KLA Corporation (KLAC) FY2026

Business

From the fiscal 2026 Form 10-K (period ended June 30, 2026), accession 0000319201-26-000027.

KLA sells process control and yield management equipment, software and services to companies that make semiconductors and electronics. Its inspection and metrology systems find, measure and analyse defects at nanometre scale on wafers, reticles (photomasks), integrated circuits and packages. This helps chipmakers bring new process nodes into volume production faster and get more good chips per wafer. Most of KLA's revenue comes from selling these systems to the largest foundry/logic and memory chipmakers. Services make up the rest of the base: maintenance and support on the installed tools, mostly under recurring "subscription-like" contracts. Services were about 23% of fiscal 2026 revenue ($3.13 billion of $13.58 billion).

Segments. KLA reports three segments. The fiscal 2026 revenue figures below exclude corporate allocations and currency effects:

• Semiconductor Process Control: $12.24 billion, about 90% of the total. Inspection, review, metrology, chemistry process control, in-situ sensor wafers and software for chip, wafer, reticle and advanced-packaging manufacturing, plus the related services. Product families include the 39xx, 29xx, Puma and Voyager inspection series, eDR review tools, Surfscan, Archer, ATL, SpectraShape and SpectraFilm metrology and inspection systems, Teron and TeraScan reticle inspection, and the Klarity and 5D Analyzer software. The segment also includes KLA Pro, a line of certified remanufactured tools for larger-design-node chips and wafers of 200mm or smaller.
• Specialty Semiconductor Process: $584.1 million. Vacuum deposition, etch and plasma-dicing tools (the SPTS Omega, Sigma, Delta and Mosaic lines, among others). Customers include makers of MEMS, RF communication chips and power semiconductors for automotive and industrial uses.
• PCB and Component Inspection: $750.4 million. Direct imaging, inspection, optical shaping and inkjet/additive printing for printed circuit boards and IC substrates (the Orbotech product lines), plus inspection and metrology for semiconductor packaging (ICOS, Zeta). In March 2024 KLA announced the end of manufacturing for most flat-panel Display products. It continues to service the Display installed base.

By product category, Wafer Inspection was 49% of fiscal 2026 revenue ($6.63 billion), Patterning 20% ($2.71 billion) and Services 23%. Specialty Semiconductor Process, PCB and Component Inspection, and Other made up the remainder.

Customers and geography. The customer base is highly concentrated. Taiwan Semiconductor Manufacturing Company Limited accounted for more than 10% of total revenue in each of fiscal 2024, 2025 and 2026. About 87% of fiscal 2026 revenue came from outside the U.S., by ship-to location:

China's share was 42.8% in fiscal 2024 and 33.3% in fiscal 2025. Sales go mainly through a direct sales force in Asia, the U.S. and Europe.

Industry position and demand drivers. The company describes its business as cyclical, tied to customers' capital spending, but not seasonal. A leading-edge fab now costs well above $10 billion. Management names these as the drivers for fiscal 2027 and beyond:

• AI- and high-performance-computing-driven investment at the leading edge
• EUV adoption in high-volume manufacturing for logic and DRAM, including high-bandwidth memory
• Rising process-control intensity at the 2-nanometre node
• Rapid growth in advanced packaging

Named competitors include Applied Materials, ASML, Hitachi High-Tech, Lasertec and Onto Innovation.

Backlog. Backlog rose from $7.86 billion at June 30, 2025 to $12.57 billion at June 30, 2026. The company attributes the increase to strong demand from the AI infrastructure buildout. It cautions that backlog does not reliably indicate when revenue will be recognised.

Operations. KLA designs, assembles and tests its systems in-house and outsources components and major subassemblies. Some parts are available only from single or limited sources. Manufacturing is principally in the U.S., Singapore, Israel, China and Europe. R&D centres are in the U.S., U.K., India, China, Singapore and Israel. Headquarters is in Milpitas, California.

At June 30, 2026 KLA had:

• about 17,000 regular full-time employees: 50% in Asia, 31% in the U.S. and 19% in Europe and the Middle East; 27% in R&D and 27% in customer service
• over 9,100 active patents, with terms running through 2045

Singapore tax holidays, renewed as of July 1, 2025 and running through December 2032, cut tax expense by $120.9 million in fiscal 2026.

Background. KLA was formed as KLA-Tencor in April 1997 through the merger of KLA Instruments and Tencor Instruments. The PCB and Display businesses have weakened. KLA recorded goodwill impairments on them of $192.6 million in the second quarter of fiscal 2024 and $230.4 million in the second quarter of fiscal 2025, after the long-term forecasts for those businesses deteriorated. A further $70.5 million Display charge in the third quarter of fiscal 2024 followed the March 2024 decision to end manufacturing of most Display products. The annual goodwill test as of December 31, 2025 found no impairment.

