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KLA Corporation — Earnings Slide Presentation (Fiscal Q4 2026)
KLA Corporation (KLAC) · 0 slides · Filed Oct 21, 2026
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Slide 1 — Q4 Fiscal 2026 Earnings
1 KLA Non-Confidential | Unrestricted Quarter Ended June 30, 2026 • Reported July 28, 2026 Q4 Fiscal 2026 Earnings
Slide 2 — Forward Looking Statements
2 KLA Non-Confidential | Unrestricted Forward Looking Statements Statements in this presentation other than historical facts, such as statements pertaining to: (i) future industry demand for semiconductors, WFE, and advanced packaging; (ii) our market position for the future and future growth in demand for our products; (iii) our forecast of financial measures for the following quarter, calendar 2026, calendar 2027 and our 2030 target model; (iv) our future revenues by customer segment; (v) our long-term financial targets and underlying assumptions; (vi) our future investment plan on R&D, technology, manufacturing capacity and infrastructure; and (vii) future shareholder returns, are forward-looking statements and subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including but not limited to: our vulnerability to a weakening in the condition of the financial markets and the global economy; risks related to our international operations; evolving Bureau of Industry and Security of the U.S. Department of Commerce rules and regulations and their impact on our ability to sell products to and provide services to certain customers in China; tariffs and other trade restrictions; costly intellectual property disputes that could result in our inability to sell or use the challenged technology; risks related to the legal, regulatory and tax environments in which we conduct our business; differing stakeholder expectations, requirements and attention to ESG matters and the resulting costs, risks and impact on our business; unexpected delays, difficulties and expenses in executing against our environmental, climate, or other ESG target, goals and commitments; our ability to attract, retain and motivate key personnel; our vulnerability to disruptions and delays at our third-party service providers; cybersecurity threats, cyber incidents affecting our and our business partners’ systems and networks; our inability to access critical information in a timely manner due to system failures; risks related to acquisitions, integrations, strategic alliances or collaborative arrangements; climate change, earthquake, flood or other natural catastrophic events, public health crises or terrorism and the adverse impact on our business operations; the war between Ukraine and Russia, continued escalation of hostilities in Iran and the Middle East, and the significant military activity in those regions; lack of insurance for losses and interruptions caused by terrorists and acts of war, and our self-insurance of certain risks including earthquake risk; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in interest rates and the market values of our portfolio investments; risks related to tax and regulatory compliance audits; any change in taxation rules or practices and our effective tax rate; compliance costs with federal securities laws, rules, regulations, NASDAQ requirements, and evolving accounting standards and practices; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end-markets, or changes in customer capital spending patterns; our vulnerability to a highly concentrated customer base; the cyclicality of the industries in which we operate; our ability to timely develop new technologies and products that successfully address changes in the industry; risks related to artificial intelligence; our ability to maintain our technology advantage and protect proprietary rights; our ability to compete in the industry; availability and cost of the materials and parts used in the production of our products; our ability to operate our business in accordance with our business plan; risks related to our debt and leveraged capital structure; we may not be able to declare cash dividends at all or in any particular amount; liability to our customers under indemnification provisions if our products fail to operate properly or contain defects or our customers are sued by third parties due to our products; our government funding for R&D is subject to audit, and potential termination or penalties; we may incur significant restructuring charges or other asset impairment charges or inventory write offs; we are subject to risks related to receivables factoring arrangements and compliance risk of certain settlement agreements with the government; and risks related to the Court of Chancery of the State of Delaware being the sole and exclusive forum for certain actions and proceedings Revised based on the latest 10-K we reviewed. Company to update as needed. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this press release, please refer to KLA’s Annual Report on Form 10-K for the year ended June 30, 2025, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA assumes no obligation to, and does not currently intend to, update these forward-looking statements.
Slide 3 — The KLA Operating Model
3 KLA Non-Confidential | Unrestricted The KLA Operating Model Focused on driving sustainable profitability and growth Consistent Strategy and Execution Application of common processes and discipline Cascades throughout the organization Strong focus on talent development Management By Metrics Culture of performance and accountability Expectation of continuous improvement Superior margins driven by market leadership and differentiation Financial Discipline and Rigor Exert efficiency and operating discipline in our investments Strong track record of high returns Focused on enhancing shareholder value
Slide 4 — $3.66B
4 KLA Non-Confidential | Unrestricted June Quarter 2026 Income Statement Highlights $3.66B Revenue 62.4% Gross Margin* 43.7% Operating Margin* $1.39B Net Income* $1.05 Non-GAAP Diluted EPS* 1 $1.04 GAAP Diluted EPS 1 * Non-GAAP metric – please refer to the appendix for reconciliation to GAAP 1 On, June 11, 2026 after market close, KLA effected a 10-for-1 stock split. All current and prior-period EPS and other per-share amounts have been retroactively adjusted to reflect the split. (Right) The Kronos patterned wafer inspection system detects critical defects for process development and production monitoring in advanced wafer-level packaging (AWLP) applications.
