Q1 Fiscal 2026 Earnings Quarter Ended September 30, 2025 • Reported October 29, 2025 KLA Non-Confidential | Unrestricted 1 Forward Looking Statements Statements in this letter other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors, WFE, and advanced packaging; (ii) our market position for the future and future growth in demand for our products; (iii) our forecast of financial measures for the following quarter and 2025; (iv) our future revenues by custom ...

Exhibit 99.1 FOR IMMEDIATE RELEASE Investor Relations: Media Relations: Kevin Kessel, CFA Mike Dulin Vice President, Investor Relations Corporate Communications (408) 875-6627 michael.dulin@kla.com kevin.kessel@kla.com KLA Corporation Reports Fiscal 2026 First Quarter Results MILPITAS, Calif., October 29, 2025 - KLA Corporation (NASDAQ: KLAC) today announced financial and operating results for its first quarter of fiscal year 2026, which ended on September 30, 2025, and reported GAAP net income of $1.12 bil ...

Core Insights - KLA Corporation reported strong financial results for Q1 FY 2026, with GAAP net income of $1.12 billion and revenues of $3.21 billion, reflecting double-digit year-over-year growth [1][2][4]. Financial Performance - Total revenues for Q1 FY 2026 were $3,210 million, exceeding the guidance midpoint of $3,150 million +/- $150 million [4]. - GAAP net income was $1,121 million, with a diluted EPS of $8.47, compared to $946 million and $7.01 in Q1 FY 2025, marking a significant increase [2][4][12]. - Non-GAAP net income for Q1 FY 2026 was $1,167 million, with a non-GAAP diluted EPS of $8.81, also showing substantial growth from the previous year [2][12]. Segment Performance - The Semiconductor Process Control segment generated revenues of $2,899 million, up from $2,575 million in the same quarter last year [11]. - The Specialty Semiconductor Process segment reported revenues of $120 million, while PCB and Component Inspection segment revenues were $189 million, both showing year-over-year growth [11]. Cash Flow and Capital Returns - Cash flow from operating activities for the quarter was $1.16 billion, with free cash flow of $1.07 billion [4][10]. - Capital returns for the quarter included $799 million in share repurchases and $254 million in dividends paid to stockholders [4][10]. Guidance for Q2 FY 2026 - KLA expects total revenues for Q2 FY 2026 to be in the range of $3.225 billion +/- $150 million, with GAAP gross margin projected at 60.8% +/- 1.0% [5][14]. - The company anticipates GAAP diluted EPS to be in the range of $8.46 +/- $0.78 for the upcoming quarter [5][14].

Group 1: Semiconductor Equipment Industry - There has been a positive trend in the semiconductor equipment sector, with companies like Applied Materials, Lamb Research, and KLA Corp reaching new all-time highs due to strong earnings and favorable market conditions [2] - The rhetoric surrounding the semiconductor industry has improved, which is expected to have a positive impact on the market [2] - Despite a challenging year, the semiconductor equipment sector is anticipated to continue its positive momentum [3] Group 2: Healthcare and Biotech Sector - The healthcare sector, particularly pharmaceuticals and biotech, is viewed favorably as growth opportunities are expected to arise, especially leading into the midterm election year of 2026 [6] - There is a focus on the performance of Merck, particularly regarding its cancer drug Kitruda, with concerns about risks associated with its future performance [8] - The financial services engagement environment is expected to support strong performance from S&P Global, indicating a positive outlook for the healthcare sector [5]

Core Viewpoint - KLA Corporation is a significant player in the semiconductor and electronics industries, with a strong focus on innovation and strategic initiatives that enhance its market position and analyst sentiment [1][3]. Company Summary - KLA's average analyst price target has increased from $883.31 a year ago to $1,128.33 last month, indicating growing optimism about the company's prospects [2][6]. - The company is expected to report double-digit growth in its fiscal Q1 earnings, driven by strong demand in AI applications and advancements in packaging technology [4]. - KLA's stock has surged nearly 80%, attributed to revenue increases and expanding profit margins [4]. Industry Summary - The semiconductor industry is experiencing robust growth due to high demand for electronic devices and technological advancements, which benefits KLA [3][6]. - KLA's performance is supported by trends such as TSMC's capital expenditure, the memory upcycle, EUV adoption, and advancements in packaging technology [5].

