Kulicke & Soffa Reports Second Quarter 2026 Results
Rhea-AI Summary
Kulicke & Soffa (NASDAQ: KLIC) reported fiscal Q2 2026 results for the quarter ended April 4, 2026: net revenue $242.6M, GAAP net income $35.1M (GAAP diluted EPS $0.66) and non-GAAP net income $42.1M (non-GAAP diluted EPS $0.79).
Gross margin was 49.3%. Management said capex will rise from ~$12M to ~$22M in FY2026 to expand Thermo-Compression bonding production, supporting up to ~$400M of annual TCB system sales. Q3 revenue outlook: ~$310M ±$20M.
Positive
- Net revenue increased to $242.6M (Q2 2026)
- Gross margin improved to 49.3% in Q2 2026
- GAAP net income of $35.1M; GAAP EPS $0.66
- Planned FY2026 capex rising to ~$22M
- Company guidance: Q3 revenue ~$310M ±$20M
Negative
- Inventories rose to $206.3M as of April 4, 2026
- Short-term investments declined to $150.0M from $295.0M
- Operating expenses still elevated at $81.1M in Q2
Key Figures
Market Reality Check
Peers on Argus
KLIC is up 4.03% while peers show mixed moves: FORM +4.69%, CAMT +4.92%, AMBA +3.28%, but ACLS -2.17% and IPGP -2.01%. Momentum scanners only flagged AMBA, suggesting a stock-specific reaction to KLIC’s earnings.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Feb 04 | Q1 2026 earnings | Positive | +19.3% | Returned to solid profitability with higher revenue and positive Q2 2026 guidance. |
| Nov 19 | Q4 2025 earnings | Positive | +10.6% | Reported FY2025 profit, strong cash and sizable buybacks with FY2026 outlook. |
| Aug 06 | Q3 2025 earnings | Negative | +8.9% | Revenue decline and net loss, yet shares rose despite operational headwinds. |
| May 06 | Q2 2025 earnings | Negative | -2.8% | Large loss driven by cessation charges for Electronics Assembly business. |
| Feb 04 | Q1 2025 earnings | Positive | -0.0% | Strong margins and profit despite modest revenue decline and heavy buybacks. |
Earnings reports have typically produced positive reactions, including strong gains on recent profitable quarters, with occasional rallies even on weaker results.
Over the last several earnings cycles, Kulicke & Soffa has moved from losses and one‑time charges in 2025 toward steadily improving profitability. Prior reports showed rebuilding revenue, expanding gross margin and growing non‑GAAP earnings, with 24‑hour moves often exceeding 7%. The latest Q2 2026 release continues that progression, with higher net revenue of $242.6M, stronger EPS and detailed guidance for Q3 2026. This announcement fits an ongoing narrative of recovery and growth in core semiconductor and advanced solutions markets.
Historical Comparison
In the past five earnings releases, KLIC’s average 24-hour move was 7.2%. Today’s 4.03% gain is a milder but directionally consistent reaction to another profitable quarter.
Earnings since early 2025 trace a shift from charges and intermittent losses toward consistent profitability, higher non-GAAP EPS and more detailed forward guidance.
Market Pulse Summary
This announcement details a profitable Q2 2026 with net revenue of $242.6M, GAAP EPS of $0.66 and non-GAAP EPS of $0.79, plus Q3 guidance of about $310M ±$20M and higher expected EPS. It also highlights capital investment to expand Thermo-Compression bonding capacity and consistent use of non-GAAP metrics. In the past, earnings updates have often produced sizable moves. Investors may track how actual results compare to guidance, margin sustainability around the 49.3% level, and any changes in capital allocation or end-market demand.
Key Terms
non-GAAP financial
thermo-compression bonding technical
adjusted free cash flow financial
equity-based compensation financial
operating margin financial
right-of-use assets financial
cash flow from operations financial
AI-generated analysis. Not financial advice.
