KLA Corporation Reports Fiscal 2026 Second Quarter Results

Core Insights - KLA Corporation reported a record financial performance for the second quarter of fiscal year 2026, with GAAP net income of $1.15 billion and revenues of $3.30 billion, reflecting strong execution and a differentiated product portfolio [1][2]. Financial Performance - Total revenues for Q2 FY 2026 were $3,297 million, an increase from $3,210 million in Q1 FY 2026 and $3,077 million in Q2 FY 2025 [2]. - GAAP net income for Q2 FY 2026 was $1,146 million, compared to $1,121 million in Q1 FY 2026 and $825 million in Q2 FY 2025 [2]. - GAAP net income per diluted share was $8.68, up from $8.47 in Q1 FY 2026 and $6.16 in Q2 FY 2025 [2]. - Non-GAAP net income for Q2 FY 2026 was $1,168 million, with a non-GAAP net income per diluted share of $8.85, both showing increases from the previous quarters [2][4]. Cash Flow and Capital Returns - Cash flow from operating activities for the quarter was $1.37 billion, with free cash flow of $1.26 billion [4]. - Capital returns for the quarter amounted to $797.4 million, with total capital returns for the last twelve months reaching $3.01 billion [4]. Segment Performance - The Semiconductor Process Control segment generated revenues of $3,004.6 million in Q2 FY 2026, up from $2,755.7 million in Q2 FY 2025 [12]. - Specialty Semiconductor Process revenues were $140.6 million, while PCB and Component Inspection revenues were $152.2 million for the same period [12]. Guidance for Future Performance - For Q3 FY 2026, total revenues are expected to be in the range of $3.35 billion, with GAAP gross margin projected at approximately 60.62% [5]. - GAAP diluted EPS is anticipated to be in the range of $8.85, while non-GAAP diluted EPS is expected to be around $9.08 [5]. Strategic Positioning - KLA is positioned as a key enabler of the AI ecosystem, benefiting from the AI infrastructure buildout across various growth vectors, including foundry/logic and memory [2].