KLAC earnings analysis
What we found in KLAC's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
KLA Corporation reported a strong third quarter for fiscal 2026 with revenues of $3.415 billion and diluted EPS of $9.40, both exceeding consensus estimates. The company experienced notable growth in its wafer inspection and services segments, indicating continual momentum amidst a thriving semiconductor market driven by AI and advanced technology demands.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth Exceeds Expectations
- Total revenues reached $3.415 billion, up 11% year-over-year from $3.063 billion.
- Improved Gross Margin
- Gross margin improved to 61.9%, slightly up from the previous quarter of 61.5%.
- Strong Earnings Surprise
- Diluted EPS stood at $9.40, representing a surprise of 2.73% over the estimated EPS of $9.15.
- Services Segment Revenue Growth
- Services revenue increased by 16% in Q3 FY26 compared to Q3 FY25, contributing $774.8 million.
- Wafer Inspection Dominance
- Wafer inspection revenues grew to $1.740 billion, accounting for 51% of total revenue.
- Positive Q3 Cash Flow
- Free cash flow was reported at $990 million, continuing the trend of strong cash generation.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Trade Compliance Risks
- Ongoing changes in trade regulations may impact revenues from global markets, particularly in China.
- Dependence on Semiconductor Cyclicality
- The company's revenue is highly susceptible to fluctuations in the semiconductor industry demand.
- Litigation Risks from IP Disputes
- Potential costly legal challenges related to intellectual property could disrupt operations.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $9.4
- Gross margin
- 61.9%
- Segment
- Semiconductor Process Control
- Segment
- Specialty Semiconductor Process
- Segment
- PCB and Component Inspection
What they said about what is next.
Outlook deferred to earnings press release / call.
The filing reads better than the one before it.
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
Read the next one first.
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