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KLA CORPORATION REPORTS FISCAL 2025 FOURTH QUARTER AND FULL YEAR RESULTS

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KLA Corporation (NASDAQ: KLAC) reported strong financial results for Q4 and full fiscal year 2025. Q4 revenues reached $3.175 billion, with GAAP EPS of $9.06 and non-GAAP EPS of $9.38. The company achieved record quarterly free cash flow of $1.06 billion.

For FY2025, KLA posted total revenues of $12.16 billion with GAAP net income of $4.06 billion. Looking ahead to Q1 FY2026, KLA projects revenues of $3.15 billion ±$150 million and non-GAAP EPS guidance of $8.53 ±$0.77.

The company highlighted its crucial role in supporting AI infrastructure development and semiconductor innovation across foundry/logic and memory markets.

KLA Corporation (NASDAQ: KLAC) ha annunciato risultati finanziari solidi per il quarto trimestre e l'intero anno fiscale 2025. I ricavi del quarto trimestre hanno raggiunto 3,175 miliardi di dollari, con un utile per azione GAAP di 9,06 dollari e un utile per azione non-GAAP di 9,38 dollari. L'azienda ha registrato un flusso di cassa libero trimestrale record di 1,06 miliardi di dollari.

Per l'anno fiscale 2025, KLA ha riportato ricavi totali di 12,16 miliardi di dollari e un utile netto GAAP di 4,06 miliardi di dollari. Guardando al primo trimestre del 2026, KLA prevede ricavi di 3,15 miliardi di dollari ±150 milioni e una stima di utile per azione non-GAAP di 8,53 ±0,77 dollari.

L'azienda ha sottolineato il suo ruolo fondamentale nel supportare lo sviluppo dell'infrastruttura per l'intelligenza artificiale e l'innovazione nei semiconduttori nei mercati foundry/logic e memoria.

KLA Corporation (NASDAQ: KLAC) reportó sólidos resultados financieros para el cuarto trimestre y el año fiscal completo 2025. Los ingresos del cuarto trimestre alcanzaron los 3.175 millones de dólares, con un BPA GAAP de 9,06 dólares y un BPA no GAAP de 9,38 dólares. La compañía logró un flujo de caja libre trimestral récord de 1.060 millones de dólares.

Para el año fiscal 2025, KLA registró ingresos totales de 12.160 millones de dólares con un ingreso neto GAAP de 4.060 millones de dólares. De cara al primer trimestre del 2026, KLA proyecta ingresos de 3.150 millones de dólares ±150 millones y una guía de BPA no GAAP de 8,53 ±0,77.

La compañía destacó su papel crucial en el apoyo al desarrollo de infraestructuras de IA y la innovación en semiconductores en los mercados de fundición/lógica y memoria.

KLA Corporation (NASDAQ: KLAC)는 2025 회계연도 4분기 및 전체 연도에 강력한 재무 실적을 보고했습니다. 4분기 매출은 31억 7,500만 달러에 달했으며, GAAP 주당순이익은 9.06달러, 비-GAAP 주당순이익은 9.38달러였습니다. 회사는 분기별 자유현금흐름 기록인 10억 6천만 달러를 달성했습니다.

2025 회계연도 전체 매출은 121억 6천만 달러이며, GAAP 순이익은 40억 6천만 달러였습니다. 2026 회계연도 1분기 전망으로는 매출 31억 5천만 달러 ±1억 5천만 달러, 비-GAAP 주당순이익 가이던스는 8.53 ±0.77달러를 제시했습니다.

회사는 파운드리/로직 및 메모리 시장 전반에서 AI 인프라 개발 및 반도체 혁신 지원에 중요한 역할을 하고 있음을 강조했습니다.

KLA Corporation (NASDAQ : KLAC) a publié de solides résultats financiers pour le quatrième trimestre et l'ensemble de l'exercice fiscal 2025. Les revenus du quatrième trimestre ont atteint 3,175 milliards de dollars, avec un BPA GAAP de 9,06 dollars et un BPA non-GAAP de 9,38 dollars. L'entreprise a réalisé un flux de trésorerie disponible trimestriel record de 1,06 milliard de dollars.

