KLA Corp
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +6.74%.
Did KLAC Beat Earnings? Q3 2025 Results
KLA Corporation posted a strong fiscal third quarter for 2025, beating Wall Street expectations on both the top and bottom lines as demand for semiconductor process control equipment surged. The company reported non-GAAP diluted EPS of $8.41, clearing the $8.08 consensus estimate by 4.03%, while revenue climbed to $3.06 billion, a 30.0% increase year over year that edged past the $3.01 billion analyst consensus by 1.77%. The primary engine behind the outperformance was KLA's Semiconductor Process Control segment, which generated $2.74 billion in quarterly revenue compared to $2.10 billion a year ago, reflecting robust demand tied to leading-edge AI-driven chip investments. Operating cash flow reached $1.07 billion for the quarter, and the company returned $732.52 million to shareholders through buybacks and dividends, while also announcing a 12% dividend increase and a fresh $5.00 billion repurchase authorization. Looking ahead, KLA guided fiscal Q4 2025 revenue to $3.08 billion and non-GAAP EPS of $8.53, with management noting that despite broader trade uncertainty, no customers have signaled any demand changes for calendar year 2025.
- Growing relevancy in semiconductor manufacturing
- Leadership in process control enabling leading-edge AI investments
- Strong product revenue growth year-over-year
- Semiconductor Process Control segment driving majority of revenue growth
- KLA Operating Model guiding execution and investment differentiation
“KLA's March quarter results were above the midpoint of our guidance ranges and established a strong start to the calendar year. Though global trade dynamics are driving uncertainty across the global economy, to date, we have received no indications of demand changes from our customers for calendar year 2025.”
KLA CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q4 2025 (ending June 2025), KLA guided total revenues of $3.075 billion +/- $150 million, GAAP diluted EPS of $8.28 +/- $0.78, non-GAAP diluted EPS of $8.53 +/- $0.78, GAAP gross margin of 61.7% +/- 1.0%, and non-GAAP gross margin of 63.0% +/- 1.0%. CEO Rick Wallace noted that despite global trade dynamics driving uncertainty, KLA has received no indications of demand changes from customers for calendar year 2025. The company remains encouraged by its growing relevancy in semiconductor manufacturing and leadership in process control as a key enabler of AI investments.
KLAC YoY Financials
KLAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.