KLA Corporation Q4 FY2026 Earnings Call

· Earnings call transcript and AI-powered summary

KLA Corporation June Quarter 2026 Earnings Summary

Key Highlights: Strong results with record revenue, profitability, and EPS above guidance midpoints. Driven by AI infrastructure demand, leading-edge foundry/logic strength, rising process control intensity in memory/advanced packaging, and HBM adoption. 10-for-1 stock split effective June 11, 2026 (all per-share figures adjusted).

Financial Performance (vs. Prior Periods)

  • Revenue: $3.66 billion (record) — +7% sequentially, +15% year-over-year; above guidance midpoint of $3.575 billion.
  • Non-GAAP Diluted EPS: $1.05 (upper end of guidance); GAAP Diluted EPS: $1.04.
  • Gross Margin: 62.4% (upper end of guidance) — favorable services mix and scale offset memory pricing/tariff pressures.
  • Operating Expenses: $682 million (R&D $399M, SG&A $283M); Operating Margin: 43.7% (incremental margin 59%).
  • Net Income: Non-GAAP $1.39 billion; GAAP $1.36 billion.
  • Cash Flow: Operating cash flow $906 million; Free cash flow $817 million (28% FCF margin over trailing 12 months).
  • Services Revenue: $820 million — +17% year-over-year.
  • Capital Returns: $876 million in quarter ($571M repurchases, $305M dividends); $3.3 billion over past 12 months.

Business & Market Outlook

Professional feature The full AI summary covers key highlights, financial performance and analyst Q&A.
Operator: Good afternoon. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the KLA Corporation June Quarter 2026 Earnings Conference Call and Webcast. [Operator Instructions] I would now like to turn the call over to Kevin Kessel, Vice President of Investor Relations and Market Analytics. Please go ahead. Kevin Kessel: Welcome to the June 2026 quarterly earnings call. I'm joined by our CEO, Rick Wallace; and our CFO, Bren Higgins. We will discuss today's results as well as our outlook, which we released after the market close and 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 refer to calendar years. The earnings materials contain a detailed reconciliation of GAAP to non-GAAP results. It should also be noted that effective June 11, 2026, KLA completed a 10-for-1 stock split, all current and prior EPS and other per share amounts referenced on this call and our materials have been adjusted to reflect the split. Our comments today are subject to risks and uncertainties reflected in the disclosure of risk factors in our SEC filings. Any forward-looking statements, including those we make on the call today, are also subject to those risks, and KLA cannot guarantee those forward-looking statements will come true. Our actual results may differ significantly from t
Professional feature The full transcript includes every speaker turn.