Pour l'exercice 2025, KLA a enregistré un chiffre d'affaires total de 12,16 milliards de dollars avec un bénéfice net GAAP de 4,06 milliards de dollars. Pour le premier trimestre de l'exercice 2026, KLA prévoit des revenus de 3,15 milliards de dollars ±150 millions et une prévision de BPA non-GAAP de 8,53 ±0,77.

L'entreprise a souligné son rôle clé dans le soutien au développement des infrastructures d'IA et à l'innovation dans les marchés des semiconducteurs, notamment dans les segments fonderie/logique et mémoire.

KLA Corporation (NASDAQ: KLAC) meldete starke Finanzergebnisse für das vierte Quartal und das gesamte Geschäftsjahr 2025. Die Umsätze im vierten Quartal erreichten 3,175 Milliarden US-Dollar, mit einem GAAP-Gewinn je Aktie von 9,06 US-Dollar und einem Non-GAAP-Gewinn je Aktie von 9,38 US-Dollar. Das Unternehmen erzielte einen Rekord-Quartals-Frei-Cashflow von 1,06 Milliarden US-Dollar.

Für das Geschäftsjahr 2025 verzeichnete KLA einen Gesamtumsatz von 12,16 Milliarden US-Dollar und einen GAAP-Nettogewinn von 4,06 Milliarden US-Dollar. Für das erste Quartal des Geschäftsjahres 2026 prognostiziert KLA Umsätze von 3,15 Milliarden US-Dollar ±150 Millionen und eine Non-GAAP-Gewinnprognose von 8,53 ±0,77.

Das Unternehmen hob seine entscheidende Rolle bei der Unterstützung der Entwicklung von KI-Infrastrukturen und der Innovation im Halbleiterbereich in den Foundry/Logic- und Speichermärkten hervor.

Positive
  • Record quarterly free cash flow of $1.06 billion in Q4
  • Q4 revenue grew 23.6% year-over-year to $3.175 billion
  • Q4 GAAP net income increased 43.9% year-over-year to $1.203 billion
  • Strong capital returns of $679.7 million in Q4
  • Robust Q1 FY2026 revenue guidance of $3.15 billion ±$150 million
Negative
  • Sequential decline in projected Q1 FY2026 EPS compared to Q4 FY2025
  • Expected slight sequential revenue decline for Q1 FY2026

Insights

KLA delivered strong Q4 results with record free cash flow, driven by AI demand and maintaining its leading position in semiconductor inspection.

KLA's Q4 financial results demonstrate exceptional performance in a high-demand semiconductor equipment market. Revenue reached $3.175 billion, at the upper end of guidance, while non-GAAP EPS of $9.38 exceeded the upper guidance range. The sequential revenue growth of 3.7% from Q3 and substantial year-over-year growth of 23.6% indicates strong market positioning.

Most impressive is KLA's free cash flow generation, which surpassed $1 billion in a quarter for the first time. This represents approximately 33% of revenue converting to free cash flow – an exceptional conversion rate in the capital-intensive semiconductor equipment industry. The company returned significant capital to shareholders, with $679.7 million in the quarter and $3.05 billion for the fiscal year through dividends and buybacks.

KLA's gross margins remain robust, with Q1 FY2026 non-GAAP gross margin guidance of 62.0% (±1.0%), reflecting the company's pricing power and operational efficiency. However, the relatively flat sequential revenue guidance of $3.15 billion (±$150M) for Q1 FY2026 suggests potential stabilization in growth rates.

The company's commentary about enabling AI infrastructure buildout aligns with broader industry trends where inspection and metrology tools become increasingly critical as process complexity increases for advanced logic and memory chips powering AI applications. KLA's tools are essential for maintaining yield and quality in these complex manufacturing processes, positioning them well in the ongoing semiconductor super-cycle driven by artificial intelligence demands.

