KLA Corporation Reports Fiscal 2026 Third Quarter Results

Rhea-AI Summary

KLA (NASDAQ: KLAC) reported Q3 FY2026 revenue of $3.415 billion and GAAP diluted EPS of $9.12 for the quarter ended March 31, 2026. GAAP net income was $1.201 billion. Free cash flow for the last twelve months was $4.01 billion.

The board approved a quarterly dividend increase to $2.30 per share beginning with the May 2026 declaration and authorized an additional $7 billion for share repurchases. Q4 guidance: revenue $3.575B +/- $200M; GAAP diluted EPS $9.66 +/- $1.00.

Positive

• Total revenue of $3.415B in Q3 FY2026 (above midpoint of guidance)
• GAAP diluted EPS of $9.12 and non-GAAP diluted EPS of $9.40
• Year-over-year revenue increase of >10% (Q3 FY2026 vs Q3 FY2025)
• LTM free cash flow of $4.01B and operating cash flow LTM of $4.40B
• Board approved dividend to $2.30 and $7B additional repurchase authorization
• Capital returns of $3.15B over the last twelve months

Negative

• None.

News Market Reaction – KLAC

-3.63%

24 alerts

-3.63% Session close to close

-6.4% Trough in 2 hr 23 min

$238.06B Market Cap

0.2x Rel. Volume

In the Apr 30 session, KLAC declined 3.63%, reflecting a moderate negative market reaction. Argus tracked a trough of -6.4% from its starting point during tracking. Our momentum scanner triggered 24 alerts that day, indicating elevated trading interest and price volatility.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement details solid Q3 FY2026 performance, with revenue of $3.415 billion and non‑GAAP E...

Analysis

This announcement details solid Q3 FY2026 performance, with revenue of $3.415 billion and non‑GAAP EPS of $9.40 both above guidance midpoints, supported by strong cash generation. Management outlined higher future capital returns via a $2.30 quarterly dividend and an additional $7 billion repurchase authorization, extending the capital return theme seen in recent filings. Investors may watch upcoming quarters’ revenue, gross margin ranges, and execution against the Q4 FY2026 guidance to assess the durability of this momentum.

Key Figures

Q3 FY2026 Revenue: $3.415 billion GAAP diluted EPS: $9.12 Non-GAAP diluted EPS: $9.40 +5 more

8 metrics

Q3 FY2026 Revenue $3.415 billion Total revenues for fiscal 2026 third quarter

GAAP diluted EPS $9.12 Q3 FY2026, above guidance midpoint

Non-GAAP diluted EPS $9.40 Q3 FY2026, above guidance midpoint

Operating cash flow $707.5 million Cash flow from operating activities in the quarter

Free cash flow $622.3 million Free cash flow in the quarter

Quarterly dividend level $2.30 per share New dividend level beginning with expected May 2026 declaration

Share repurchase authorization $7 billion Additional authorization for common stock repurchases

Q4 revenue guidance $3.575 billion +/- $200 million Total revenue guidance for Q4 FY2026

Historical Context

5 past events · Latest: Mar 12 (Positive)

Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Mar 12	Capital return update	Positive	-3.8%	Announced $7B supplemental buyback and 21% dividend increase, reaffirmed guidance.
Feb 05	Dividend declaration	Positive	+8.4%	Declared $1.90 quarterly dividend with near‑term cash return to shareholders.
Jan 29	Earnings results	Positive	-15.2%	Reported strong Q2 FY2026 revenues and EPS with solid cash generation.
Jan 15	Innovation awards	Positive	+7.7%	Peer Axalta received multiple innovation awards for new coatings technologies.
Nov 06	Dividend declaration	Positive	-1.1%	Declared $1.90 per share dividend with specified record and payment dates.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent history shows several instances where positive capital return and earnings updates were followed by negative price reactions.

Recent Company History

Over the past six months, KLAC has repeatedly highlighted strong fundamentals and capital returns. Q2 FY2026 results on Jan 29, 2026 showed multi‑billion‑dollar revenue and earnings yet saw a double‑digit percentage decline the next day. Investor Day on Mar 12, 2026 added a $7.0B repurchase and higher dividend but again coincided with a pullback. Routine dividend announcements have elicited mixed reactions. Against this backdrop, the latest Q3 FY2026 beat and higher future dividend continue a pattern of robust metrics not always translating into positive near‑term price moves.

