KLAC Shares Tumble Despite Q4 Beat Amid Underwhelming Guidance

KLA Corporation (KLAC) reported fiscal fourth-quarter revenue of $3.66 billion, a record June quarter, up 15% year over year, with non-GAAP EPS of $1.05, beating Wall Street's $3.6 billion and $1.00 estimates. Shares tumbled after the July 28 report, closing that session down more than 6% and sliding further after hours toward the mid-$170s.

The drop landed amid a broader semiconductor rout, not just KLA's numbers. The Philadelphia Semiconductor Index fell into bear-market territory and the Nasdaq-100 dropped 1.8% the same day, on doubts about AI spending durability and a report that a Chinese state-backed firm had begun mass-producing chipmaking equipment, hitting peers such as ASML hard.

KLA's guidance added to the caution: fiscal Q1 2027 revenue of $4.0 billion (plus or minus $200 million) and non-GAAP EPS of $1.16 roughly matched the $3.91 billion consensus but offered little upside. Gross margin, 62.4% in the June quarter, is guided nearly flat at 62.5%, citing memory pricing and tariff pressure into 2027.

Demand still looks healthy: KLA raised its 2026 wafer-fab-equipment outlook to about $150 billion, mid-20% growth from $120 billion in 2025, with advanced-packaging revenue on pace to top $1.1 billion, up more than 70%. Full-year revenue reached $13.58 billion. Watch whether margins catch up as memory pricing and China risks persist.

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