  • For the quarter, total revenues were $3.175 billion, towards the upper end of the guidance range;
  • GAAP diluted EPS was $9.06, at the upper end of the guidance range, and non-GAAP diluted EPS was $9.38, above the upper end of the guidance range;
  • Cash flow from operating activities for the quarter and fiscal year was $1.16 billion and $4.08 billion, respectively, and free cash flow was $1.06 billion and $3.75 billion, respectively. Quarterly free cash flow topped $1 billion for the first time in the June quarter; and
  • Capital returns for the quarter and fiscal year were $679.7 million and $3.05 billion, respectively.

MILPITAS, Calif., July 31, 2025 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today announced financial and operating results for its fourth quarter and fiscal year ended June 30, 2025. KLA reported GAAP net income of $1.20 billion and GAAP diluted earnings per share ("EPS") of $9.06 on total revenues of $3.175 billion for the fourth quarter of fiscal year 2025. For the fiscal year ended June 30, 2025, KLA reported GAAP net income of $4.06 billion and GAAP diluted EPS of $30.37 on total revenues of $12.16 billion.

"KLA delivered strong across-the-board results for the June quarter including generating record quarterly free cash flow. These results reflect the unique and compelling opportunity within semiconductor capital equipment for KLA's continued role in enabling and supporting the AI infrastructure buildout," said Rick Wallace, president and CEO of KLA Corporation. "We continue to see growing relevancy for KLA's industry-leading technologies across our product portfolio in driving semiconductor-based innovation for our global customers in the leading-edge foundry/logic and memory markets, in addition to the evolving opportunities in advanced semiconductor packaging."

GAAP Results


Q4 FY 2025

Q3 FY 2025

Q4 FY 2024

Total Revenues

$3,175 million

$3,063 million

$2,569 million

Net Income

$1,203 million

$1,088 million

$836 million

Net Income per Diluted Share

$9.06

$8.16

$6.18





Non-GAAP Results


Q4 FY 2025

Q3 FY 2025

Q4 FY 2024

Net Income

$1,244 million

$1,121 million

$893 million

Net Income per Diluted Share

$9.38

$8.41

$6.60

 

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. KLA will discuss the results for its fiscal year 2025 fourth quarter and full year, along with its outlook, on a conference call today beginning at 2:00 p.m. P.T. A webcast of the call will be available at: www.kla.com.

First Quarter Fiscal 2026 Guidance
The following details our guidance for the first quarter of fiscal 2026 ending in September:

  • Total revenues is expected to be in a range of $3.15 billion +/- $150 million
  • GAAP gross margin is expected to be in a range of 60.7% +/- 1.0%
  • Non-GAAP gross margin is expected to be in a range of 62.0% +/- 1.0%
  • GAAP diluted EPS is expected to be in a range of $8.28 +/- $0.77
  • Non-GAAP diluted EPS is expected to be in a range of $8.53 +/- $0.77

For additional details and assumptions underlying our guidance metrics, please see the company's published Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic on the KLA investor relations website (ir.kla.com). Such Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic are not incorporated by reference into this earnings release.

About KLA:
KLA Corporation ("KLA") develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (ir.kla.com). Additional information may be found at: www.kla.com

