Summary
KLA Corporation (KLAC) reported strong financial performance for the quarter and six months ended December 31, 2025. Total revenues increased by 7% year-over-year to $3.3 billion for the quarter, driven by robust growth in service revenue (up 18%) and a 4% increase in product revenue. This growth was particularly fueled by strong investments from memory customers in DRAM and high-bandwidth memory, alongside significant adoption of their advanced packaging products. The company also saw a notable uptick in its Semiconductor Process Control segment. The company maintained healthy profitability, with gross margin improving to 61.4% from 60.3% in the prior year's comparable quarter. Net income also saw a substantial increase, reaching $1.15 billion for the quarter, up from $824.5 million in the prior year. This improvement was partly due to the absence of the significant goodwill and intangible asset impairment charges recorded in the prior year's quarter. KLA continues to return capital to shareholders through share repurchases and dividend payments, signaling financial strength and a commitment to shareholder value.
Financial Highlights
49 data points| Revenue | $3.30B |
| Cost of Revenue | $1.27B |
| Gross Profit | $2.03B |
| R&D Expenses | $383.87M |
| SG&A Expenses | $279.92M |
| Net Income | $1.15B |
| EPS (Basic) | $8.73 |
| EPS (Diluted) | $8.68 |
| Shares Outstanding (Basic) | 131.28M |
| Shares Outstanding (Diluted) | 132.01M |
Key Highlights
- 1Total revenues grew 7% to $3.3 billion for the three months ended December 31, 2025, driven by strong service revenue growth (18%) and product revenue growth (4%).
- 2Gross margin improved to 61.4% from 60.3% year-over-year, indicating improved operational efficiency and favorable product mix.
- 3Net income surged to $1.15 billion from $824.5 million in the prior year's comparable quarter, benefiting from revenue growth and the absence of prior year impairment charges.
- 4The Semiconductor Process Control segment showed significant revenue growth (9% year-over-year), highlighting its strategic importance and demand drivers like AI and advanced packaging.
- 5KLA continued to actively return capital to shareholders, repurchasing $537.6 million of common stock and paying $249.7 million in dividends during the quarter.
- 6Cash and cash equivalents, along with marketable securities, increased to $5.21 billion, providing substantial financial flexibility.
- 7The company reiterated its commitment to investing in R&D, with R&D expenses increasing by 11% year-over-year to support technological innovation and maintain a competitive edge.