KLA Q3 Revenue Hits $3.415B, Up 11.8% YoY; Stock Falls Post-Earnings
KLA reported FY2026 Q3 revenue of $3.415 billion, a 11.8% increase year-over-year, with Non-GAAP EPS of $9.40 exceeding guidance. Despite strong earnings, the stock declined in after-hours trading following the announcement.
- KLA posted Q3 FY2026 revenue of $3.415 billion, up 11.8% YoY, with Non-GAAP EPS of $9.40 beating guidance
- Stock fell despite strong earnings as revenue slightly missed consensus and Q4 guidance appeared lighter than expected
KLA disclosed FY2026 Q3 (January–March 2026) revenue of $3.415 billion in its SEC 8-K filing.
Q3 Results at a Glance
KLA exceeded both revenue and EPS guidance in the quarter. Revenue grew 11.8% compared to the year-ago period ($3.063 billion) and increased 3.6% sequentially from the prior quarter ($3.297 billion).
- Revenue: $3.415 billion, +11.8% YoY
- GAAP EPS: $9.12, exceeded midpoint guidance
- Non-GAAP EPS: $9.40, exceeded midpoint guidance
- GAAP Net Income: $1.201 billion
- Operating Cash Flow: $707.5 million
- Free Cash Flow: $622.3 million
- Shareholder Returns (dividends + buybacks): $874.8 million
FY2026 Q4 Guidance
KLA guided Q4 (April–June 2026) revenue to $3.575 billion ±$200 million, with Non-GAAP EPS guidance of $9.87 ±$1.00. CEO Rick Wallace stated, "Business momentum is strong, and we have high confidence in our outlook for the full year 2026." The board approved a quarterly dividend increase to $2.30 per share—marking 17 consecutive years of annual dividend growth—and authorized an additional $7.0 billion in share repurchases.
Market Reaction
KLA's stock declined in after-hours trading following the earnings release. SeekingAlpha and ChartMill reported that while EPS beat expectations, revenue fell slightly short of consensus estimates. Analysts also noted that Q4 guidance ($3.375 billion–$3.775 billion) appears weaker than anticipated. However, the 17th consecutive year of dividend increases and the $7.0 billion share repurchase authorization were cited as positive factors.
This article was auto-generated based on the SEC 8-K filing and press reports, and is intended to deliver key data quickly following the announcement. We recommend reviewing the company's official SEC filing before making any trading decisions.
KLACFrequently Asked Questions
What does KLA do?
KLA is a U.S. semiconductor equipment manufacturer specializing in inspection and metrology systems used to detect defects during chip production. Major customers include Samsung Electronics and TSMC.
Why are there two EPS figures—GAAP and Non-GAAP?
GAAP (Generally Accepted Accounting Principles) includes all expenses such as stock-based compensation and M&A costs. Non-GAAP excludes one-time items to highlight operational performance. KLA's Q3 Non-GAAP EPS was $9.40 versus GAAP EPS of $9.12.
What do the dividend increase and share buyback announcement mean?
Dividends are portions of profits paid to shareholders. KLA raised its quarterly dividend to $2.30 per share, marking 17 consecutive years of annual dividend increases. Share buybacks occur when a company purchases its own stock, effectively increasing per-share value. The board approved an additional $7.0 billion in repurchases.
Results were strong—why did the stock fall?
Although KLA beat its own guidance for both revenue and EPS, the top line came in slightly below consensus analyst estimates. Additionally, Q4 guidance ($3.375B–$3.775B) was viewed as softer than some investors anticipated, triggering the post-earnings decline in after-hours trading.
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