Note Regarding Forward-Looking Statements:
Statements in this press release other than historical facts, such as statements pertaining to the amount and timing of dividends, the amount and timing of share repurchases, total revenues, GAAP and non-GAAP gross margin and GAAP and non-GAAP diluted EPS for the quarter ending September 30, 2025, are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including, but not limited to: our vulnerability to a weakening in the condition of the financial markets and the global economy; risks related to our international operations; evolving Bureau of Industry and Security of the U.S. Department of Commerce rules and regulations and their impact on our ability to sell products to and provide services to certain customers in China; tariffs and other trade restrictions; costly intellectual property disputes that could result in our inability to sell or use the challenged technology; risks related to the legal, regulatory and tax environments in which we conduct our business; differing stakeholder expectations, requirements and attention to ESG matters and the resulting costs, risks and impact on our business; unexpected delays, difficulties and expenses in executing against our environmental, climate, or other ESG target, goals and commitments; our ability to attract, retain and motivate key personnel; our vulnerability to disruptions and delays at our third-party service providers; cybersecurity threats, cyber incidents affecting our and our business partners' systems and networks; our inability to access critical information in a timely manner due to system failures; risks related to acquisitions, integrations, strategic alliances or collaborative arrangements; climate change, earthquake, flood or other natural catastrophic events, public health crises or terrorism and the adverse impact on our business operations; the war between Ukraine and Russia, continued escalation of hostilities in the Middle East, and the significant military activity in those regions; lack of insurance for losses and interruptions caused by terrorists and acts of war, and our self-insurance of certain risks including earthquake risk; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in interest rates and the market values of our portfolio investments; risks related to tax and regulatory compliance audits; any change in taxation rules or practices and our effective tax rate; compliance costs with federal securities laws, rules, regulations, NASDAQ requirements, and evolving accounting standards and practices; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end-markets, or changes in customer capital spending patterns;  our vulnerability to a highly concentrated customer base; the cyclicality of the industries in which we operate; our ability to timely develop new technologies and products that successfully address changes in the industry; risks related to artificial intelligence; our ability to maintain our technology advantage and protect proprietary rights; our ability to compete in the industry;  availability and cost of the materials and parts used in the production of our products; our ability to operate our business in accordance with our business plan; risks related to our debt and leveraged capital structure; we may not be able to declare cash dividends at all or in any particular amount; liability to our customers under indemnification provisions if our products fail to operate properly or contain defects or our customers are sued by third parties due to our products; our government funding for R&D is subject to audit, and potential termination or penalties; we may incur significant restructuring charges or other asset impairment charges or inventory write offs; we are subject to risks related to receivables factoring arrangements and compliance risk of certain settlement agreements with the government; and risks related to the Court of Chancery of the State of Delaware being the sole and exclusive forum for certain actions and proceedings. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this press release, please refer to KLA's Annual Report on Form 10-K for the year ended June 30, 2024, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA assumes no obligation to, and does not currently intend to, update these forward-looking statements.

KLA Corporation




Condensed Consolidated Unaudited Balance Sheets








(In thousands)

June 30, 2025


June 30, 2024

ASSETS




Current assets:




Cash and cash equivalents

$               2,078,908


$               1,977,129

Marketable securities

2,415,715


2,526,866

Accounts receivable, net

2,263,915


1,833,041

Inventories

3,212,149


3,034,781

Other current assets

728,102


659,327

  Total current assets

10,698,789


10,031,144

Land, property and equipment, net

1,252,775


1,109,968

Goodwill, net

1,792,193


2,015,726

Deferred income taxes

1,105,770


915,241

Purchased intangible assets, net

444,785


668,764

Other non-current assets

773,614


692,723

  Total assets

$            16,067,926


$            15,433,566

LIABILITIES AND STOCKHOLDERS' EQUITY

Current liabilities:




Accounts payable

$                  458,509


$                  359,487

Deferred system revenue

816,834


985,856

Deferred service revenue

548,011


501,926

Current portion of long-term debt


749,936

Other current liabilities

2,262,441


2,063,569

  Total current liabilities

4,085,795


4,660,774

Long-term debt

5,884,257


5,880,199

Deferred tax liabilities

446,945


486,690

Deferred service revenue

348,844


294,460

Other non-current liabilities

609,632


743,115

  Total liabilities

11,375,473


12,065,238

Stockholders' equity:




Common stock and capital in excess of par value

2,511,922


2,280,133

Retained earnings

2,179,330


1,137,270

Accumulated other comprehensive income (loss)

1,201


(49,075)

  Total stockholders' equity

4,692,453


3,368,328

  Total liabilities and stockholders' equity

$            16,067,926


$            15,433,566

 

KLA Corporation







Condensed Consolidated Unaudited Statements of Operations
















Three Months Ended June 30,


Twelve Months Ended June 30,

(In thousands, except per share amounts)

2025


2024


2025


2024

Revenues:








Product

$    2,472,182


$    1,954,837


$    9,472,854


$    7,482,679

Service

702,559


613,898


2,683,308


2,329,568

Total revenues

3,174,741


2,568,735


12,156,162


9,812,247

Costs and expenses:








Costs of revenues

1,207,286


1,010,551


4,751,867


3,928,073

Research and development

352,989


325,759


1,360,334


1,278,981

Selling, general and administrative

262,706


255,106


1,029,734


969,509

Impairment of goodwill and purchased intangible assets



239,100


289,474

Interest expense

73,125


82,836


302,166


311,253

Other expense (income), net

(50,164)


