KLA Reports Fiscal 2025 Q3 Results

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KLA Corporation announced financial and operating results for its third quarter of fiscal year 2025, which ended on March 31, 2025, and reported GAAP net income of $1.09 billion and GAAP net income per diluted share of $8.16 on revenues of $3.06 billion.

"KLA's March quarter results were above the midpoint of our guidance ranges and established a strong start to the calendar year. Though global trade dynamics are driving uncertainty across the global economy, to date, we have received no indications of demand changes from our customers for calendar year 2025," said Rick Wallace, president and CEO, KLA Corporation. "We remain encouraged by KLA's growing relevancy in semiconductor manufacturing. Our leadership in process control is a key enabler of today's leading-edge AI investments by our customers and continues to be affirmed through recently published market share results. Our capital return announcements today reflect this confidence in the long-term value of KLA. As always, the KLA Operating Model continues to be fundamental as we make critical investments to drive differentiation across our product portfolio, and it guides our execution against long-term strategic objectives."

Fourth Quarter Fiscal 2025 Guidance

The following details our guidance for the fourth quarter of fiscal 2025 ending in June:

• Total revenues is expected to be in a range of $3.075 billion +/- $150 million
• GAAP gross margin is expected to be in a range of 61.7% +/- 1.0%
• Non-GAAP gross margin is expected to be in a range of 63.0% +/- 1.0%
• GAAP diluted EPS is expected to be in a range of $8.28 +/- $0.78
• Non-GAAP diluted EPS is expected to be in a range of $8.53 +/- $0.78

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.

Dividend Level Increase and Additional Share Repurchase Authorization

KLA Corporation is also announcing an increase in the quarterly dividend level to $1.90 per share from $1.70 per share, the sixteenth consecutive annual increase in the quarterly dividend level for KLA beginning with the dividend anticipated to be declared in May 2025. The declaration and payment of future dividends is subject to the Board's discretion and will depend on financial and legal requirements and other considerations. The Company is also announcing authorization from the Board of Directors to repurchase up to $5 billion of the Company's common stock. This is in addition to the existing share repurchase authorization, which had approximately $457 million remaining as of March 31, 2025.

Repurchases can be made using a variety of methods, which may include open market purchases, privately negotiated transactions, accelerated share repurchase programs, or otherwise, all in accordance with the requirements of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of its common stock, and the repurchase programs may be suspended or discontinued at any time at the Company's discretion.

"Today's announcement is consistent with KLA's long-standing confidence in our business model focused on KLA market relevance, product differentiation, free cash flow generation and assertive capital allocation," commented Wallace.