KLA shares rise 4% after hours on $4.7 billion Q2 revenue guidance
KLA reported fiscal first-quarter revenue of $4.14 billion and non-GAAP diluted EPS of $1.22, above the $1.20 consensus estimate compiled by Finnhub. Its second-quarter revenue forecast is $4.7 billion.
Key takeaways
- KLA Corporation (KLAC) reported fiscal first-quarter 2027 revenue of $4.14 billion and non-GAAP diluted EPS of $1.22, above the $1.20 consensus estimate compiled by Finnhub. The company forecast second-quarter revenue of $4.7 billion, plus or minus $200 million, and non-GAAP diluted EPS of $1.44, plus or minus 11 cents.
KLA Corporation (KLAC) reported fiscal first-quarter 2027 revenue of $4.14 billion on Oct. 28, in line with the $4.12 billion consensus estimate compiled by Finnhub.
Non-GAAP diluted earnings per share were $1.22, above the $1.20 consensus estimate compiled by Finnhub. That figure is adjusted. GAAP diluted EPS was $1.18.
Shares rose 3.9% in after-hours trading as of 7:40 p.m. ET, from a regular-session close of $158.66.
KLA develops equipment and services for the electronics industry, including process control for wafers, integrated circuits, packaging and printed circuit boards. The company said in a press release that the quarter ended Sept. 30, 2026.
Here's how the company did:
- Revenue: $4.14 billion vs. $3.21 billion a year earlier, and $4.12 billion expected, according to Finnhub
- Non-GAAP diluted EPS: $1.22 vs. 88 cents a year earlier, and $1.20 expected, according to Finnhub
- GAAP diluted EPS: $1.18 vs. 85 cents a year earlier
- GAAP net income: $1.55 billion vs. $1.12 billion a year earlier
Revenue has risen in each of the last three quarters, from $3.21 billion to $3.66 billion, according to its SEC filings.
Second-quarter outlook
For the quarter ending Dec. 31, the company expects the following, according to its release:
| Metric | Guidance |
|---|---|
| Total revenues | $4.7 billion, plus or minus $200 million |
| GAAP gross margin | 61.8%, plus or minus 1.0% |
| Non-GAAP gross margin | 62.5%, plus or minus 1.0% |
| GAAP diluted EPS | $1.41, plus or minus 11 cents |
| Non-GAAP diluted EPS | $1.44, plus or minus 11 cents |
Chief Executive Rick Wallace said the company's process control business "continues to be critical to the AI ecosystem buildout" and that KLA's portfolio is well positioned for the period ahead. He said the quarter showed the growth the company expected for the second half of calendar 2026.
Costs and cash
Operating cash flow was $1.53 billion in the quarter and $4.51 billion over the last twelve months. Free cash flow was $1.34 billion in the quarter and $4.04 billion over the last twelve months.
The company recorded acquisition-related charges of $43.0 million in the quarter, mostly amortization of intangible assets, and a Pillar Two undertaxed profits rule tax of $20.2 million.
Capital returns
The company returned $1.24 billion to shareholders in the quarter, including $936 million in stock repurchases and $305 million in dividends. Over the last twelve months, capital returns totaled $3.79 billion.
Per-share figures are adjusted for the ten-for-one stock split effective June 11, 2026.