Key Terms

non-gaap, free cash flow, diluted eps, gross margin, +2 more

6 terms

non-gaap financial

"GAAP diluted EPS was $9.12 and non-GAAP diluted EPS was $9.40..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

free cash flow financial

"...cash flow from operating activities... and free cash flow was $622.3 million..."

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

View in glossary

diluted eps financial

"GAAP diluted EPS was $9.12 and non-GAAP diluted EPS was $9.40..."

Diluted earnings per share (EPS) shows how much profit a company makes for each share of stock, assuming all possible shares from stock options or convertible securities are used. It provides a more conservative estimate than basic EPS, accounting for potential share increases that could dilute ownership. Investors use diluted EPS to get a clearer picture of a company's true profitability on a per-share basis.

gross margin financial

"GAAP gross margin is expected to be in a range of 60.72% +/- 1.00%"

Gross margin is the difference between how much money a company makes from selling its products and how much it costs to produce them, expressed as a percentage of sales. It shows how efficiently a company is turning sales into profit before other expenses like marketing or salaries. Higher gross margin means the company keeps more money from each sale, which is a good sign of financial health.

View in glossary

guidance financial

"Total revenues were $3.415 billion, above the midpoint of the guidance range..."

Guidance is the information that a company provides about its expected future performance or plans. It helps investors understand what the company aims to achieve and whether it anticipates growth or challenges ahead, much like a weather forecast helps people prepare for upcoming conditions. This information influences investment decisions by giving a clearer picture of the company's outlook.

View in glossary

operating activities financial

"Cash flow from operating activities for the quarter and last twelve months..."

Operating activities are the core actions a business takes to run its everyday operations and generate revenue. This includes activities like selling products or services, paying employees, and managing inventory. For investors, understanding operating activities helps gauge how well a company is performing its main functions and whether it can sustain its profitability over time.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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• Total revenues were $3.415 billion, above the midpoint of the guidance range of $3.35 billion +/- $150 million;
• GAAP diluted EPS was $9.12 and non-GAAP diluted EPS was $9.40, both above the midpoints of the respective guidance ranges;
• Cash flow from operating activities for the quarter and last twelve months were $707.5 million and $4.40 billion, respectively, and free cash flow was $622.3 million and $4.01 billion, respectively;
• Capital returns for the quarter and last twelve months were $874.8 million and $3.15 billion, respectively; and
• The Board of Directors approved an increase to the quarterly dividend level to $2.30 per share beginning with the dividend expected to be declared in May 2026 and an additional $7 billion for repurchases of our common stock.

MILPITAS, Calif., April 29, 2026 /PRNewswire/ -- KLA Corporation (NASDAQ: KLAC) today announced financial and operating results for its third quarter of fiscal year 2026, which ended on March 31, 2026, and reported GAAP net income of $1.20 billion and GAAP net income per diluted share of $9.12 on revenues of $3.415 billion.

"KLA delivered strong March quarter results exceeding the midpoint of our guidance ranges on both revenue and earnings per share. Our business momentum remains robust, and we are highly confident in our outlook for calendar year 2026," said Rick Wallace, president and CEO of KLA Corporation. "At our recent Investor Day, we highlighted KLA's critical role as a key enabler of the AI ecosystem and our continued benefits from the global AI infrastructure buildout across all major growth vectors, including foundry/logic, memory, advanced packaging, and services. KLA's market leadership was further reinforced by recently published third-party industry reports showing continued market share momentum in process control. Our recent capital return actions, including the 17th consecutive annual dividend increase and an additional $7 billion stock repurchase authorization, underscore our confidence in KLA's durable value creation and the 2030 target model we have outlined."

GAAP Results
	Q3 FY 2026	Q2 FY 2026	Q3 FY 2025
Total Revenues	$3,415 million	$3,297 million	$3,063 million
Net Income	$1,201 million	$1,146 million	$1,088 million
Net Income per Diluted Share	$9.12	$8.68	$8.16
Non-GAAP Results
	Q3 FY 2026	Q2 FY 2026	Q3 FY 2025
Net Income	$1,239 million	$1,168 million	$1,121 million
Net Income per Diluted Share	$9.40	$8.85	$8.41

 

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 2026 third quarter, 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: ir.kla.com.