(50,560)


(171,487)


(155,075)

Income before income taxes

1,328,799


945,043


4,644,448


3,190,032

Provision for income taxes

125,950


108,597


582,805


428,136

Net income

$    1,202,849


$       836,446


$    4,061,643


$    2,761,896

Net income per share:








Basic

$              9.11


$              6.22


$           30.53


$           20.41

Diluted

$              9.06


$              6.18


$           30.37


$           20.28

Weighted-average number of shares:








Basic

132,032


134,462


133,030


135,345

Diluted

132,734


135,342


133,750


136,187

 

KLA Corporation

Condensed Consolidated Unaudited Statements of Cash Flows



Three Months Ended June 30,

(In thousands)

2025


2024

Cash flows from operating activities:




Net income

$           1,202,849


$              836,446

Adjustments to reconcile net income to net cash provided by operating activities:




Depreciation and amortization

96,252


101,001

Unrealized foreign exchange (gain) loss and other

(8,648)


4,214

Asset impairment charges


11,307

Stock-based compensation expense

71,269


58,621

Deferred income taxes

(60,482)


(30,634)

Changes in assets and liabilities, net of assets acquired and liabilities assumed in business acquisitions:

Accounts receivable

(67,608)


(221,958)

Inventories

(48,519)


(32,843)

Other assets

(86,564)


(65,884)

Accounts payable

(8,601)


24,177

Deferred system revenue

(51,515)


(8,613)

Deferred service revenue

35,850


74,096

Other liabilities

90,708


142,685

Net cash provided by operating activities

1,164,991


892,615

Cash flows from investing activities:




Acquisition of intellectual property

(2,100)


Capital expenditures

(100,408)


(60,745)

Proceeds from capital-related government assistance

5,948


Purchases of available-for-sale securities

(748,014)


(602,081)

Proceeds from sale of available-for-sale securities

128,116


36,816

Proceeds from maturity of available-for-sale securities

394,759


488,779

Purchases of trading securities

(30,013)


(21,635)

Proceeds from sale of trading securities

26,367


18,644

Proceeds from other investments


1,430

Net cash used in investing activities

(325,345)


(138,792)

Cash flows from financing activities:




Common stock repurchases

(425,697)


(470,266)

Payment of dividends to stockholders

(253,965)


(197,521)

Issuance of common stock

103,976


96,501

Tax withholding payments related to vested and released restricted stock units

(54,127)


(47,508)

Contingent consideration payable and other, net


(67)

Net cash used in financing activities

(629,813)


(618,861)

Effect of exchange rate changes on cash and cash equivalents

11,053


(6,000)

Net increase in cash and cash equivalents

220,886


128,962

Cash and cash equivalents at beginning of period

1,858,022


1,848,167

Cash and cash equivalents at end of period

$           2,078,908


$           1,977,129

Supplemental cash flow disclosures:




Income taxes paid, net

$              231,115


$                65,553

Interest paid, net of capitalized interest

$                  7,772


$                25,171

Non-cash activities:




Dividends payable - financing activities

$                  2,300


$                  1,953

Unsettled common stock repurchase - financing activities

$                  5,500


$                  5,500

Accrued purchase of land, property and equipment - investing activities

$                25,740


$                13,849

 

KLA Corporation

Segment Information (Unaudited)


The following is a summary of results for each of our three reportable segments and reconciliations to total revenues for the indicated periods:


Three Months Ended June 30,


Twelve Months Ended June 30,

(In thousands)

2025


2024


2025


2024

Revenues:








Semiconductor Process Control

$     2,877,647


$     2,307,994


$   10,947,359


$     8,733,556

Specialty Semiconductor Process

141,866


121,268


587,107


528,701

PCB and Component Inspection

154,106


140,017


621,721


552,491

Total revenues for reportable segments

3,173,619


2,569,279


12,156,187


9,814,748

Corporate allocations and effects of changes in foreign
currency exchange rates

1,122


(544)


(25)


