KLA Corporation (KLAC) Financial Results Summary
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KLA Corporation (KLAC) Q2 2026 Financial Results Summary
KLA Corporation (NASDAQ: KLAC) released its financial results for the second quarter of fiscal 2026 on January 29, 2026, reporting strong performance metrics across various dimensions.
Key Financial Highlights
- Total Revenues:
- Q2 FY 2026: $3.30 billion
- Growth of 7.14% compared to Q2 FY 2025 ($3.08 billion)
-
Exceeded guidance midpoint of $3.225 billion +/- $150 million
-
Net Income:
- GAAP: $1.15 billion
- Increase of 39.09% from Q2 FY 2025 ($825 million)
-
Non-GAAP: $1.17 billion
- Up 6.36% from Q2 FY 2025 ($1.10 billion)
-
Earnings per Share (EPS):
- GAAP diluted EPS: $8.68
- Up 40.98% year-over-year from $6.16
-
Non-GAAP diluted EPS: $8.85
- Increased 7.93% from $8.20 in Q2 FY 2025
-
Cash Flows:
- Operating activities:
- $1.37 billion for the quarter
- Year-over-year increase of 61.14% from $849.52 million
- Free cash flow:
- $1.26 billion
- Up 66.73% from $757.19 million in Q2 FY 2025
Segment Details
Fiscal performance across segments was as follows:
- Semiconductor Process Control:
- Q2 FY 2026: $3.00 billion
-
Up 9.00% from Q2 FY 2025 ($2.76 billion)
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Specialty Semiconductor Process:
- Q2 FY 2026: $140.58 million
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Decrease of 12.33% from Q2 FY 2025 ($160.41 million)
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PCB and Component Inspection:
- Q2 FY 2026: $152.18 million
- Drop of 5.69% from Q2 FY 2025 ($161.08 million)
Capital Returns
- Total Capital Returns:
- $797.4 million for the current quarter
- Down 9.03% from $876.90 million in Q2 FY 2025
Shareholder Returns:
- Dividend Payments:
-
$249.65 million paid out to shareholders
- Increased by 10.06% compared to $226.78 million in Q2 FY 2025
-
Common Stock Repurchases:
- $547.75 million in repurchases for the quarter
- Down 15.68% from $650.12 million in Q2 FY 2025
Outlook for Q3 FY 2026
Guidance for the upcoming quarter indicates continued growth:
– Total Revenues expected in the range of $3.35 billion +/- $150 million
– GAAP Gross Margin projected to be 60.62% +/- 1%
– Non-GAAP Gross Margin projected at 61.75% +/- 1%
– GAAP diluted EPS anticipated in the range of $8.85 +/- $0.78
– Non-GAAP diluted EPS forecasted between $9.08 +/- $0.78
Summary
KLA Corporation demonstrated robust financial performance in Q2 FY 2026, highlighted by increased revenues, net income, and earnings per share. The company’s strategic positioning in process control, particularly in expanding sectors like AI infrastructure, aligns well with market demand. Going forward, they aim to maintain this momentum with optimistic guidance for third-quarter results.
KLA Corporation Condensed Consolidated Unaudited Statements of Operations
(In thousands, except per share amounts)
| Three Months Ended December 31, | Six Months Ended December 31, | |||
|---|---|---|---|---|
| 2025 | 2024 | 2025 | 2024 | |
| Revenues: | ||||
| Product | $ 2,511,093 | $ 2,409,462 | $ 4,976,099 | $ 4,606,851 |
| Service | 786,053 | 667,389 | 1,530,743 | 1,311,541 |
| Total revenues | 3,297,146 | 3,076,851 | 6,506,842 | 5,918,392 |
| Costs and expenses: | ||||
| Costs of revenues | 1,271,210 | 1,221,461 | 2,514,280 | 2,368,892 |
| Research and development | 383,871 | 346,157 | 744,332 | 669,302 |
| Selling, general and administrative | 279,919 | 267,081 | 548,907 | 518,123 |
| Impairment of goodwill and purchased intangible assets | — | 239,100 | — | 239,100 |
| Interest expense | 69,668 | 74,981 | 140,743 | 157,152 |
| Other expense (income), net | -37,825 | -44,458 | -81,199 | -85,393 |
| Income before income taxes | 1,330,303 | 972,529 | 2,639,779 | 2,051,216 |
| Provision for income taxes | 184,621 | 148,002 | 373,057 | 280,838 |
| Net income | $ 1,145,682 | $ 824,527 | $ 2,266,722 | $ 1,770,378 |
| Net income per share | ||||
| Basic | $ 8.73 | $ 6.18 | $ 17.24 | $ 13.24 |
| Diluted | $ 8.68 | $ 6.16 | $ 17.15 | $ 13.17 |
| Weighted-average number of shares: | ||||
| Basic | 131,278 | 133,327 | 131,517 | 133,730 |
| Diluted | 132,009 | 133,926 | 132,205 | 134,415 |
KLA Corporation Condensed Consolidated Unaudited Balance Sheets
(In thousands)
| ASSETS | December 31, 2025 | June 30, 2025 |
|---|---|---|
| Current assets: | ||
| Cash and cash equivalents | $ 2,452,124 | $ 2,078,908 |
| Marketable securities | 2,755,340 | 2,415,715 |
| Accounts receivable, net | 2,073,581 | 2,263,915 |
| Inventories | 3,282,605 | 3,212,149 |
| Other current assets | 700,155 | 728,102 |
| Total current assets | 11,263,805 | 10,698,789 |
| Land, property and equipment, net | 1,344,768 | 1,252,775 |
| Goodwill, net | 1,790,597 | 1,792,193 |
| Deferred income taxes | 1,144,113 | 1,105,770 |
| Purchased intangible assets, net | 348,018 | 444,785 |
| Other non-current assets | 828,927 | 773,614 |
| Total assets | $ 16,720,228 | $ 16,067,926 |
| LIABILITIES AND STOCKHOLDERS’ EQUITY | ||
| Current liabilities: | ||
| Accounts payable | $ 425,189 | $ 458,509 |
| Deferred system revenue | 858,088 | 816,834 |
| Deferred service revenue | 599,254 | 548,011 |
| Other current liabilities | 2,099,941 | 2,262,441 |
| Total current liabilities | 3,982,472 | 4,085,795 |
| Long-term debt | 5,886,128 | 5,884,257 |
| Deferred tax liabilities | 452,678 | 446,945 |
| Deferred service revenue | 270,549 | 348,844 |
| Other non-current liabilities | 662,670 | 609,632 |
| Total liabilities | 11,254,497 | 11,375,473 |
| Stockholders’ equity: | ||
| Common stock and capital in excess of par value | 2,604,177 | 2,511,922 |
| Retained earnings | 2,860,594 | 2,179,330 |
| Accumulated other comprehensive income | 960 | 1,201 |
| Total stockholders’ equity | 5,465,731 | 4,692,453 |
| Total liabilities and stockholders’ equity | $ 16,720,228 | $ 16,067,926 |