KLA Corporation Reports Record Q2 FY 2026 Financial Results
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1h ago
0mins
Source: PRnewswire
- Strong Financial Performance: KLA Corporation reported revenues of $3.30 billion and a net income of $1.15 billion for Q2 FY 2026, with diluted earnings per share reaching $8.68, marking a record high that underscores the company's robust performance and market leadership in the semiconductor industry.
- Non-GAAP Net Income Growth: The company's non-GAAP net income stood at $1.17 billion, reflecting a 6.36% increase year-over-year, showcasing KLA's sustained advantages in product portfolio and execution, further solidifying its critical role in the rapidly growing AI infrastructure market.
- Strong Cash Flow Performance: KLA generated free cash flow of $1.26 billion in Q2, a 66.67% increase from the previous year, providing strong support for future investments and shareholder returns, indicating a solid financial health.
- Optimistic Outlook: The company anticipates continued strong growth in Q3 FY 2026, projecting earnings per share between $8.07 and $9.63, highlighting KLA's significance in the AI ecosystem and its proactive response to future market demands.
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Analyst Views on KLAC
Wall Street analysts forecast KLAC stock price to fall over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAC is 1393 USD with a low forecast of 1214 USD and a high forecast of 1750 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
14 Buy
6 Hold
0 Sell
Moderate Buy
Current: 1627.200
Low
1214
Averages
1393
High
1750
Current: 1627.200
Low
1214
Averages
1393
High
1750
About KLAC
KLA Corporation is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of inspection and metrology products, and related services, software and other offerings, supports research and development (R&D) and manufacturing of integrated circuits (ICs), wafers and reticles. Its segments include Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. Semiconductor Process Control segment provides comprehensive portfolio of inspection, metrology and software products, as well as related services, helping IC, wafer, reticle/mask and chemical/materials manufacturers achieve target yields throughout the entire fabrication process, from R&D to final volume production. The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etch process tools, which are used by a range of specialty semiconductor customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
KLA Corporation Set to Announce Q2 Earnings on January 29th
- Earnings Announcement: KLA Corporation is set to release its Q2 earnings on January 29th after market close, with consensus EPS estimate at $8.80, reflecting a 7.3% year-over-year increase, and revenue estimate at $3.25 billion, up 5.5% year-over-year, indicating sustained profitability and market confidence.
- Record of Beating Estimates: Over the past two years, KLA has consistently beaten EPS and revenue estimates 100% of the time, showcasing strong performance and effective management strategies that bolster investor confidence in future results.
- Estimate Revision Trends: In the last three months, KLA's EPS estimates have seen 18 upward revisions and 4 downward revisions, while revenue estimates experienced 19 upward revisions and 1 downward revision, reflecting analysts' optimistic outlook on the company's growth trajectory and reinforcing its market position.
- Positive Industry Outlook: With the AI-driven semiconductor capital expenditure boom, KLA is viewed as a primary beneficiary, particularly in light of Intel's $9.1 billion capital expenditure commitment for 2026, underscoring the company's strategic significance in the rapidly evolving semiconductor market.
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