipated GAAP diluted EPS for the second quarter is projected to be in the range of $8.46 to $9.24, reflecting KLA's strong market position and strategic planning.

Industry Position

KLA has established itself as a leader in the semiconductor and electronics sector. With its innovative equipment and services, KLA plays a pivotal role in the manufacturing of wafers, integrated circuits, and packaging. The company is uniquely positioned to capitalize on the rapidly evolving landscape influenced by the required infrastructure to support AI technologies. Their portfolio addresses critical challenges in the high-performance computing space, as highlighted by the ongoing AI infrastructure build-out.

Wallace further emphasized KLA's strategic direction, noting that advancements in AI infrastructure represent a monumental shift in high-performance computing. "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 computation, especially in leading-edge foundry, memory, and advanced packaging markets," he stated.

Conclusion

KLA Corporation’s financial successes during the first quarter of fiscal 2026 reflect its capability to drive growth even amidst a challenging economic landscape. With favorable market trends and a strong pipeline of innovative solutions combined with strategic foresight, KLA is poised for continued success in the semiconductor industry. Investors and stakeholders can look forward to an exciting phase as KLA leverages emerging technologies to enhance its competitive edge and deliver substantial returns.