Risk factors

From the fiscal 2026 Form 10-K, accession 0000319201-26-000027, Item 1A. These are condensed to the risks most specific to KLA.

China export controls. China was 30% of fiscal 2026 revenue (33% in fiscal 2025, 43% in fiscal 2024). U.S. Commerce Department rules restrict sales and service to Chinese advanced-node logic and advanced-DRAM fabs and to Entity List parties:

• BIS rules issued in October 2022, October 2023, December 2024 and January 2025
• the September 2025 "Affiliates Rule", which reaches entities 50%-or-more owned by listed parties; it was suspended in November 2025 for one year, until November 2026

Failure to get licences has harmed backlog and has required KLA to return substantial customer deposits. Some China-bound shipments have been held by U.S. Customs and Border Protection. The restrictions may also help Chinese competitors take share.

Tariffs. U.S. tariffs have raised KLA's cost of revenues because the company imports foreign components into its U.S. factories. Retaliatory tariffs can cause customers to push out or cancel orders. A Section 232 investigation covering semiconductors and semiconductor equipment, opened in April 2025, is still unresolved.

In February 2026 the U.S. Supreme Court held that tariffs imposed under the International Emergency Economic Powers Act were not authorised. KLA is pursuing refunds of duties it paid through the U.S. Customs and Border Protection process and has begun receiving them. It does not expect the effect to be material.

Customer concentration and cyclicality. A small number of chipmakers account for a large share of orders, and foundry/logic has dominated recent orders. Consolidated customers have more negotiating leverage and increasingly qualify second-source suppliers. Spending tied to AI has lifted customers' capital budgets, but the company says it cannot be sure these levels will last. The higher backlog also raises the risk of order changes, reschedules or cancellations that customers may not report promptly.

Technology shifts, including AI. Specific risks named:

• the cost per transistor could stop falling
• memory customers adopt less process control than foundry/logic customers
• customers may reuse installed tools
• larger rivals may integrate inspection into their process tools
• AI-driven design and process development could shorten development cycles, lower barriers to entry, encourage customers to build tools in-house, or make product lines obsolete

KLA also faces risks from its own use of AI, including flawed outputs, leakage of intellectual property and evolving regulation.

Supply chain. Supply risks include:

• single-source parts
• Chinese export controls on rare earth elements (imposed April 2025 and widened October–November 2025). China controls an estimated 70% of rare-earth mining, 90% of processing and 93% of magnet production.
• a shortage of DRAM chips used in KLA's products after several large suppliers stopped making them. Procurement of these chips raised purchase commitments in fiscal 2026. KLA expects the added cost to keep hurting gross margin in fiscal 2027.

Geopolitical and operational. KLA has significant operations in Israel, exposed to the regional conflicts involving Iran and Iran-backed groups and to Red Sea shipping disruption. Some Israeli employees can be called up for military reserve duty. The company is largely uninsured for war and terrorism. It does not carry earthquake insurance, although a significant portion of its manufacturing and much of its R&D are in California. Other operational risks:

• cybersecurity, including threats generated with AI
• an ERP system upgrade due to finish in the first quarter of fiscal 2027
• reliance on outsourced service providers
• acquisition integration

Capital structure. KLA has $5.95 billion of senior unsecured notes. A change of control followed by a ratings downgrade would trigger a 101% repurchase offer. Covenants apply under the $1.50 billion revolving credit facility, and $2.00 billion of the fixed-rate notes have been swapped to floating rates. Part of the remaining $9.74 billion buyback authorisation may be funded with new debt. Dividends are not guaranteed.

Tax. Most non-U.S. profit is earned in Singapore and Israel. Effective-tax-rate exposure includes:

• the One Big Beautiful Bill Act changes to the GILTI/FDII regimes, renamed NCTI and FDDEI
• possible future exposure to the 15% corporate alternative minimum tax
• Pillar Two global minimum taxes
• the expiry of tax holidays

Other risks. These include:

• indemnification obligations to customers and other parties
• volume-purchase agreements that defer revenue
• audits of government funding
• further impairments, restructuring charges or inventory write-offs
• the soundness of factoring and banking counterparties
• compliance conditions in past settlements over historical stock-option practices
• an exclusive-forum bylaw naming the Delaware Court of Chancery

Management's discussion, fiscal 2026

From the fiscal 2026 Form 10-K, accession 0000319201-26-000027, Item 7. Per-share amounts are post-split.

Results.

Management attributes the revenue growth to leading-edge investment by foundry/logic, memory and advanced-packaging customers, supported by AI and high-performance-computing demand. Service growth came from a larger installed base.