Quarterly Results | |||
Fiscal Q2 2026 | Fiscal Q2 2025 | Fiscal Q1 2026 | |
Net Revenue (in thousands) | |||
GAAP EPS – Diluted | |||
Non GAAP EPS - Diluted | |||
A reconciliation between the GAAP and non-GAAP adjusted results is provided in the financial tables included at the end of this press release. See also the "Use of non-GAAP Financial Results" section of this press release.
Lester Wong, Kulicke & Soffa's Interim Chief Executive Officer and Chief Financial Officer, stated, "Demand is stronger than anticipated due to both technology and capacity needs across general semiconductor, memory, automotive and industrial end markets. In addition to helping customers reach their production goals, we are also ramping near-term capital investment to support longer-term Advanced Solutions growth."
The Company anticipates fiscal year 2026 capital expenditure to increase sequentially from approximately
Second Quarter Fiscal 2026 Financial Highlights
- Net revenue of
.$242.6 million - Gross margin of
49.3% . - Net income of
or$35.1 million per share; non-GAAP net income of$0.66 or$42.1 million per fully diluted share.$0.79 - GAAP cash flow from operations of
; Adjusted free cash flow of$10.3 million .$6.3 million - The Company repurchased a total of 3.0 thousand shares of common stock at a cost of
.$0.1 million
Third Quarter Fiscal 2026 Outlook
K&S currently expects net revenue in the third quarter of fiscal 2026 ending July 4, 2026 to be approximately
A reconciliation between the GAAP and non-GAAP financial outlook is provided in the financial tables included at the end of this press release.
Earnings Conference Webcast
A webcast to discuss these results will be held on May 7, 2026, beginning at 8:00 am ET. The live webcast link, supplemental earnings presentation, and archived webcast will be available at investor.kns.com. To access the audio-only portion of the live webcast, parties may call +1-877-407-8037, or internationally, +1-201-689-8037.
An audio-only replay of the webcast will also be available approximately one hour after the completion of the live call by calling +1-877-660-6853, or internationally, +1-201-612-7415 and referencing access code 13757797.
Use of Non-GAAP Financial Results
In addition to
Management uses both GAAP metrics as well as these non-GAAP metrics to evaluate the Company's operating and financial results. Non-GAAP financial measures may not provide information that is directly comparable to that provided by other companies in the Company's industry, as other companies in the industry may calculate non-GAAP financial results differently. In addition, there are limitations in using non-GAAP financial measures because the non-GAAP financial measures are not prepared in accordance with GAAP, may be different from non-GAAP financial measures used by other companies and exclude expenses that may have a material impact on the Company's reported financial results. The presentation of non-GAAP items is meant to supplement, but not substitute for, GAAP financial measures or information. The Company believes the presentation of non-GAAP results in combination with GAAP results provides better transparency to the investment community when analyzing business trends, providing meaningful comparisons with prior period performance and enhancing investors' ability to view the Company's results from management's perspective. A reconciliation of each non-GAAP financial measure to the most directly comparable GAAP measure discussed in this press release is contained in the financial tables at the end of this press release.
About Kulicke & Soffa
Kulicke & Soffa is a global leader in semiconductor assembly technology, advancing device performance across automotive, compute, industrial, memory and communications markets. Founded on innovation in 1951, K&S is uniquely positioned to overcome increasingly dynamic process challenges – creating and delivering long-term value by aligning technology with opportunity.
