Q4 2026 KLA Corp Earnings Call Transcript
Key Points
- KLA Corp (KLAC) reported record revenue of $3.66 billion for the June quarter, surpassing the midpoint of guidance.
- The company is experiencing strong demand driven by AI infrastructure investments and advanced packaging requirements.
- KLA's advanced packaging process control systems revenue is expected to grow by over 70% year-over-year in 2026.
- KLA Services delivered $820 million in revenue, up 17% year-over-year, highlighting strong customer reliance on KLA's tools.
- The company has a strong cash position with $4.9 billion in cash and marketable securities, supporting capital returns to shareholders.
- KLA is facing challenges from a difficult memory pricing environment and tariff headwinds impacting gross margins.
- The company is dealing with supply chain constraints, particularly in long lead-time materials, affecting first-half performance.
- Despite strong demand, KLA's ability to raise prices to offset increased costs, particularly in memory, is limited.
- The competitive landscape in China poses challenges, with local suppliers potentially gaining share if import restrictions are lifted.
- KLA's gross margin guidance remains flat despite a 10% revenue increase, indicating ongoing cost pressures.
Good afternoon. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the KLA Corporation June quarter 2026 earnings conference call and webcast. (Operator Instructions)
I would now like to turn the call over to Kevin Kessel, Vice President of Investor Relations and Market Analytics. Please go ahead.
Welcome to the June 2026 quarterly earnings call. I'm joined by our CEO, Rick Wallace; and our CFO, Bren Higgins. We will discuss today's results as well as our outlook, which we released after the market close and is available on our website along with supplemental materials.
We are presenting today's discussion and metrics on a non-GAAP financial basis unless otherwise specified. All full year references we make refer to calendar years. The earnings materials contain a detailed reconciliation of GAAP to non-GAAP results. It should also be noted that effective June 11, 2026, KLA completed a 10 for 1 stock split, all current
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