The gross margin bridge from 60.9% to 61.3%:

• higher volume: +0.5 points
• mix: −0.2 points
• manufacturing efficiency: +0.2 points
• other service and manufacturing costs: −0.1 points

The last item netted higher installation, warranty and tariff costs against lower inventory charges.

The fiscal 2025 comparison includes a $239.1 million goodwill and intangible-asset impairment in the PCB business, of which the goodwill portion was $230.4 million and not tax-deductible. There was no impairment in fiscal 2026.

Segments.

• Semiconductor Process Control rose 12%, driven by foundry/logic and memory, advanced packaging and services.
• Specialty Semiconductor Process fell 1%, on lower customer investment and weaker product sales in China.
• PCB and Component Inspection rose 21%, on advanced-packaging demand and a stronger PCB business, partly offset by the absence of revenue from the exited Display business.

Regions. China revenue was flat ($4.05 billion versus $4.04 billion). Domestic legacy-node investment was largely offset by export-control restrictions. Taiwan rose 13.7%, Korea 26.2% (memory, including high-bandwidth memory and advanced DRAM) and North America 29.0%.

Expenses and tax.

• R&D rose 13% to $1.53 billion, about 11% of revenue. Most of the increase was $124.8 million of employee costs and $36.0 million of engineering materials.
• SG&A rose 10% to $1.13 billion. The drivers were employee costs ($35.9 million), facilities ($23.9 million) and a $22.7 million increase in the provision for credit losses.
• Interest expense fell to $284.4 million because KLA repaid $750.0 million of notes in fiscal 2025.
• Other income rose to $229.6 million, including a $28.0 million gain on an equity security, a $19.2 million favourable currency swing and an $11.6 million tax-reserve release.
• The effective tax rate rose to 13.8% from 12.5%. A smaller share of earnings came from low-tax jurisdictions and less U.S. income qualified for the FDDEI deduction. This was partly offset by lower NCTI and by the fiscal 2025 base, which included the non-deductible impairment.

Cash flow and capital returns.

• Operating cash flow was $4.14 billion versus $4.08 billion. Higher customer collections (about $1.2 billion more) were largely offset by about $1.1 billion more in supplier payments.
• Capital expenditures were $375.9 million.
• The July 28, 2026 earnings release (accession 0000319201-26-000024) puts free cash flow, a non-GAAP measure, at $3.77 billion.
• Investing outflows rose to $1.19 billion, mainly from net purchases of marketable securities.
• KLA bought back $2.29 billion of stock and paid $1.06 billion in dividends.
• On March 11, 2026 the board added a $7.00 billion repurchase authorisation. $9.74 billion remained at June 30, 2026.
• The quarterly dividend went from $0.17 to $0.19 per share in the fourth quarter of fiscal 2025. The increase from $0.19 to $0.23 per share (post-split; $2.30 pre-split) was announced in the third quarter of fiscal 2026 (March 2026) and first declared at that level in May 2026. That was KLA's 17th consecutive annual increase.

Balance sheet and liquidity at June 30, 2026.

• Cash, cash equivalents and marketable securities: $4.90 billion, of which $735.1 million was held abroad
• Senior notes: $5.95 billion principal, maturing fiscal 2029–2063
• Revolving credit facility: $1.50 billion, undrawn, entered July 3, 2025 and maturing July 3, 2030
• Net leverage ratio: 0.53x, against a 3.25x covenant maximum
• Credit ratings: A (Fitch), A2 (Moody's) and A- (S&P)
• Working capital: $8.08 billion
• Purchase commitments: $5.97 billion, most due within 12 months; the company says it increased commitments partly to secure key components
• Receivables sold under factoring agreements during the year: $515.5 million (versus $230.6 million in fiscal 2025)

Outlook in the annual report. Management expects revenue to keep growing in fiscal 2027 as customer engagement and demand signals strengthen. It flags variable customer timing, regulation and tariffs, and higher component costs as headwinds.

Current quarter

This section covers the third and fourth quarters of fiscal 2026.

Third quarter (three months ended March 31, 2026)

From the Form 10-Q for the quarter ended March 31, 2026, accession 0000319201-26-000016. Per-share amounts in this filing are pre-split.

The July 28, 2026 earnings release restates the third-quarter EPS as $0.91 on the post-split basis.

Revenue drivers. Revenue growth came mainly from memory customers, particularly DRAM led by high-bandwidth memory, plus steady foundry/logic growth.

• Semiconductor Process Control rose 13% to $3.08 billion.
• Specialty Semiconductor Process rose 5%, which the company attributes to shipment timing.
• PCB and Component Inspection fell 1% because the year-ago quarter still included Display revenue.
• Korea revenue rose 80%, North America 40% and China 5%.
• Taiwan fell 12% on shipment timing and Japan fell 47%.

