01—Abstract
Summary
Summary of the 10-K filed August 8, 2025. Cited figures are marked; the original filing is the authoritative source.
KLA Corporation (KLAC) reported a strong fiscal year 2025, with total revenues increasing by 24% to $12.16 billiona, 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 billionb in share repurchases and $904.6 million in dividends paid out during the fiscal year.
02—Key points
Key Highlights
- Total revenues increased by 24% to $12.16 billion in fiscal year 2025, driven by strong demand in Semiconductor Process Control.
- Service revenues grew by 15%, indicating a growing installed base and recurring revenue streams.
- Gross margin improved to 60.9% from 60.0% in the prior year, attributed to higher revenue volume and cost management.
- The company repurchased $2.15 billion of its common stock and paid $904.6 million in dividends, demonstrating a commitment to returning capital to shareholders.
- Revenue 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.
- The company incurred goodwill and intangible asset impairment charges totaling $239.1 million in fiscal year 2025, primarily related to its PCB business.
- Research and Development expenses increased by 6% to $1.36 billion, reflecting continued investment in innovation.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-KFY2025filed August 8, 2025Financial Statements
FY2025 against FY2024
| Line item | FY2025FY2024 | Change |
|---|---|---|
| Revenue | $12.16B$9.81B | +23.9% |
| Cost of Revenue | $4.75B$3.93B | +21.0% |
| Gross Profit | $7.40B$5.88B | +25.8% |
| R&D Expenses | $1.36B$1.28B | +6.4% |
| SG&A Expenses | $1.03B$969.51M | +6.2% |
| Net Income | $4.06B$2.76B | +47.1% |
| EPS (Basic) | $3.05$2.04 | +49.6% |
| EPS (Diluted) | $3.04$2.03 | +49.8% |
| Shares Outstanding (Basic) | 1.33B1.35B | −1.7% |
| Shares Outstanding (Diluted) | 1.34B1.36B | −1.8% |
05—Questions
Frequently Asked Questions
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.
06—Continue