Core Insights - KLA Corporation (KLAC) is expected to report first-quarter fiscal 2026 results on October 29, with projected revenues of $3.15 billion, indicating an 11% year-over-year increase [1][8] - Non-GAAP earnings per share (EPS) is anticipated to be $8.53, reflecting a 16.6% growth from the prior year [2][8] - The company has consistently surpassed earnings estimates in the past four quarters, with an average surprise of 6.16% [2] Revenue and Earnings Expectations - KLAC's revenue estimate for the upcoming quarter is $3.15 billion, close to the Zacks Consensus Estimate of $3.16 billion [1][8] - The expected non-GAAP EPS of $8.53 is slightly below the consensus mark of $8.55, which has remained unchanged over the past 30 days [2][8] Key Growth Drivers - The demand for advanced semiconductors and process control solutions is being driven by advancements in artificial intelligence (AI) [4] - The advanced packaging business is projected to grow significantly, with revenues expected to rise from over $500 million in calendar 2024 to $925 million in calendar 2025 [5] - Strong spending in the development of leading-edge logic nodes and high-bandwidth memory in DRAM is anticipated to contribute to KLAC's revenue growth [5] Margin Considerations - Gross margin is expected to be negatively impacted by weak systems revenues in the first quarter of fiscal 2026 [6] - Tariffs are identified as a headwind, although the negative impact is expected to be lower than previous guidance [6] Earnings Prediction Model - According to the Zacks model, KLAC has an Earnings ESP of 0.00% and a Zacks Rank of 2 (Buy), indicating a lower likelihood of an earnings beat [7]

Core Insights - KLA's stock surged by nearly 80% due to substantial revenue growth and increasing margins, driven by strong demand in AI and semiconductor capabilities [1] - The stock's increase was attributed to a 24% rise in revenue, a 19% increase in net margin, and a 20% growth in valuation multiple [1] Financial Performance - KLA consistently exceeded revenue and EPS forecasts for Q1-Q4 FY25, with Q4 FY25 revenues reaching $3.175 billion and non-GAAP EPS at $9.38 [6] - Advanced packaging revenue is projected to grow significantly, expected to surpass $925 million in 2025, up from $500 million in 2024 [6] Market Position - KLA holds a dominant position in the process control market with a 56% market share, which is crucial for advanced chip manufacturing [6] - The global semiconductor equipment market is anticipated to expand, with sales forecasted to reach $125.5 billion in 2025, reflecting a 7.4% increase [6] Industry Trends - There is an unquenchable demand for AI and High-Performance Computing, leading to significant investments in the semiconductor sector [6]

Company Overview - KLA is one of the largest manufacturers of semiconductor wafer fabrication equipment (WFE) globally, specializing in semiconductor process control, which involves inspecting wafers for defects and verifying measurements [10][11] - The company holds a majority share in its market segment and has exposure to etch and deposition segments, with major customers including TSMC and Samsung [11] Recent Trading Activity - Recent options trading indicates a bearish sentiment among significant investors, with 50% of trades being bearish and only 25% bullish [1] - A total of 24 trades were detected, comprising 11 puts totaling $597,210 and 13 calls totaling $1,746,345 [1] Price Expectations - Significant investors are targeting a price range for KLA between $720.0 and $1280.0 over the past three months [2] Options Volume and Open Interest - The volume and open interest data for KLA's options over the last 30 days can provide insights into liquidity and investor interest within the strike price range of $720.0 to $1280.0 [3][4] Analyst Ratings and Price Targets - Analysts have set an average price target of $1126.25 for KLA, with varying ratings from different firms: - Stifel maintains a Buy rating with a target of $1050 - Goldman Sachs holds a Neutral rating with a target of $1120 - Barclays upgraded to Overweight with a target of $1200 - UBS maintains a Neutral rating with a target of $1135 [12][13] Current Stock Performance - KLA's stock price is currently at $1185.43, reflecting a 2.28% increase, with a trading volume of 346,342 [15]

Core Insights - KLA Corporation (NASDAQ: KLAC) has been rated as Hold since July 24, 2025, due to excellent execution and increasing structural weight in process control, although the stock price has outpaced its fundamentals [1] Company Analysis - KLA Corporation's stock has increased significantly, indicating a potential disconnect between its current valuation and underlying fundamentals [1] - The company operates in the semiconductor sector, which is characterized by high barriers to entry and oligopolistic market conditions, making it an attractive investment area [1] Analyst Background - The analyst has a background in Mechanical Engineering and has transitioned from the oil and gas sector to focus on technology investments, particularly in semiconductors, robotics, and energy [1] - The investment approach emphasizes growth at a reasonable price with a mid- to long-term investment horizon, targeting companies with strong market positions [1]

Core Viewpoint - KLA Corporation (NASDAQ: KLAC) is currently rated as a Hold due to excellent execution and increasing structural weight in process control, but the stock price has outpaced its fundamentals [1] Company Analysis - KLA Corporation's stock has increased significantly since the last analysis, indicating strong market performance despite concerns about valuation [1] - The company operates in the semiconductor sector, which is characterized by high barriers to entry and oligopolistic market conditions, making it an attractive investment area [1] Analyst Background - The analyst has a background in Mechanical Engineering and has transitioned from the oil and gas sector to focus on technology investments, particularly in semiconductors, robotics, and energy [1] - The analyst emphasizes a growth at a reasonable price investment strategy with a mid- to long-term horizon [1]