Margin and expenses. The 0.5-point drop in gross margin reflected:

• mix: −0.5 points
• manufacturing labor, overhead and efficiencies: −0.1 points
• other service and manufacturing costs (higher installation, warranty and tariff costs, partly offset by lower inventory-related charges): −0.4 points
• volume: +0.5 points

R&D rose 15% and SG&A rose 17%. The SG&A increase included a $23.1 million rise in the provision for credit losses.

Management said it expected revenue growth to continue through calendar 2026. It also said escalating costs for DRAM chips used in KLA's image computers would keep weighing on gross margin, an effect it expected to be transitory.

Nine-month cash flow and capital actions. For the nine months, operating cash flow was $3.24 billion versus $2.92 billion. The 10-Q presents cash flows only on a year-to-date basis.

In the quarter, KLA repurchased $626.0 million of stock and paid $248.8 million in dividends ($1.90 per share, pre-split). On March 11, 2026 the board:

• raised the quarterly dividend level to $2.30 pre-split ($0.23 post-split), a 21% increase
• authorised a further $7 billion of repurchases on top of the April 2025 program, which had $3.94 billion left at December 31, 2025

These actions are in the 10-Q and in the Form 8-K, accession 0001193125-26-102999. KLA held an investor day on March 12, 2026.

Fourth quarter (three months ended June 30, 2026)

Fourth-quarter figures come from the full year in the 10-K (accession 0000319201-26-000027) minus the nine months in the 10-Q (accession 0000319201-26-000016). They match the quarterly figures in the July 28, 2026 earnings release (Form 8-K, accession 0000319201-26-000024). Per-share amounts are post-split, from the release.

By segment:

• Semiconductor Process Control: $3.26 billion
• PCB and Component Inspection: $241.1 million, up from $154.1 million
• Specialty Semiconductor Process: $159.7 million

Fourth-quarter operating cash flow was $906.4 million, versus $1.16 billion a year earlier. This also equals the full-year figure minus the nine-month figure. The release's quarterly cash flow statement shows that a $586.5 million increase in accounts receivable held down operating cash flow.

The release says revenue was above the midpoint of the guidance range and GAAP EPS was at the upper end of its range. The revenue guidance, given on April 29, 2026, was $3.575 billion ± $200 million (Form 8-K, accession 0000319201-26-000014).

Guidance for the first quarter of fiscal 2027 (ending September 30, 2026)

From the July 28, 2026 earnings release, accession 0000319201-26-000024.

• Revenue: $4.0 billion ± $200 million
• GAAP gross margin: 61.6% ± 1.0 point (non-GAAP 62.5% ± 1.0 point)
• GAAP diluted EPS: $1.14 ± $0.10 (non-GAAP $1.16 ± $0.10), post-split

CEO Rick Wallace said the company sees "momentum across our business accelerating in the second half of calendar 2026 and continuing through 2027." He cited process-control demand from leading-edge foundry/logic and memory and new opportunities in advanced packaging.

Subsequent events

From the fiscal 2026 Form 10-K, accession 0000319201-26-000027, Note 19 and Item 5, and the August 6, 2026 Form 8-K, accession 0001193125-26-338242.

• Dividend. On August 6, 2026 the board declared a quarterly cash dividend of $0.23 per share on the post-split basis, payable September 1, 2026 to holders of record on August 17, 2026. This is the only subsequent event in the annual report's subsequent-events note.
• No deals or financings disclosed. The annual report discloses no acquisition, divestiture, debt issuance or borrowing after June 30, 2026. The revolving credit facility was undrawn at year-end.
• Fourth-quarter results and guidance. On July 28, 2026, after the fiscal year ended, KLA reported fourth-quarter and full-year results and gave first-quarter fiscal 2027 guidance (summarised above).

One major event fell inside fiscal 2026 but after the March-quarter 10-Q was filed. KLA announced the ten-for-one stock split on May 7, 2026 (accession 0001193125-26-212093), and it took effect on June 11, 2026.

Filings that contain financial statements

Each of the following Form 8-K filings furnishes an earnings press release (Exhibit 99.1) with condensed consolidated unaudited balance sheets, statements of operations, statements of cash flows (three-month periods), segment revenue tables, and GAAP to non-GAAP reconciliations. Per-share figures in releases issued before the June 2026 stock split are stated on a pre-split basis; the July 28, 2026 release restates all per-share data for the ten-for-one split.

