KLA Corporation

Strong June-quarter performance (beat guidance): - Revenue $3.66B, above guidance midpoint of $3.575B; +7% QoQ and +15% YoY. - Non-GAAP diluted EPS $1.05 and GAAP diluted EPS $1.04, at upper end of guidance ranges. - Gross margin 62.4% (also at upper end). Operating margin 43.7%; incremental operating margin 59%. - Cash generation: CFO $906M, Free cash flow $817M.

Demand outlook improving—acceleration in 2H’26 and strong 2027 setup: - Management cites accelerating AI infrastructure investment, continued strength in leading-edge foundry/logic, rising HBM adoption, and increasing process control intensity from faster cycles + more complex devices + advanced packaging. - Expect growth to accelerate in 2H calendar 2026 and “significant growth” in calendar 2027, supported by improving visibility and wafer equipment demand.

Key guidance: September-quarter revenue & profitability; 2H’26 growth shape: - Sep quarter revenue: $4.0B ± $200M (roughly flat sequentially but improving versus last quarter gross margin guidance). - Gross margin (Sep): 62.5% ± 1.0 pp, helped by operating leverage. - Operating expenses (Sep): ~$690M, with + $15M to $20M sequential in coming quarters. - EPS (Sep): Non-GAAP $1.16 ± $0.10; GAAP $1.14 ± $0.10. - Management indicated 2H’26 KLA growth ~20% over 1H’26 (i.e., acceleration comes as supply constraints ease).