KLA Posts Record Revenue of $4.14B, Guides Above Consensus; Shares Rise 3% After Hours

KLAC reported revenue of $4.14 billion for its fiscal first quarter ended September, up 29% from a year earlier and ahead of the $4.04 billion consensus. Adjusted EPS of $1.22 beat the $1.18 estimate, the fourth straight quarter of beats on both lines. GAAP diluted EPS was $1.18 and GAAP net income $1.55 billion; per-share figures reflect KLA's 10-for-1 stock split in June. The quarter was the company's highest revenue on record, and operating margin reached a record 46.1%.

Guidance did more work than the beat. KLA forecast December-quarter revenue of $4.7 billion, plus or minus $200 million, against the $4.49 billion analysts expected, and adjusted EPS of $1.44, plus or minus $0.11, versus a $1.36 consensus. KLA's CEO said the September quarter beat the midpoint of guidance across all key metrics, pointing to process control demand for advanced packaging and AI infrastructure. Management said it expects the wafer fab equipment market to reach roughly $150 billion in 2026 and exceed $200 billion in 2027.

Shares rose about 3% in after-hours trading on Oct. 28, from a $158.77 close. The stock was up about 26.5% year to date before the report, against a 12.8% gain for the S&P 500. KLA returned $1.24 billion to shareholders in the quarter, including $935.8 million of buybacks, and generated $1.34 billion in free cash flow.

What to watch: whether the regular session holds the after-hours gain after a broader chip selloff on Oct. 29, and whether advanced-packaging and leading-edge logic demand keep KLA's growth ahead of the overall equipment market into 2027.