Caution Concerning Results, Forward-Looking Statements and Certain Risks Related to our Business
In addition to historical statements, this press release contains statements relating to future events and our future results. These statements are "forward-looking" statements within the meaning of the Private Securities Litigation Reform Act of 1995. While these forward-looking statements represent our judgments and future expectations concerning our business, including the importance and competitiveness of our products and other emerging technology transitions, a number of risks, uncertainties and other important factors could cause actual developments and results to differ materially from our expectations. These factors include, but are not limited to, failures or delays in completing the Company's cessation of its Electronics Assembly equipment business, the persistent macroeconomic headwinds on our business, actual or potential inflationary pressures, interest rate and risk premium adjustments, falling customer sentiment, or economic recession caused directly or indirectly by geopolitical tensions, our ability to develop, manufacture and gain market acceptance of new products, our ability to operate our business in accordance with our business plan and the other factors listed or discussed in our Annual Report on Form 10-K for the fiscal year ended October 4, 2025, filed on November 20, 2025, and our other filings with the Securities and Exchange Commission. Kulicke and Soffa Industries, Inc. is under no obligation to (and expressly disclaims any obligation to) update or alter its forward-looking statements whether as a result of new information, future events or otherwise.
Contact:
Kulicke and Soffa Industries, Inc.
Joseph Elgindy
Finance
P: +1-215-784-7518
KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF OPERATIONS (In thousands, except per share data) (Unaudited) | |||||||
Three months ended | Six months ended | ||||||
April 4, 2026 | March 29, 2025 | April 4, 2026 | March 29, 2025 | ||||
Net revenue | $ 242,621 | $ 161,986 | $ 442,246 | $ 328,110 | |||
Cost of sales | 122,917 | 121,602 | 223,587 | 200,642 | |||
Gross profit | 119,704 | 40,384 | 218,659 | 127,468 | |||
Selling, general and administrative | 42,742 | 48,014 | 83,501 | 86,628 | |||
Research and development | 38,396 | 37,220 | 78,772 | 75,028 | |||
Gain relating to cessation of business | — | — | — | (75,987) | |||
Impairment charges | — | 39,817 | — | 39,817 | |||
Operating expenses | 81,138 | 125,051 | 162,273 | 125,486 | |||
Income / (Loss) from operations | 38,566 | (84,667) | 56,386 | 1,982 | |||
Interest income | 3,980 | 5,622 | 8,739 | 11,974 | |||
Interest expense | (37) | (36) | (77) | (63) | |||
Income / (Loss) before income taxes | 42,509 | (79,081) | 65,048 | 13,893 | |||
Provision for income taxes | 7,361 | 5,438 | 13,104 | 16,770 | |||
Net income / (loss) | $ 35,148 | $ (84,519) | $ 51,944 | $ (2,877) | |||
Net income / (loss) per share: | |||||||
Basic | $ 0.67 | $ (1.59) | $ 0.99 | $ (0.05) | |||
Diluted | $ 0.66 | $ (1.59) | $ 0.98 | $ (0.05) | |||
Cash dividends declared per share | $ 0.205 | $ 0.205 | $ 0.41 | $ 0.41 | |||
Weighted average shares outstanding: | |||||||
Basic | 52,327 | 53,311 | 52,323 | 53,551 | |||
Diluted | 53,121 | 53,311 | 52,963 | 53,551 | |||
KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED BALANCE SHEETS (In thousands) (Unaudited) | |||
As of | |||
April 4, 2026 | October 4, 2025 | ||
ASSETS | |||
Current assets | |||
Cash and cash equivalents | $ 337,864 | $ 215,708 | |
Short-term investments | 150,000 | 295,000 | |
