01—Abstract
Summary
Summary of the 10-Q filed April 30, 2026. Cited figures are marked; the original filing is the authoritative source.
KLA Corporation (KLAC) reported strong financial performance for the nine months ended March 31, 2026, with total revenues increasing by 10% year-over-year to $9.92 billiona.
This growth was driven by a 9% rise in product revenue and a significant 16% increase in service revenue, reflecting a growing installed base of KLA's advanced semiconductor equipment. The company maintained a robust gross margin of 61.3% for the period. Net income also saw a healthy increase of 21% to $3.47 billionb, resulting in diluted earnings per share of $26.26.
KLA continues to prioritize returning capital to shareholders, with substantial share repurchases and a growing dividend. The company maintains a strong liquidity position with $4.96 billionc in cash, cash equivalents, and marketable securities, and an unused $1.5 billion revolving credit facility, positioning it well to navigate the dynamic semiconductor market.
02—Key points
Key Highlights
- Total revenues increased by 10% to $9.92 billion for the nine months ended March 31, 2026, driven by growth in both product and service segments.
- Service revenue experienced a strong increase of 16%, indicating the growing installed base and recurring revenue streams.
- Net income rose by 21% to $3.47 billion for the nine-month period, with diluted EPS reaching $26.26.
- The company maintained a healthy gross margin of 61.3% for the nine months, demonstrating effective cost management.
- KLA continues its commitment to returning capital to shareholders, repurchasing $1.72 billion in stock and paying $752.5 million in dividends during the first nine months of fiscal 2026.
- The company ended the period with a strong liquidity position, holding $4.96 billion in cash, cash equivalents, and marketable securities.
- Revenues from the Semiconductor Process Control segment, KLA's largest, increased by 11% for the nine months, reflecting demand in memory and foundry/logic markets, particularly driven by AI investments.
03—One dollar
04—Financials
Financial Highlights
Figures from 10-QQ3 FY2026filed April 30, 2026Financial Statements
Q3 FY2026 against Q3 FY2025
| Line item | Q3 FY2026Q3 FY2025 | Change |
|---|---|---|
| Revenue | $3.42B$3.06B | +11.5% |
| Cost of Revenue | $1.33B$1.18B | +12.9% |
| Gross Profit | $2.09B$1.89B | +10.6% |
| R&D Expenses | $388.76M$338.04M | +15.0% |
| SG&A Expenses | $291.13M$248.91M | +17.0% |
| Net Income | $1.20B$1.09B | +10.3% |
| EPS (Basic) | $0.92$0.82 | +11.7% |
| EPS (Diluted) | $0.91$0.82 | +11.8% |
| Shares Outstanding (Basic) | 1.31B1.33B | −1.3% |
| Shares Outstanding (Diluted) | 1.32B1.33B | −1.2% |
05—Questions
Frequently Asked Questions
What were the main drivers of KLA's revenue growth in the reported period?
KLA's revenue growth was primarily driven by increased investments from memory customers, particularly in DRAM (led by high-bandwidth memory), steady growth in foundry/logic, and strong customer adoption of its advanced packaging portfolio. The service revenue also saw significant growth due to the expanding installed base of tools.
How is KLA managing its commitment to shareholders?
KLA is actively returning capital to shareholders through a robust stock repurchase program and consistent dividend payments. For the nine months ended March 31, 2026, the company repurchased $1.72 billion of its stock and paid $752.5 million in dividends. The company also announced an increase in its quarterly dividend to $2.30 per share in March 2026.
What is KLA's financial position and liquidity outlook?
KLA maintains a strong financial position with $4.96 billion in cash, cash equivalents, and marketable securities as of March 31, 2026. The company also has a $1.5 billion revolving credit facility with no outstanding borrowings. Management believes its liquidity is sufficient to meet its obligations for at least the next 12 months.
What impact are geopolitical factors and trade regulations having on KLA?
KLA acknowledges that geopolitical factors, including U.S. export controls and regulations targeting China, and the evolving tariff environment, have had and may continue to have an adverse impact on its business, including potential disruptions to supply chains, revenue recognition, and operations. The company is actively monitoring these risks and seeking necessary licenses to mitigate potential disruptions.
06—Continue