KLA Corp
Q2 2026 Earnings
Market Reaction
S&P 500 over the same 30 days: −0.99%.
Did KLAC Beat Earnings? Q2 2026 Results
KLA Corporation delivered a record-setting fiscal second quarter, with revenue of $3.30 billion and non-GAAP diluted EPS of $8.85 both topping Wall Street expectations, as <a href="https://247wallst.com/investing/2026/01/29/kla-corporation-earnings-preview-what-to-watch-when-klac-reports-today/">investors had been watching closely</a> heading into the print. The EPS figure edged past the $8.80 consensus by 0.59%, while revenue beat estimates by 1.43% and climbed 7.2% year over year, marking records for revenue, non-GAAP operating income, and free cash flow for both the quarter and full calendar year 2025. The result was driven primarily by KLA's Semiconductor Process Control segment, which generated $3.00 billion in revenue as demand for process control at the leading edge of foundry, logic, and memory accelerated, fueled by AI infrastructure buildout. Free cash flow reached $1.26 billion, and the company returned $797.40 million to shareholders through buybacks and dividends. With broader export restriction concerns lingering across the chip equipment sector, KLA's guidance for fiscal Q3 2026, calling for revenue of $3.35 billion and non-GAAP EPS of $9.08, signals management expects the momentum to continue.
- Differentiated product portfolio driving record revenue performance
- Increasing relevance of process control at leading edge for foundry/logic and memory
- Strong free cash flow generation of $1.26 billion for the quarter and $4.38 billion for the last twelve months
- Product revenue growth to $2.51 billion from $2.41 billion year-over-year
- Service revenue growth to $786 million from $667 million year-over-year
“KLA delivered a record quarter and calendar 2025 for revenue, non-GAAP operating income, and free cash flow generation. This performance was fueled by our differentiated product portfolio and solid company execution in an environment where the relevance of process control at the leading edge for foundry/logic and memory is increasing. As the market leader in process control, KLA is well positioned to take advantage of this long-term trend.”
KLA CEO, on the earnings call
Forward Guidance & Outlook
For fiscal Q3 2026 (ending March 31, 2026), KLA guided total revenues in a range of $3.35 billion +/- $150 million, GAAP gross margin of 60.62% +/- 1.00%, non-GAAP gross margin of 61.75% +/- 1.00%, GAAP diluted EPS of $8.85 +/- $0.78, and non-GAAP diluted EPS of $9.08 +/- $0.78. Management views KLA as a key enabler of the AI ecosystem and expects to continue benefiting from the AI infrastructure buildout across foundry/logic, memory, advanced packaging, and services in calendar year 2026.
KLAC YoY Financials
KLAC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.