$KLAC · KLA CORP
KLA Corporation filed its 10-Q for Q1 FY2027 (quarter ended September 30, 2026), reporting total revenues of $4.136B, up 28.9% YoY from $3.210B. Net income rose to $1.549B ($1.18 diluted EPS) from $1.121B ($0.85 diluted EPS). Gross margin improved to 61.9% from 61.3% a year ago. The company repurchased $943M in stock and paid $0.230/share in dividends during the quarter.
- Revenue of $4.136B, up 28.9% YoY from $3.210B, driven by product revenue of $3.285B.
- Diluted EPS of $1.18 vs $0.85 a year ago, a 38.8% increase.
- Gross margin expanded to 61.9% from 61.3% YoY, the highest among the last five quarters.
- China revenue grew to $1.426B (34.5% of total), up from $1.267B (39.5%) a year ago.
- Share repurchases totaled $943M in the quarter; $0.230 per share dividend declared.
Extended-hours trading shows KLAC at $164.80, down 1.57% from the regular-session close of $167.43, despite the strong top- and bottom-line beats. The regular session had rallied 5.45% ahead of the print, suggesting some results were priced in.
KLA's 28.9% revenue surge and 61.9% gross margin confirm the semiconductor equipment cycle is accelerating, but the 34.5% China exposure is a geopolitical tripwire.
KLA's 28.9% YoY revenue growth and 61.9% gross margin reinforce the ongoing semiconductor capital-equipment upcycle. Peer comps (AMAT, LRCX, ASML) have also reported strong demand, but KLA's process-control dominance gives it structural margin advantages in this cycle.
China accounted for 34.5% of revenue ($1.43B); any tightening of U.S. export controls on semiconductor equipment to China poses a concentrated revenue risk. Inventories rose to $4.09B from $3.65B sequentially, which could signal demand uncertainty or supply-chain buildup.