KLA Corporation

Q2 (June quarter) results beat guidance; strong profitability - Revenue $3.66B, above the midpoint of guidance ($3.575B), up 7% sequentially and 15% YoY. - Non-GAAP EPS $1.05 and GAAP EPS $1.04 at the upper end of guidance. - Gross margin 62.4% (upper end of guidance). - Operating margin 43.7%; incremental operating margin 59%. - Cash flow / shareholder returns: Cash flow from ops $906M, free cash flow $817M; returned $876M to shareholders ($571M buybacks + $305M dividends) in the quarter.

Key growth drivers: AI infrastructure + leading-edge complexity + process control intensity - Demand strengthened post–March Investor Day; customers rely on KLA to accelerate yield learning, productivity, and scaling to high-volume manufacturing. - Investment tailwinds cited: AI compute / hyperscale data centers, HBM adoption, increasing advanced packaging requirements, and broader process control intensity driven by faster cycles, higher-value wafers/masks, stricter performance specs, and more variability.

Advanced packaging outlook raised—major opportunity - Company now expects advanced packaging process control systems revenue ~ $1.1B in calendar 2026, up >70% YoY (raised from prior expectation of high 50% growth). - Management also expects broader expansion in adjacent businesses (Specialty Process, PCB, Component Inspection) driven by “high-performance compute packages and integration,” with products expected to grow >25% in calendar 2026.