(2,501)

Total revenues

$     3,174,741


$     2,568,735


$   12,156,162


$     9,812,247

 

KLA Corporation

Condensed Consolidated Unaudited Supplemental Information


Reconciliation of GAAP Net Income to Non-GAAP Net Income




Three Months Ended


Twelve Months Ended

(In thousands, except per share amounts)


June 30, 2025


March 31, 2025


June 30, 2024


June 30, 2025


June 30, 2024

GAAP net income


$  1,202,849


$   1,088,416


$     836,446


$  4,061,643


$  2,761,896

Adjustments to reconcile GAAP net income to
non-GAAP net income:











Acquisition-related charges

a

50,677


53,663


58,777


219,690


239,901

Restructuring, severance and other charges

b

2,133



17,721


7,128


21,033

Impairment of goodwill and purchased intangible assets

c




239,100


289,474

Income tax effect of non-GAAP adjustments

d

(18,559)


(18,306)


(23,227)


(79,511)


(86,311)

Discrete tax items

e

7,322


(3,113)


3,092


3,630


7,630

Non-GAAP net income


$  1,244,422


$   1,120,660


$     892,809


$  4,451,680


$  3,233,623

GAAP net income per diluted share


$            9.06


$             8.16


$            6.18


$          30.37


$         20.28

Non-GAAP net income per diluted share


$            9.38


$             8.41


$            6.60


$          33.28


$         23.74

Shares used in diluted net income per share calculation


132,734


133,303


135,342


133,750


136,187

 

Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations


(In thousands)

Acquisition-Related
Charges


Restructuring,
Severance and Other
Charges


Total Pre-tax GAAP to
Non-GAAP
Adjustments

Three Months Ended June 30, 2025






Costs of revenues

$                   39,024


$                     1,233


$                   40,257

Research and development


(3)


(3)

Selling, general and administrative

11,653


903


12,556

Total in three months ended June 30, 2025

$                   50,677


$                     2,133


$                   52,810

Three Months Ended March 31, 2025






Costs of revenues

$                   41,838


$                           —


$                   41,838

Selling, general and administrative

11,825



11,825

Total in three months ended March 31, 2025

$                   53,663


$                           —


$                   53,663

Three Months Ended June 30, 2024






Costs of revenues

$                   45,937


$                     2,240


$                   48,177

Research and development


2,230


2,230

Selling, general and administrative

12,840


13,251


26,091

Total in three months ended June 30, 2024

$                   58,777


$                   17,721


$                   76,498

 

Free Cash Flow Reconciliation




Three Months Ended June 30,


Twelve Months Ended June 30,

(In thousands)


2025


2024


2025


2024

Net cash provided by operating activities


$           1,164,991


$              892,615


$           4,081,903


$           3,308,575

Capital expenditures


(100,408)


(60,745)


(335,259)


(277,384)

Free cash flow


$           1,064,583


$              831,870


$           3,746,644


$           3,031,191

 

Capital Returns Calculation




Three Months Ended June 30,


Twelve Months Ended June 30,

(In thousands)


2025


2024


2025


2024

Payments of dividends to stockholders


$              253,965


$              197,521


$              904,594


$              773,041

Common stock repurchases


425,697


470,266


2,149,946


1,735,746

Capital returns


$              679,662


$              667,787


$           3,054,540


$           2,508,787

 

First Quarter Fiscal 2026 Guidance


Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS



Three Months Ending September 30, 2025

(In millions, except per share amounts)


Low


High

GAAP net income per diluted share


$7.51


$9.05

Acquisition-related charges

a

0.38


0.38

Restructuring, severance and other charges

b

0.01


0.01

Income tax effect of non-GAAP adjustments

d

(0.14)


(0.14)

Non-GAAP net income per diluted share


$7.76


$9.30

Shares used in net income per diluted share calculation


132.4


132.4

 

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin




Three Months Ending September 30, 2025



Low


High

GAAP gross margin


59.7 %


61.7 %

Acquisition-related charges

a

1.3 %


1.3 %

Non-GAAP gross margin


61.0 %


63.0 %

 

The non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA's financial results presented in accordance with United States GAAP.