Accounts and other receivable, net | 255,610 | 183,538 | |
Inventories, net | 206,294 | 160,225 | |
Prepaid expenses and other current assets | 32,549 | 47,064 | |
Total current assets | 982,317 | 901,535 | |
Property, plant and equipment, net | 57,924 | 58,993 | |
Operating right-of-use assets | 33,921 | 32,193 | |
Goodwill | 69,522 | 69,522 | |
Intangible assets, net | 4,984 | 5,600 | |
Deferred tax assets | 16,144 | 16,109 | |
Equity investments | 7,881 | 6,978 | |
Investment in debt securities | 10,000 | 10,000 | |
Other assets | 3,291 | 3,412 | |
TOTAL ASSETS | $ 1,185,984 | $ 1,104,342 | |
LIABILITIES AND SHAREHOLDERS' EQUITY | |||
Current liabilities | |||
Accounts payable | $ 85,445 | $ 57,178 | |
Operating lease liabilities | 6,192 | 6,178 | |
Accrued expenses and other current liabilities | 119,230 | 97,786 | |
Income taxes payable | 22,653 | 27,029 | |
Total current liabilities | 233,520 | 188,171 | |
Deferred tax liabilities | 34,892 | 35,533 | |
Income taxes payable | 17,289 | 16,580 | |
Operating lease liabilities | 33,594 | 32,372 | |
Other liabilities | 9,143 | 10,195 | |
TOTAL LIABILITIES | $ 328,438 | $ 282,851 | |
SHAREHOLDERS' EQUITY | |||
Common stock, without par value | 627,269 | 620,043 | |
Treasury stock, at cost | (976,253) | (974,202) | |
Retained earnings | 1,229,990 | 1,199,500 | |
Accumulated other comprehensive loss | (23,460) | (23,850) | |
TOTAL SHAREHOLDERS' EQUITY | $ 857,546 | $ 821,491 | |
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ 1,185,984 | $ 1,104,342 | |
KULICKE AND SOFFA INDUSTRIES, INC. CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS (In thousands) (Unaudited) | |||||||
Three months ended | Six months ended | ||||||
(in thousands) | April 4, 2026 | March 29, 2025 | April 4, 2026 | March 29, 2025 | |||
Net cash provided by operating activities | $ 10,271 | $ 79,877 | $ 1,338 | $ 98,779 | |||
Net cash provided by/(used in) investing activities | 45,368 | (38,415) | 138,693 | 43,624 | |||
Net cash used in financing activities | (283) | (33,506) | (18,171) | (81,958) | |||
Effect of exchange rate changes on cash and cash equivalents | 380 | 238 | 296 | (1,073) | |||
Changes in cash and cash equivalents | 55,736 | 8,194 | 122,156 | 59,372 | |||
Cash and cash equivalents, beginning of period | 282,128 | 278,325 | 215,708 | 227,147 | |||
Cash and cash equivalents, end of period | $ 337,864 | $ 286,519 | $ 337,864 | $ 286,519 | |||
Short-term investments | 150,000 | 295,000 | 150,000 | 295,000 | |||
Total cash, cash equivalents and short-term investments | $ 487,864 | $ 581,519 | $ 487,864 | $ 581,519 | |||
Reconciliation of to Non-GAAP Income from Operations and Operating Margin (In thousands, except percentages) (Unaudited) | ||||||
Three months ended | ||||||
April 4, 2026 | March 29, 2025 | January 3, | ||||
Net revenue | $ 242,621 | $ 161,986 | $ 199,625 | |||
38,566 | (84,667) | 17,820 | ||||
15.9 % | (52.3) % | 8.9 % | ||||
Pre-tax non-GAAP items: | ||||||
Amortization related to intangible assets | 307 | 1,171 | 308 | |||
Restructuring | 418 | 8,806 | 1,997 | |||
Equity-based compensation | 6,991 | 7,493 | 5,330 | |||
Impairment charges | — | 39,817 | — | |||
Other income – escrow release on sale of subsidiary | — | — | (304) | |||
Non-GAAP income / (loss) from operations | $ 46,282 | $ (27,380) | $ 25,151 | |||
Non-GAAP operating margin | 19.1 % | (16.9) % | 12.6 % | |||
Reconciliation of (In thousands, except percentages and per share data) (Unaudited) | ||||||
Three months ended | ||||||
April 4, 2026 | March 29, | January 3, | ||||
Net revenue | $ 242,621 | $ 161,986 | $ 199,625 | |||