Fourth Quarter Fiscal 2026 Guidance

The following details our guidance for the fourth quarter of fiscal 2026 ending in June:

• Total revenues are expected to be in a range of $3.575 billion +/- $200 million
• GAAP gross margin is expected to be in a range of 60.72% +/- 1.00%
• Non-GAAP gross margin is expected to be in a range of 61.75% +/- 1.00%
• GAAP diluted EPS is expected to be in a range of $9.66 +/- $1.00
• Non-GAAP diluted EPS is expected to be in a range of $9.87 +/- $1.00

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 June 30, 2026, 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 environment, social and governance ("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 targets, 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, the armed conflict in Iran and elsewhere 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 research and development 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, 2025, 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)	March 31, 2026		June 30, 2025
ASSETS
Current assets:
Cash and cash equivalents	$        1,787,010		$        2,078,908
Marketable securities	3,170,928		2,415,715
Accounts receivable, net	2,304,454		2,263,915
Inventories	3,437,046		3,212,149
Other current assets	651,541		728,102
Total current assets	11,350,979		10,698,789
Land, property and equipment, net	1,363,784		1,252,775
Goodwill, net	1,788,483		1,792,193
Deferred income taxes	1,123,406		1,105,770
Purchased intangible assets, net	300,717		444,785
Other non-current assets	946,146		773,614
Total assets	$       16,873,515		$       16,067,926
LIABILITIES AND STOCKHOLDERS' EQUITY
Current liabilities:
Accounts payable	$           515,009		$           458,509
Deferred system revenue	620,839		816,834
Deferred service revenue	576,503		548,011
Other current liabilities	2,039,204		2,262,441
Total current liabilities	3,751,555		4,085,795
Long-term debt	5,887,063		5,884,257
Deferred tax liabilities	444,182		446,945
Deferred service revenue	251,563		348,844
Other non-current liabilities	708,657		609,632
Total liabilities	11,043,020		11,375,473
Stockholders' equity:
Common stock and capital in excess of par value	2,675,013		2,511,922
Retained earnings	3,187,462		2,179,330
Accumulated other comprehensive income (loss)	(31,980)		1,201
Total stockholders' equity	5,830,495		4,692,453
Total liabilities and stockholders' equity	$       16,873,515		$       16,067,926

KLA Corporation
Condensed Consolidated Unaudited Statements of Operations
	Three Months Ended March 31,				Nine Months Ended March 31,
(In thousands, except per share amounts)	2026		2025		2026		2025
Revenues:
Product	$   2,640,287		$   2,393,821		$   7,616,386		$   7,000,672
Service	774,791		669,208		2,305,534		1,980,749
Total revenues	3,415,078		3,063,029		9,921,920		8,981,421
Costs and expenses:
Costs of revenues	1,327,672		1,175,689		3,841,952		3,544,581
Research and development	388,763		338,043		1,133,095		1,007,345
Selling, general and administrative	291,134		248,905		840,041		767,028
Impairment of goodwill and purchased intangible assets	—		—		—		239,100
Interest expense	70,423		71,889		211,166		229,041
Other expense (income), net	(79,675)		(35,930)		(160,874)		(121,323)
Income before income taxes	1,416,761		1,264,433		4,056,540		3,315,649
Provision for income taxes	215,771		176,017		588,828		456,855
Net income	$   1,200,990		$   1,088,416		$   3,467,712		$   2,858,794
Net income per share
Basic	$           9.17		$           8.21		$         26.41		$         21.44
Diluted	$           9.12		$           8.16		$         26.26		$         21.32
Weighted-average number of shares:
Basic	130,909		132,607		131,318		133,361
Diluted	131,750		133,303		132,073		134,066