• Form 8-K filed July 31, 2025, accession 0000319201-25-000020: fiscal Q4 and full fiscal year 2025 (periods ended June 30, 2025; balance sheet at June 30, 2025 and 2024).
• Form 8-K filed October 29, 2025, accession 0000319201-25-000031: fiscal Q1 2026 (quarter ended September 30, 2025).
• Form 8-K filed January 29, 2026, accession 0000319201-26-000006: fiscal Q2 2026 (quarter ended December 31, 2025; six-month income statement columns also shown).
• Form 8-K filed April 29, 2026, accession 0000319201-26-000014: fiscal Q3 2026 (quarter ended March 31, 2026; nine-month income statement columns also shown).
• Form 8-K filed July 28, 2026, accession 0000319201-26-000024: fiscal Q4 and full fiscal year 2026 (periods ended June 30, 2026), with per-share data adjusted for the stock split.

Earnings releases and guidance

• In each of the four releases for fiscal Q1 through Q4 2026, the company stated revenue was above the midpoint of its guidance range. The Q4 release said GAAP and non-GAAP EPS were at the upper end of the guidance ranges.
• July 28, 2026 (accession 0000319201-26-000024): fiscal 2026 full-year revenue was $13.58 billion and GAAP net income $4.83 billion (GAAP diluted EPS $3.66, split-adjusted; non-GAAP diluted EPS $3.76). Fiscal 2025 comparatives in the same release: revenue $12.16 billion, GAAP net income $4.06 billion. Operating cash flow was $906.4 million for the quarter and $4.14 billion for the year; free cash flow was $817.1 million and $3.77 billion. Capital returns were $876.3 million for the quarter and $3.35 billion for the year. The CEO said momentum is accelerating in the second half of calendar 2026 and continuing through 2027.
• Fiscal Q1 2027 guidance (accession 0000319201-26-000024): revenue $4.0 billion +/- $200 million; GAAP gross margin 61.6% +/- 1.0%; non-GAAP gross margin 62.5% +/- 1.0%; GAAP diluted EPS $1.14 +/- $0.10; non-GAAP diluted EPS $1.16 +/- $0.10. The midpoint is above the $3.66 billion reported for fiscal Q4.
• April 29, 2026 (accession 0000319201-26-000014): the CEO said the company was "highly confident in our outlook for calendar year 2026" and cited the 17th consecutive annual dividend increase and the additional $7 billion repurchase authorization.

Capital actions

• Stock split. May 7, 2026 (accession 0001193125-26-212093): the Board approved a ten-for-one forward stock split, with holders of record on June 4, 2026 receiving nine additional shares per share held, and authorized common shares rising from 500,000,000 to 5,000,000,000. The split was completed: a Form 8-K filed June 12, 2026 (accession 0001193125-26-269375) reports the charter amendment became effective at 11:59 p.m. Eastern Time on June 11, 2026, and the restated certificate sets authorized shares at 5,000,000,000 common and 1,000,000 preferred. Split-adjusted trading began June 12, 2026 under the symbol KLAC.
• Dividend level raised and new buyback. March 12, 2026 (accession 0001193125-26-102999): the Board set a quarterly dividend level of $2.30 per share (pre-split), a 21% increase from $1.90, beginning with the dividend expected to be declared in May 2026. The Board also approved a new repurchase program of up to $7 billion, in addition to the $5 billion program announced in April 2025, which had $3.94 billion of authority remaining as of December 31, 2025. The same filing furnished the March 12, 2026 investor day materials.
• Quarterly dividend declarations in fiscal 2026. $1.90 per share declared August 7, 2025 (payable September 3, 2025; accession 0001193125-25-175585); $1.90 declared November 6, 2025 (payable December 2, 2025; accession 0001193125-25-272448); $1.90 declared February 5, 2026 (payable March 3, 2026; accession 0001193125-26-039637); $2.30 declared May 7, 2026 (payable June 2, 2026; accession 0001193125-26-212093); $0.23 declared August 6, 2026 (payable September 1, 2026 to holders of record August 17, 2026; accession 0001193125-26-338242). The $0.23 amount is the $2.30 level on a split-adjusted basis.
• Revolving credit facility. July 3, 2025 (Form 8-K filed July 8, 2025, accession 0001193125-25-156593): the company entered into a new unsecured five-year $1.5 billion revolving credit facility with JPMorgan Chase Bank, N.A. as administrative agent, expiring July 3, 2030 with two one-year extension options and an uncommitted increase of up to $500.0 million. Borrowings bear interest at Term SOFR plus 0.625% to 1.00%, depending on ratings, and a maximum leverage ratio covenant applies. The company terminated the commitments under its prior facility the same day, with no loans outstanding under it.