35,148 | (84,519) | 16,796 | ||||
14.5 % | (52.2) % | 8.4 % | ||||
Non-GAAP adjustments: | ||||||
Amortization related to intangible assets | 307 | 1,171 | 308 | |||
Restructuring | 418 | 8,806 | 1,997 | |||
Equity-based compensation | 6,991 | 7,493 | 5,330 | |||
Impairment charges | — | 39,817 | — | |||
Other income – escrow release on sale of subsidiary | — | — | (304) | |||
Net income tax benefit on non-GAAP items | (728) | (639) | (986) | |||
Total non-GAAP adjustments | $ 6,988 | $ 56,648 | $ 6,345 | |||
Non-GAAP net income / (loss) | $ 42,136 | $ (27,871) | $ 23,141 | |||
Non-GAAP net margin | 17.4 % | (17.2) % | 11.6 % | |||
Basic | $ 0.67 | $ (1.59) | $ 0.32 | |||
Diluted(a) | $ 0.66 | $ (1.59) | $ 0.32 | |||
Non-GAAP adjustments per share:(b) | ||||||
Basic | $ 0.14 | $ 1.07 | $ 0.12 | |||
Diluted | $ 0.13 | $ 1.07 | $ 0.12 | |||
Non-GAAP net income / (loss) per share: | ||||||
Basic | $ 0.81 | $ (0.52) | $ 0.44 | |||
Diluted(c) | $ 0.79 | $ (0.52) | $ 0.44 | |||
Weighted average shares outstanding: | ||||||
Basic | 52,327 | 53,311 | 52,319 | |||
Diluted | 53,121 | 53,311 | 52,521 | |||
(a) | GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating GAAP diluted net loss per share because it would be anti-dilutive. |
(b) | Non-GAAP adjustments per share include amortization related to intangible assets acquired through business combinations, costs associated with restructuring and severance, equity-based compensation expenses, impairment relating to assets acquired through business combinations, long-lived asset impairment relating to business cessation or disposal, gain relating to business cessation or disposal, and income tax effects associated with the foregoing non-GAAP items. |
(c) | Non-GAAP diluted net earnings per share reflects any dilutive effect of outstanding restricted stock, but that effect is excluded when calculating Non-GAAP diluted net loss per share because it would be anti-dilutive. |
Reconciliation of to Non-GAAP Adjusted Free Cash Flow (In thousands, except percentages) (unaudited) | ||||||
Three months ended | ||||||
April 4, 2026 | March 29, | January 3, | ||||
$ 10,271 | $ 79,877 | $ (8,933) | ||||
Purchases of property, plant and equipment | (4,077) | (1,954) | (2,676) | |||
Proceeds from sales of property, plant and equipment | 74 | 60 | 1 | |||
Non-GAAP adjusted free cash flow | $ 6,268 | $ 77,983 | $ (11,608) | |||
Reconciliation of (In millions, except per share data) (Unaudited) | ||||||
Third quarter of fiscal 2026 ending July 4, 2026 | ||||||
GAAP Outlook | Adjustments | Non-GAAP Outlook | ||||
Net revenue | +/- | — | +/- | |||
Operating expenses | +/- | +/- | ||||
Diluted EPS(1) | +/- | +/- | ||||
Non-GAAP Adjustments | ||
A. Equity-based compensation - Cost of sales | 0.4 | |
B. Equity-based compensation - Selling, general and administrative and Research and development | 6.6 | |
C. Amortization related to intangible assets | 0.3 | |
D. Restructuring expenses | 0.5 | |
E. Net income tax effect of the above items | (0.7) |
(1) GAAP and non-GAAP diluted EPS based on approximately 53.0 million diluted weighted average shares outstanding.
The tables above reconcile our GAAP to non-GAAP guidance based on the current outlook. The guidance does not incorporate the impact of any potential business combinations, divestitures, unannounced restructuring activities, strategic investments and other significant transactions. The timing and impact of such items are dependent on future events that may be uncertain or outside of our control.
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SOURCE Kulicke & Soffa Industries, Inc.