Q4 2025 KLA Corp Earnings Call Transcript
Key Points
- KLA Corp (KLAC) reported strong financial results for the June 2025 quarter, with revenue of $3.175 billion and non-GAAP diluted EPS of $9.38, both above guidance.
- The company achieved record free cash flow of over $1 billion for the quarter, highlighting its strong cash generation capabilities.
- KLA Corp's leadership in process control is crucial for enabling AI infrastructure build-out, driving growth in the semiconductor industry.
- Advanced packaging systems revenue is expected to exceed $925 million in 2025, up from previous estimates, indicating strong demand and growth potential.
- The company announced a 12% increase in its quarterly dividend, reflecting confidence in long-term shareholder value and commitment to capital returns.
- Operating expenses were $603 million, about $8 million above the guidance midpoint, indicating higher-than-expected costs.
- The gross margin forecast for the September quarter is impacted by global tariffs, with an estimated 50 to 100 basis points headwind.
- KLA Corp's revenue from China is expected to decline by 10% to 15% in 2025, reflecting geopolitical and market challenges.
- The company's backlog has decreased, indicating a normalization of lead times and potential future revenue challenges.
- There is uncertainty regarding the long-term impact of tariffs on gross margins, with ongoing assessments needed to mitigate cost pressures.
Good afternoon, everyone. My name is Bou, and I will be your conference operator today. At this time, I would like to welcome everyone to the KLA Corporation June quarter 2025 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.
Welcome to the June 2025 quarterly earnings call. I am joined by our CEO Rick Wallace; and our CFO, Bren Higgins. We'll discuss today's results as well as our September quarter outlook released after the market closed and 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 for references may refer to calendar years. The earnings materials contain a detailed reconciliation of GAAP to non-GAAP results.
KLA's IR website also contains future events, presentations, corporate governance information, and links to our
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