KLA Corporation
Condensed Consolidated Unaudited Statements of Cash Flows
	Three Months Ended March 31,
(In thousands)	2026		2025
Cash flows from operating activities:
Net income	$   1,200,990		$   1,088,416
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization	99,088		98,091
Unrealized foreign exchange (gain) loss and other	(14,000)		4,558
Stock-based compensation expense	83,938		70,201
Deferred income taxes	15,089		(35,437)
Net gain on sale of assets	(683)		—
Changes in assets and liabilities:
Accounts receivable	(233,948)		185,975
Inventories	(159,135)		(112,283)
Other assets	(63,783)		14,309
Accounts payable	93,276		(12,227)
Deferred system revenue	(237,250)		(204,221)
Deferred service revenue	(41,737)		5,820
Other liabilities	(34,394)		(31,043)
Net cash provided by operating activities	707,451		1,072,159
Cash flows from investing activities:
Capital expenditures	(85,187)		(82,135)
Proceeds from capital-related government assistance	—		315
Purchases of available-for-sale and equity securities	(1,039,202)		(697,596)
Proceeds from maturity and sale of available-for-sale securities	639,625		471,556
Purchases of trading securities	(48,919)		(53,418)
Proceeds from sale of trading securities	36,924		43,341
Other, net	2,451		(1,866)
Net cash used in investing activities	(494,308)		(319,803)
Cash flows from financing activities:
Common stock repurchases	(625,955)		(506,745)
Payment of dividends to stockholders	(248,836)		(225,774)
Issuance of common stock	1		—
Tax withholding payments related to vested and released restricted stock units	(4,362)		(2,680)
Net cash used in financing activities	(879,152)		(735,199)
Effect of exchange rate changes on cash and cash equivalents	895		2,587
Net increase (decrease) in cash and cash equivalents	(665,114)		19,744
Cash and cash equivalents at beginning of period	2,452,124		1,838,278
Cash and cash equivalents at end of period	$   1,787,010		$   1,858,022
Supplemental cash flow disclosures:
Income taxes paid, net	$      179,496		$      197,594
Interest paid, net of capitalized interest	$      131,392		$      128,814
Non-cash activities:
Dividends payable - financing activities	$         2,293		$         2,247
Unsettled common stock repurchase - financing activities	$         5,499		$         5,499
Accrued purchase of land, property and equipment - investing activities	$        31,941		$        24,322

 

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 March 31,				Nine Months Ended March 31,
(In thousands)	2026		2025		2026		2025
Revenues:
Semiconductor Process Control	$   3,083,912		$   2,738,817		$   8,987,952		$   8,069,711
Specialty Semiconductor Process	164,028		156,500		424,360		445,241
PCB and Component Inspection	167,642		168,552		509,305		467,615
Total revenues for reportable segments	3,415,582		3,063,869		9,921,617		8,982,567
Effects of changes in foreign currency exchange rates	(504)		(840)		303		(1,146)
Total revenues	$   3,415,078		$   3,063,029		$   9,921,920		$   8,981,421

KLA Corporation
Condensed Consolidated Unaudited Supplemental Information
Reconciliation of GAAP Net Income to Non-GAAP Net Income
			Three Months Ended						Nine Months Ended
(In thousands, except per share amounts)			March 31, 2026		Dec. 31, 2025		March 31, 2025		March 31, 2026		March 31, 2025
GAAP net income			$ 1,200,990		$ 1,145,682		$ 1,088,416		$ 3,467,712		$ 2,858,794
Adjustments to reconcile GAAP net income to non-GAAP net income:
	Acquisition-related charges	a	46,978		49,002		53,663		145,006		169,013
	Restructuring, severance and other charges	b	—		—		—		—		4,995
	Impairment of goodwill and purchased intangible assets	c	—		—		—		—		239,100
	Income tax effect of non-GAAP adjustments	d	(17,668)		(18,103)		(18,306)		(54,119)		(60,952)
	Discrete tax items	e	8,328		(8,399)		(3,113)		15,016		(3,692)
Non-GAAP net income			$ 1,238,628		$ 1,168,182		$ 1,120,660		$ 3,573,615		$ 3,207,258
GAAP net income per diluted share			$         9.12		$         8.68		$         8.16		$       26.26		$       21.32
Non-GAAP net income per diluted share			$         9.40		$         8.85		$         8.41		$       27.06		$       23.92
Shares used in diluted net income per share calculation			131,750		132,009		133,303		132,073		134,066

Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations
(In thousands)	Acquisition - Related Charges		Total Pre-tax GAAP to Non-GAAP Adjustments
Three Months Ended March 31, 2026
Costs of revenues	$                  37,106		$                  37,106
Selling, general and administrative	9,872		9,872
Total in three months ended March 31, 2026	$                  46,978		$                  46,978
Three Months Ended Dec. 31, 2025
Costs of revenues	$                  38,052		$                  38,052
Selling, general and administrative	10,950		10,950
Total in three months ended Dec. 31, 2025	$                  49,002		$                  49,002
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

Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow
	Three Months Ended March 31,				Twelve Months Ended March 31,
(In thousands)	2026		2025		2026		2025
Net cash provided by operating activities	$      707,451		$    1,072,159		$    4,401,640		$    3,809,527
Capital expenditures	(85,187)		(82,135)		(387,065)		(295,596)
Free cash flow	$      622,264		$      990,024		$    4,014,575		$    3,513,931

Capital Returns Calculation
	Three Months Ended March 31,				Twelve Months Ended March 31,
(In thousands)	2026		2025		2026		2025
Payments of dividends to stockholders	$      248,836		$      225,774		$    1,006,463		$       848,150
Common stock repurchases	625,955		506,745		2,144,469		2,194,515
Capital returns	$      874,791		$      732,519		$    3,150,932		$    3,042,665

Fourth Quarter Fiscal 2026 Guidance
Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS
		Three Months Ending June 30, 2026
(In millions, except per share amounts)		Low		High
GAAP net income per diluted share		$8.66		$10.66
Acquisition-related charges	a	0.34		0.34
Income tax effect of non-GAAP adjustments	d	(0.13)		(0.13)
Non-GAAP net income per diluted share		$8.87		$10.87
Shares used in net income per diluted share calculation		131.4		131.4

Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin
		Three Months Ending June 30, 2026
		Low		High
GAAP gross margin		59.72 %		61.72 %
Acquisition-related charges	a	1.03 %		1.03 %
Non-GAAP gross margin		60.75 %		62.75 %

 

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.
c.	Impairment of goodwill and purchased intangible assets in the nine months ended March 31, 2025 included non-cash expense recognized as a result of the company's testing for goodwill impairment and long-lived assets impairment, which resulted from the continued deterioration of the long-term forecast for our PCB business. 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 nine months ended March 31, 2026 and in the three months ended Dec. 31, 2025 include the recognition or adjustment of a deferred tax liability for withholding taxes on future remittance of previously taxed income as a result of new tax legislation. Discrete tax items in the three months ended Dec. 31, 2025 also include an adjustment of certain deferred tax benefits for a change in tax rate due to change in tax incentives. 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 nine months ended March 31, 2025 also include the recognition of a net deferred tax asset on foreign currency gains/losses resulting from new tax legislation. Discrete tax items in all periods presented include a tax impact relating to the amortization of tax benefits from internal restructuring or similar tax benefits recorded in other periods.

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SOURCE KLA Corporation

FAQ

What were KLA (KLAC) Q3 FY2026 revenue and EPS results?

KLA reported $3.415 billion revenue and GAAP diluted EPS of $9.12 for Q3 FY2026. According to the company, non-GAAP diluted EPS was $9.40 and GAAP net income totaled $1.201 billion for the quarter ended March 31, 2026.

How much cash flow and free cash flow did KLA (KLAC) generate last twelve months?

KLA reported operating cash flow of $4.40 billion and free cash flow of $4.01 billion over the last twelve months. According to the company, those figures support ongoing capital returns and the new repurchase authorization.

What dividend and share repurchase actions did KLA (KLAC) announce April 29, 2026?

The board approved a quarterly dividend increase to $2.30 per share starting with the May 2026 declaration and authorized an additional $7 billion for repurchases. According to the company, this follows substantial recent capital returns.

What guidance did KLA (KLAC) give for Q4 FY2026 ending June 2026?

KLA guided Q4 revenue of $3.575 billion ± $200 million and GAAP diluted EPS of $9.66 ± $1.00. According to the company, non-GAAP diluted EPS guidance is $9.87 ± $1.00 with specified gross margin ranges.

Did KLA (KLAC) report year-over-year growth in Q3 FY2026?

Yes. Q3 FY2026 revenue of $3.415 billion exceeded Q3 FY2025 revenue of $3.063 billion, a year-over-year increase greater than 10%. According to the company, net income and EPS also rose versus the prior-year quarter.