10-KPeriod: FY2026

KLA CORP Annual Report, Year Ended Jun 30, 2026

Filed August 6, 2026For Securities:KLAC

Summary

KLA Corporation (KLAC) has reported a strong fiscal year 2026, demonstrating robust revenue growth of 12% to $13.58 billion. This expansion was primarily driven by increased customer investments in leading-edge semiconductor technologies, particularly for AI and High-Performance Computing (HPC) applications, within its Semiconductor Process Control segment. The company also saw growth in its Specialty Semiconductor Process and PCB and Component Inspection segments. KLA maintained a healthy gross margin of 61.3% and a net income of $4.83 billion, translating to diluted earnings per share of $3.66. The company continues to return value to shareholders through significant share repurchases and consistent dividend increases, with $9.74 billion remaining on its share repurchase program. KLA is well-positioned to capitalize on the ongoing AI infrastructure buildout and the increasing complexity of semiconductor manufacturing, though it remains mindful of macroeconomic factors and geopolitical risks, particularly concerning international trade and export controls.

Key Highlights

  • 1Total revenues increased by 12% to $13.58 billion in fiscal year 2026.
  • 2Semiconductor Process Control segment revenue grew 12%, driven by AI/HPC demand and leading-edge investments.
  • 3Net income reached $4.83 billion, with diluted EPS of $3.66.
  • 4The company has a strong backlog of $12.57 billion as of June 30, 2026, up from $7.86 billion the previous year.
  • 5KLA returned $3.35 billion to stockholders in fiscal year 2026 through $2.29 billion in share repurchases and $1.06 billion in dividends.
  • 6International revenues accounted for approximately 87% of total revenues, highlighting a global customer base.
  • 7The company's significant R&D investment of $1.53 billion underscores its commitment to technological innovation.

Frequently Asked Questions

KLA Corporation's revenue growth in fiscal year 2026 was primarily driven by increased customer investments in leading-edge semiconductor technologies, particularly in foundry/logic, memory, and advanced packaging sectors. This surge in demand is significantly influenced by the ongoing buildout of AI and High-Performance Computing (HPC) infrastructure.

KLA Corporation is actively returning value to its shareholders through a robust share repurchase program, with $9.74 billion remaining authorization as of June 30, 2026. Additionally, the company has consistently increased its quarterly cash dividend, demonstrating a commitment to shareholder returns.

KLA Corporation faces several key risks, including those related to macroeconomic conditions and global economic weakness, international trade policies and export controls (especially concerning China), supply chain disruptions, intense competition, and cybersecurity threats. The company also notes the cyclical nature of the semiconductor industry and potential impacts from AI development and adoption.

KLA Corporation's backlog significantly increased from $7.86 billion as of June 30, 2025, to $12.57 billion as of June 30, 2026. This substantial growth in backlog is attributed to strong demand, largely driven by AI infrastructure buildout, indicating robust future revenue potential for the company.