Governance

• November 5-6, 2025 (accession 0001193125-25-272448): the annual meeting was held November 5, 2025. All ten Board nominees were elected, PricewaterhouseCoopers LLP was ratified as auditor for the year ending June 30, 2026, and the advisory vote on executive compensation was approved. On November 6, 2025 the Board adopted amended By-laws, including updated procedures and disclosure requirements for stockholder nominations and proposals.
• August 7, 2025 (accession 0001193125-25-175585): Gary Moore and Emiko Higashi notified the Board of their retirement effective at the 2025 annual meeting, citing no disagreement with the company. Tracy Embree and Jason Conley were slated for nomination and were elected at that meeting. Michael McMullen became Chair of the Compensation and Talent Committee on November 5, 2025.

Mergers and acquisitions

No acquisition, divestiture, or merger agreement was announced in the Form 8-K filings reviewed for the period from July 2025 through August 2026. The earnings releases describe ongoing acquisition-related charges (amortization of previously acquired intangibles) only.

Items not seen in the filings reviewed

No Form 8-K reporting a guidance cut, restructuring, impairment, new debt issuance, or change in chief executive or chief financial officer appeared in the period. The fiscal 2025 goodwill and intangible impairment of $239.1 million related to the printed circuit board business appears as a fiscal 2025 comparative in the July 28, 2026 earnings release (accession 0000319201-26-000024), which attributes it to the deterioration of the long-term forecast for that business; it is not the subject of a separate event filing.

About this file

KLAC annual income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Source description, FY2026. Fiscal 2026 Form 10-K, filed 2026-08-06
• Source description, FY2025. Fiscal 2026 Form 10-K comparative columns, filed 2026-08-06
• Source description, FY2024. Fiscal 2026 Form 10-K comparative columns (income statement, cash flow and equity statement only; the balance sheet presents two year-ends), filed 2026-08-06

KLAC quarterly income statement, balance sheet and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Source description, Q4 FY2026. Derived: fiscal 2026 full year (Form 10-K) less the nine months ended March 31, 2026 (Form 10-Q); per-share amounts and share counts from the fourth-quarter results release furnished on Form 8-K on 2026-07-28
• Source description, Q3 FY2026. Fiscal 2026 third-quarter Form 10-Q, filed 2026-04-30; three-month cash flows from the third-quarter results release furnished on Form 8-K on 2026-04-29
• Source description, Q4 FY2025. Derived: fiscal 2025 full year (Form 10-K comparative column) less the nine months ended March 31, 2025 (Form 10-Q comparative column); per-share amounts and share counts from the fourth-quarter results release furnished on Form 8-K on 2026-07-28
• Source description, Q3 FY2025. Fiscal 2026 third-quarter Form 10-Q comparative columns, filed 2026-04-30; three-month cash flows from the third-quarter results release furnished on Form 8-K on 2026-04-29
• Note, Q4 FY2026. Income statement and cash flow lines are fiscal 2026 as reported in the 10-K (accession 0000319201-26-000027) less the nine months ended March 31, 2026 as reported in the 10-Q (accession 0000319201-26-000016). Every one of those lines equals the three-month column KLA printed in its fourth-quarter results release furnished on Form 8-K on July 28, 2026 (accession 0000319201-26-000024). Earnings per share and weighted-average share counts cannot be obtained by subtraction, so they are taken from that release, which presents them on the post-split basis. Segment revenues are also as printed in that release. The dividend declared per share is the fiscal-year amount in the 10-K's statement of stockholders' equity ($0.800) less the nine-month amount in the 10-Q ($5.70 before the split, $0.57 after). The balance sheet at June 30, 2026 is in the FY2026 annual entry.
• Note, Q3 FY2026. Income statement, balance sheet and segment revenues from the 10-Q (accession 0000319201-26-000016). The 10-Q was filed before the June 11, 2026 ten-for-one stock split and prints diluted earnings per share of $9.12 on 131,750 thousand diluted shares, basic earnings per share of $9.17 on 130,909 thousand basic shares, 130,710 thousand shares outstanding at March 31, 2026, and a $1.90 dividend declared per share; those are restated here to the post-split basis (per-share amounts divided by ten, share counts multiplied by ten). KLA's July 28, 2026 results release (accession 0000319201-26-000024) presents this quarter post-split as diluted earnings per share of $0.91 on 1,317,504 thousand diluted shares. The 10-Q presents cash flows only for the nine months, so the three-month cash flow figures are from the third-quarter results release furnished on Form 8-K on April 29, 2026 (accession 0000319201-26-000014), which also prints free cash flow of $622.3 million.
• Note, Q4 FY2025. Income statement and cash flow lines are fiscal 2025 as reported in the comparative column of the FY2026 10-K (accession 0000319201-26-000027) less the nine months ended March 31, 2025 as reported in the comparative column of the 10-Q (accession 0000319201-26-000016). Every one of those lines equals the June 2025 three-month column of the fourth-quarter results release furnished on Form 8-K on July 28, 2026 (accession 0000319201-26-000024), from which the post-split earnings per share, share counts and segment revenues are taken. Subtracting the 10-Q's nine-month segment figures from the 10-K's full-year figures gives Semiconductor Process Control revenue $1 thousand higher than the release prints, a rounding difference between the two documents; the release figure is used. The dividend declared per share is $0.675 for the year less $0.485 for the nine months ($4.85 before the split). The balance sheet at June 30, 2025 is in the FY2025 annual entry.
• Note, Q3 FY2025. Income statement and segment revenues from the comparative columns of the 10-Q (accession 0000319201-26-000016). The 10-Q prints this quarter before the stock split: diluted earnings per share of $8.16 on 133,303 thousand diluted shares, basic earnings per share of $8.21 on 132,607 thousand basic shares, and a $1.70 dividend declared per share; those are restated here to the post-split basis (per-share amounts divided by ten, share counts multiplied by ten). No balance sheet is presented: the 10-Q's comparative balance sheet is June 30, 2025, not March 31, 2025. Three-month cash flow figures are from the third-quarter results release furnished on Form 8-K on April 29, 2026 (accession 0000319201-26-000014), whose March 2025 column also prints free cash flow of $990.0 million.