To supplement our Condensed Consolidated Financial Statements presented in accordance with GAAP, we provide certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain gains, costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user's overall understanding of our operating performance and our prospects in the future. Specifically, we believe that the non-GAAP information, including non-GAAP net income, non-GAAP net income per diluted share, non-GAAP gross margin and free cash flow, provides useful measures to both management and investors regarding financial and business trends relating to our financial performance by excluding certain costs and expenses that we believe are not indicative of our core operating results to help investors compare our operating performances with our results in prior periods as well as with the performance of other companies. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics are inherently subject to significant discretion (for example, determining which costs and expenses to exclude when calculating such a metric). As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP. The following are descriptions of the adjustments made to reconcile GAAP net income to non-GAAP net income:

a)

Acquisition-related charges primarily include amortization of intangible assets and write-offs due to abandonment of in-process research and development projects. Although we exclude the effect of amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and such amortization of intangible assets related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of these intangible assets contributed to our revenues earned during the periods presented and are expected to contribute to our future period revenues as well.



b)

Restructuring, severance and other charges primarily include costs associated with employee severance and, in the three months ended June 30, 2024, write-downs of certain right of use assets and fixed assets that were abandoned.



c)

Impairment of goodwill and purchased intangible assets in the three months ended Dec. 31, 2024, March 31, 2024 and Dec. 31, 2023, include non-cash expense recognized as a result of the company's testing for goodwill impairment and long-lived assets impairment. The impairment charge in fiscal 2025 resulted from the continued deterioration of the long-term forecast for our PCB business. The impairment charge in fiscal 2024 resulted from the downward revision of financial outlook for our PCB and Display reporting units and the subsequent decision to exit the Company's Display business that was based on many factors, including the cancellation of a significant new technology project by a major customer in the third quarter of fiscal 2024. Management believes that it is appropriate to exclude these impairment charges as they are not indicative of ongoing operating results and therefore limit comparability. Management also believes excluding this item helps investors compare our operating performance with our results in prior periods as well as with the performance of other companies.



d)

Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above.



e)

Discrete tax items in the three months ended March 31, 2025 include a deferred tax impact relating to the amortization of certain intellectual property as a result of an internal restructuring of ownership rights to better align with how our business operates. Discrete tax items in the three and twelve months ended June 30, 2025 also include the recognition of a net deferred tax liability on foreign currency gains/losses resulting from new tax legislation and a tax benefit from an internal restructuring. Discrete tax items in the twelve months ended June 30, 2024 include a one-time tax benefit resulting from changes made to our international structure to better align ownership of certain intellectual property rights with how our business operates. Discrete tax items in all periods presented include a tax impact relating to the amortization of the aforementioned tax benefits or similar tax benefits recorded in other periods.

 

Cision View original content:https://www.prnewswire.com/news-releases/kla-corporation-reports-fiscal-2025-fourth-quarter-and-full-year-results-302518875.html

SOURCE KLA Corporation

FAQ

What were KLA Corporation's (KLAC) Q4 2025 earnings results?

KLA reported Q4 2025 revenues of $3.175 billion, GAAP EPS of $9.06, and non-GAAP EPS of $9.38. The company achieved record quarterly free cash flow of $1.06 billion.

How much revenue did KLA (KLAC) generate in fiscal year 2025?

KLA generated total revenues of $12.16 billion for the fiscal year 2025, with GAAP net income of $4.06 billion and GAAP diluted EPS of $30.37.

What is KLA's (KLAC) guidance for Q1 2026?

KLA expects Q1 2026 revenues of $3.15 billion ±$150 million, with non-GAAP gross margin of 62.0% ±1.0% and non-GAAP diluted EPS of $8.53 ±$0.77.

How much cash did KLA (KLAC) return to shareholders in Q4 2025?

KLA returned $679.7 million to shareholders in Q4 2025, with total capital returns for fiscal year 2025 reaching $3.05 billion.

What was KLA's (KLAC) free cash flow in Q4 2025?

KLA achieved record quarterly free cash flow of $1.06 billion in Q4 2025, marking the first time quarterly free cash flow exceeded $1 billion.
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