KLA Corporation Reports Fiscal 2025 Second Quarter Results

Financial Performance - KLA Corporation reported GAAP net income of $824.5 million for Q2 FY 2025, with a diluted EPS of$6.16 on revenues of $3.08 billion, marking a significant increase from$2.49 billion in Q2 FY 2024 [1][3][8] - Non-GAAP net income for the same period was $1.10 billion, with a non-GAAP diluted EPS of$8.20, reflecting strong profitability despite challenges from new U.S. government export controls [4][8] Revenue Growth - Total revenues for Q2 FY 2025 reached $3.08 billion, exceeding the guidance range of$2.95 billion +/- $150 million, indicating robust demand in the semiconductor sector [2][8] - The revenue growth was driven by investments in AI and high-performance computing, aligning with increasing technology complexity and larger semiconductor devices [2][8] Segment Performance - The Semiconductor Process Control segment generated$2.76 billion in revenue, up from $2.19 billion in the same quarter last year, showcasing strong performance in this key area [14] - Specialty Semiconductor Process and PCB and Component Inspection segments also reported revenue increases, contributing to the overall growth [14] Cash Flow and Capital Returns - Cash flow from operating activities for the quarter was$849.5 million, with free cash flow of $757.2 million, demonstrating strong cash generation capabilities [8][15] - Capital returns for the quarter totaled$876.9 million, including $226.8 million in dividends and$650.1 million in stock repurchases, reflecting the company's commitment to returning value to shareholders [8][15] Guidance for Future Performance - For Q3 FY 2025, KLA expects total revenues to be in the range of $3.0 billion +/-$150 million, with GAAP diluted EPS projected between $7.77 and$8.37 [9][16] - The company anticipates a GAAP gross margin of approximately 60.6% +/- 1.0% and a non-GAAP gross margin of around 62.0% +/- 1.0% for the upcoming quarter [9][16]