KLAC year-to-date income statement and cash flow

Taken from the SEC filings and normalized to actual dollars.

• Source description, Nine months ended March 31, 2026 (first three quarters of fiscal 2026). Fiscal 2026 third-quarter Form 10-Q, filed 2026-04-30
• Source description, Nine months ended March 31, 2025 (first three quarters of fiscal 2025). Fiscal 2026 third-quarter Form 10-Q comparative columns, filed 2026-04-30
• Note, Nine months ended March 31, 2026 (first three quarters of fiscal 2026). KLA's fiscal 2026 is complete, so the FY2026 annual entry is the current full-year and trailing-twelve-month view; no separate trailing-twelve-month block is presented. This block keeps the nine-month figures from the 10-Q, which are the basis on which the fourth quarter is derived. Per-share amounts and share counts are restated from the 10-Q's pre-split figures (diluted earnings per share of $26.26 on 132,073 thousand diluted shares; dividends declared of $5.70 per share) by dividing per-share amounts by ten and multiplying share counts by ten.
• Note, Nine months ended March 31, 2025 (first three quarters of fiscal 2025). Nine-month comparative columns of the 10-Q. Restated from the pre-split figures printed there (diluted earnings per share of $21.32 on 134,066 thousand diluted shares; dividends declared of $4.85 per share). Includes the $239.1 million impairment of goodwill and purchased intangible assets that falls in fiscal 2025.

