KLA Corp.

**Strong Financial Performance**: KLA Corporation reported a September quarter revenue of $2.84 billion and non-GAAP diluted EPS of $7.33, exceeding guidance expectations. This reflects strong double-digit growth both sequentially and year-over-year, with free cash flow at $935 million for the quarter and $3.2 billion over the last 12 months, indicating financial stability.

**Market Dynamics and Outlook for 2025**: The company anticipates steady improvement and growth for 2025, driven by strong demand in leading-edge foundry and memory markets, particularly DRAM. KLA expects the wafer fab equipment (WFE) market to increase marginally, projecting it will be in the mid to high $90 billion range. They are confident in maintaining WFE market outperformance despite expected declines in Chinese demand.

**China Exposure Reduction**: KLA’s revenue share from China is expected to decrease from approximately 42% in September to the mid-30s range in the December quarter, largely due to past heavy investments leading to a digestion period. This reduction may impact overall revenue growth but is viewed positively as it creates stability by diversifying revenue sources.