KLA Corporation Q1 FY2027 Earnings Call

· Earnings call transcript and AI-powered summary

KLA Corporation Q3 FY2026 Earnings Summary (September Quarter)

Key Highlights: KLA reported record revenue of $4.14B, beating guidance midpoints. Results reflect strong AI-driven demand in leading-edge foundry/logic and advanced packaging. Operating margin reached a company record above 46% for the first time.

Financial Performance (vs. Prior Periods)

  • Revenue: $4.14 billion (record high) — +13% sequentially and +29% year-over-year (YoY).
  • Non-GAAP Diluted EPS: $1.22 (above guidance midpoint).
  • GAAP Diluted EPS: $1.18 (above guidance midpoint).
  • Gross Margin: 62.7% (slightly above guidance midpoint).
  • Operating Margin: 46.1% (+240 basis points sequentially; first time exceeding 46%).
  • Free Cash Flow: $1.34 billion.
  • Services Revenue: $850 million (+14% YoY), driven by installed base growth and high tool utilization.
  • Advanced Packaging Process Control Revenue: On track for $1.1B+ in calendar 2026 (>70% YoY growth, nearly 2x the advanced packaging market rate).

Business & Market Outlook

  • Wafer equipment market (including advanced packaging) raised to mid-$150B range for calendar 2026; expected to exceed $200B in calendar 2027.
Professional feature The full AI summary covers key highlights, financial performance and analyst Q&A.
Operator: Thank you for your continued patience. Your meeting will begin shortly. If you need assistance at any time, please press 0 and a member of our team will be happy to help you. Good afternoon. My name is Stephanie, and I will be your conference operator today. At this time, I would like to welcome everyone to the KLA Corporation September Quarter 26 Earnings Conference Call and Webcast. All participant lines have been placed in a listen only mode to prevent any background noise. After the speakers' remarks, there will be a question and answer session. Thank you. I will now turn the call over to Kevin Kessel, Vice President of Investor Relations and Market Analytics. Please go ahead. Kevin Kessel: Welcome to the September 26 quarterly earnings call. Joining me are our CEO, Rick Wallace; and our CFO, Bren D. Higgins. We will discuss today's results as well as our outlook. Which we released after the market closed it is available on our website. Along with supplemental materials. We are presenting today's discussion and metrics on a non GAAP financial basis unless otherwise specified. All full year references we make always refer to calendar years. The earnings material contains a detailed reconciliation of GAAP to non GAAP results. Our comments today are subject to risks and uncertainties. Uncertainties reflected in the disclosure of the risk factors in our SEC filings. Any forward looking statements, including those we make on the call today, are also subject to those
Professional feature The full transcript includes every speaker turn.