Adjustments

Notes

• Annual figures for fiscal 2026, 2025 and 2024 are from the FY2026 Form 10-K (accession 0000319201-26-000027), filed August 6, 2026. The 10-K's balance sheet presents June 30, 2026 and June 30, 2025 only, so FY2024 carries an income statement, cash flow and segment revenues but no balance sheet.
• Quarterly coverage: the third quarters of fiscal 2026 and fiscal 2025 come from the FY2026 Q3 Form 10-Q (accession 0000319201-26-000016), filed April 30, 2026. The fourth quarters of fiscal 2026 and fiscal 2025 are derived by subtracting the 10-Q's nine-month figures from the 10-K's full-year figures, and every derived income statement and cash flow line equals the three-month column in KLA's fourth-quarter results release furnished on Form 8-K on July 28, 2026 (accession 0000319201-26-000024). The first and second quarters of either fiscal year are not presented, because neither the 10-K nor the 10-Q presents full financial statements for them; the 10-Q prints only selected lines for those quarters.
• On June 11, 2026 KLA effected a ten-for-one stock split. The 10-Q predates it, so its per-share amounts and share counts are restated here to the post-split basis by dividing per-share amounts by ten and multiplying share counts by ten. That is why the third-quarter and nine-month earnings per share carry a third decimal place (for example $0.912, from the $9.12 the 10-Q prints for the March 2026 quarter). KLA's July 2026 release presents the March 2026 quarter post-split as diluted earnings per share of $0.91 on 1,317,504 thousand diluted shares, consistent with the restatement.
• Fourth-quarter earnings per share and weighted-average share counts cannot be obtained by subtracting nine months from a year, so they are taken from the July 28, 2026 results release, which is furnished rather than filed and is unaudited.
• KLA's statement of operations does not print gross profit or an operating-income subtotal; it lists interest expense and other expense (income), net among costs and expenses. Gross profit here is total revenues less costs of revenues, and operating income is gross profit less research and development, selling, general and administrative, and impairment of goodwill and purchased intangible assets. Operating income less interest expense and less other expense (income), net equals the income before income taxes KLA prints, in every period. Margins and the effective tax rate are computed from these figures and rounded to one decimal place.
• Sign conventions: other_expense_income_net keeps the statement's sign, so a negative figure is net other income. Capital expenditures, common stock repurchases and dividends paid are stored as positive amounts of cash paid out; the net cash from investing and financing activities totals keep the statement's sign, so a negative figure is net cash used. Free cash flow is net cash provided by operating activities less capital expenditures, the definition KLA uses in its results releases; it does not deduct or add proceeds from capital-related government assistance.
• The 10-Q presents cash flows only for the nine months. The three-month cash flow figures for the March 2026 and March 2025 quarters are therefore from KLA's third-quarter results release furnished on Form 8-K on April 29, 2026 (accession 0000319201-26-000014), not from the 10-Q; the fourth-quarter cash flow figures are derived from the 10-K and 10-Q as described above.
• All of KLA's debt is senior unsecured notes reported as long-term debt, with no current portion at any balance sheet date presented; the earliest maturity is March 15, 2029. total_debt is the carrying amount of long-term debt. The principal outstanding was $5.95 billion at both June 30, 2026 and June 30, 2025 (10-K Note 7); the carrying amount is lower because of unamortized discount and debt issuance costs and, at June 30, 2026, the fair value of interest rate swaps.
• Segment revenues exclude corporate allocations and the effects of changes in foreign currency exchange rates, so the three segments sum to slightly more or less than total revenues. The difference is carried as effects_of_changes_in_foreign_currency_exchange_rates; KLA prints that reconciling line in its results releases and 10-Q, and the 10-K also prints it, in its segment note's reconciliation of total reportable segment revenue to total revenues: $264 thousand, $(25) thousand and $(2,501) thousand for fiscal 2026, 2025 and 2024 (accession 0000319201-26-000027).
• Shares outstanding are taken from the statements of stockholders' equity: 1,306,983 thousand at June 30, 2026 and 1,320,227 thousand at June 30, 2025 (10-K), and 130,710 thousand pre-split at March 31, 2026 (10-Q), shown restated as 1,307,100 thousand. The 10-K cover reports 1,306,546,783 shares outstanding as of August 3, 2026.
• Dividends declared per share are from the statements of stockholders' equity: $0.800, $0.675 and $0.565 for fiscal 2026, 2025 and 2024 (10-K, post-split) and $1.90 and $1.70 per quarter before the split for the March 2026 and March 2025 quarters (10-Q). The fourth-quarter amounts ($0.23 and $0.19) are the fiscal-year amount less the nine-month amount; $0.23 corresponds to the $2.30 pre-split quarterly dividend the April 29, 2026 release said would begin with the dividend expected to be declared in May 2026.
• Fiscal 2025 includes a $239.1 million impairment of goodwill and purchased intangible assets, recorded in the first nine months of that year and attributed in KLA's results releases to the continued deterioration of the long-term forecast for its PCB business; fiscal 2024 includes $289.5 million. Fiscal 2026 has none.
• The 10-K says certain prior-year amounts were reclassified to conform to the current presentation without material effect. The 10-Q's June 30, 2025 balance sheet column agrees with the 10-K's line for line, and the derived fourth quarters agree with the July 2026 release, so no period here was restated.

Uncertainties

• The first and second quarters of fiscal 2026 and fiscal 2025 are not presented. Neither the 10-K nor the 10-Q presents full financial statements for them. The 10-Q prints only selected lines: its key quarterly table shows total revenues, costs of revenues, gross margin, net income and diluted net income per share for the September 2025 and December 2025 quarters, and its statements of stockholders' equity show quarterly net income, share repurchases and dividends declared for all four of these quarters. The quarterly record therefore holds only the third and fourth quarters of each year.
• Third-quarter and nine-month per-share amounts and share counts are restated arithmetically from pre-split figures that were themselves rounded to the cent, so the restated earnings per share are exact only to about a tenth of a cent. For the March 2026 quarter KLA's own post-split figures are $0.91 diluted earnings per share on 1,317,504 thousand diluted shares; no post-split figure for the March 2025 quarter or for either nine-month period appears in the filings read for this record.
• Fourth-quarter earnings per share and share counts, the three-month cash flows for both third quarters, and the fourth-quarter segment revenues come from results releases furnished on Form 8-K, which are unaudited and are not part of the 10-K or 10-Q.
• Gross profit, operating income, the margins built on them, free cash flow for periods where KLA does not print it, and total_debt are computed from printed lines rather than printed directly.

Company details

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Source filings