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
