What are KLA Corporation's main business segments?

KLA Corporation operates in three reportable segments: Semiconductor Process Control, which provides inspection, metrology, and data analytics solutions for IC manufacturing; Specialty Semiconductor Process, offering advanced vacuum deposition and etching tools for niche semiconductor applications; and PCB and Component Inspection, which includes inspection and testing solutions for Printed Circuit Boards (PCBs) and other electronic components.

How did KLA Corporation's revenue perform in fiscal year 2025?

In fiscal year 2025, KLA Corporation's total revenues increased by 24% to $12.16 billion. This growth was primarily driven by a 27% increase in product revenue, fueled by strong demand in the Semiconductor Process Control segment, particularly for AI infrastructure and advanced packaging. Service revenue also saw a healthy 15% increase.

What is KLA Corporation's outlook on the semiconductor industry, particularly concerning China and advanced technologies?

KLA's outlook is positive, driven by demand for advanced semiconductor technologies, including the 2-nanometer node and AI/HPC applications. The company notes increased investment in Taiwan for leading-edge process control due to AI, while its revenue from China has decreased due to stricter U.S. export controls. The company continues to monitor geopolitical and regulatory changes, especially concerning China, which have impacted its business.

How is KLA Corporation managing its capital and returning value to shareholders?

KLA Corporation is actively returning capital to shareholders through its stock repurchase program and by paying quarterly cash dividends. In fiscal year 2025, the company repurchased $2.15 billion of its common stock and paid $904.6 million in dividends, marking its 16th consecutive annual dividend increase. The company has substantial liquidity, with $4.49 billion in cash, cash equivalents, and marketable securities as of June 30, 2025.

KLAC 10-K FY2025 Annual Report — Revenue, Net Income, EPS

Summary

KLA Corporation (KLAC) reported a strong fiscal year 2025, with total revenues increasing by 24% to $12.16 billion, driven primarily by robust demand in the Semiconductor Process Control segment, particularly from leading-edge foundries investing in AI infrastructure and advanced packaging. The company also saw a significant 15% increase in service revenues, reflecting growth in its installed base. Despite geopolitical and trade headwinds, KLA managed to improve its gross margin to 60.9% through increased revenue volume and effective cost management. KLA continued its commitment to returning capital to shareholders, with $2.15 billion in share repurchases and $904.6 million in dividends paid out during the fiscal year.

Financial Highlights

53 data points

Beta

Revenue

$12.16B

0.6% Gross Margin

Net Income

$4.06B

0.3% Net Margin

EPS (Diluted)

$30.37

Total Assets

$16.07B

Cash & Equivalents

$2.08B

Free Cash Flow

$3.75B

Financial Statements

Beta

Revenue	$12.16B
Cost of Revenue	$4.75B
Gross Profit	$7.40B
R&D Expenses	$1.36B
SG&A Expenses	$1.03B
Net Income	$4.06B
EPS (Basic)	$30.53
EPS (Diluted)	$30.37
Shares Outstanding (Basic)	133.03M
Shares Outstanding (Diluted)	133.75M

Key Highlights

1Total revenues increased by 24% to $12.16 billion in fiscal year 2025, driven by strong demand in Semiconductor Process Control.
2Service revenues grew by 15%, indicating a growing installed base and recurring revenue streams.
3Gross margin improved to 60.9% from 60.0% in the prior year, attributed to higher revenue volume and cost management.
4The company repurchased $2.15 billion of its common stock and paid $904.6 million in dividends, demonstrating a commitment to returning capital to shareholders.
5Revenue from China decreased to 33% of total revenues, down from 43% in the prior year, impacted by U.S. export controls, while Taiwan saw increased investment, contributing significantly to revenue growth.
6The company incurred goodwill and intangible asset impairment charges totaling $239.1 million in fiscal year 2025, primarily related to its PCB business.
7Research and Development expenses increased by 6% to $1.36 billion, reflecting continued investment in innovation.

KLA CORP Annual Report, Year Ended Jun 30, 2025

Summary

Financial Highlights

Key Highlights

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