Slide 5 — Breakdown of Revenue by Reportable Segments and End Markets
5 KLA Non-Confidential | Unrestricted Breakdown of Revenue by Reportable Segments and End Markets Revenue Q4-FY26 ($M) Y/Y Growth % Q/Q Growth % Semiconductor Process Control (Systems + Services) PCB and Component Inspection (Systems + Services) Specialty Semiconductor Process (Systems + Services) Revenue % Q4-FY26: Semi Process Control End Market System Revenue 79% 21% Foundry & Logic Memory $3,257 +13% +6% $160 +13% -3% $241 +56% +44% $3,658 +15% +7% 89% 4% 7% Total: 1 1 Represents approximate Semi Process Control system-only sales to Foundry/Logic customers or Memory customers only, which does not represent our aggregate customer base Total
Slide 6 — Breakdown of Revenue by Major Product and Regions
6 KLA Non-Confidential | Unrestricted $1,781 +1% +2% $728 +61% +18% $137 +11% -5% $168 +96% +76% $820 +17% +6% $24 -39% -48% $3,658 +15% +7% Wafer Inspection Patterning Specialty Semi Process PCB and Component Inspection Services Other Breakdown of Revenue by Major Product and Regions Q4-FY26 Revenue by Region Total: Revenue Q4-FY26 ($M) Y/Y Growth % Q/Q Growth % Revenue % 18% 5% 26% 4% 6% 10% 31% North America Europe China Rest of Asia Japan Korea Taiwan 49% 20% 4% 4% 22% 1% 1 Included in the Semiconductor Process Control Segment 1 Total
Slide 7 — Strong Investment Grade Balance Sheet
7 KLA Non-Confidential | Unrestricted 800 1,000 400 750 1,450 800 4,902 1,500 - 1,500 Liquidity CY26 … CY29 CY30 … CY32 … CY34 … CY49 CY50 … CY52 … CY62 Bonds Drawn Revolver Undrawn Revolver Cash Strong Investment Grade Balance Sheet Balance Sheet Summary 1 ($M) Total Cash 2 $ 4,902 Working Capital $ 8,077 Total Assets $ 17,952 Debt 3 $ 5,887 Total Shareholders’ Equity $ 6,350 Bond Maturity Profile Bonds Outstanding $5.95B Weighted Average Interest Rate 4 4.67% Weighted Average Maturity 18.1 years Investment Grade Credit Ratings Moody’s A2 S&P A- Fitch A- Bond Maturity Profile $M 1 As of 06/30/2026; 2 Total Cash includes Cash, Cash Equivalents and Marketable Securities, 3 $63M in un-amortized debt issuance discounts and costs, and fair value adjustments related to interest rate swaps, 4 Excluding impacts from interest rate swaps 250 1,200 500 250 2
Slide 8 — FCF Generation Fuels Consistent Capital Return to Shareholders
8 KLA Non-Confidential | Unrestricted FCF Generation Fuels Consistent Capital Return to Shareholders Committed to long-term >90% FCF returned to shareholders through dividends and share repurchases 1 Free Cash Flow (FCF) = Cash Flow from Operating Activities minus Capital Expenditures 2 FCF Margin defined as FCF/Revenue; Non-GAAP metric – Please refer to Appendix for reconciliation to GAAP $1.8 $2.5 $3.0 $3.2 $3.4 $4.4 $3.8 29% 31% 28% 33% 31% 34% 28% CY20 CY21 CY22 CY23 CY24 CY25 LTM FCF $B FCF Margin % Investment in Growth and New Products Market Leadership and Differentiated Solutions Strong Margins and FCF Capital Returns to Shareholders Free Cash Flow1 and FCF Margin2 Value Creation
Slide 9 — ~$47
9 KLA Non-Confidential | Unrestricted 0.05 0.05 0.06 0.06 0.08 0.12 0.15 0.17 0.19 0.20 0.21 0.23 0.28 0.31 0.35 0.39 0.47 0.54 0.61 0.74 0.92 CY06 CY07 CY08 CY09 CY10 CY11 CY12 CY13 CY14 CY15 CY16 CY17 CY18 CY19 CY20 CY21 CY22 CY23 CY24 CY25 NTM $/per share 1,403 4,483 1,760 2,059 2,025 2,290 2,748 7,000 CY21 CY22 CY23 CY24 CY25 LTM Remaining Share Repurchase Authorization $M 3 Consistent Returns to Shareholders Across Both Repurchases & Dividends Share Repurchases - Last 5 Years 1 Track Record of Dividend Increases 5 ~$47 Avg price per share since 2021 5 Mar. 12, 2026 Announced 17th consecutive annual dividend increase, up 21% to $0.23/share from $0.19/share 4 1 Cash Settlement Date basis. 2 Includes $3B Accelerated Share Repurchases (ASR). 3 Remaining Share Repurchase Authorization includes $7.0B authorization announced 3/12/26 and $2.7B remaining previous authorization as of 6/30/2026. 4 Excludes $16.50 per share special dividend in Dec. 2014. 5 Reflects 10 for 1 stock split. ~16% Dividend CAGR 2006 – Current Annual 2
Slide 10 — $571M
10 KLA Non-Confidential | Unrestricted Free Cash Flow and Capital Return Highlights $571M June Quarter Share Buyback $2.29B LTM Share Buyback $305M June Quarter Dividends Paid $1.06B LTM Dividends Paid * Free Cash Flow (FCF) = Cash Flow from Operating Activities minus Capital Expenditures. FCF Margin = FCF/Revenue. FCF Conversion = FCF / Non-GAAP Net Income. Non-GAAP metric Refer to Appendix for Reconciliation to GAAP. Capital Returns = Dividends + Share Repurchases $817M June Quarter Free Cash Flow* 22% June Quarter FCF Margin* 59% June Quarter FCF Conversion* (Above) The KLA 3935 is part of the 39xx Series (also called Gen5) and is designed for leading-edge logic and foundry manufacturing. It is a super resolution broadband plasma patterned wafer defect inspection system that supports wafer-level defect discovery, yield learning, and inline monitoring with high throughput, enabling rapid defect detection. Other key capabilities of the system include hotspot discovery, process debug, EUV print check, and line monitoring.
Slide 11 — Guidance for Q1 FY2027
11 KLA Non-Confidential | Unrestricted Guidance for Q1 FY2027 Strong, resilient and delivering shareholder value Macro Assumptions Semi PC Revenue By End Market 1 Foundry/Logic: ~73% Memory: ~27% DRAM ~90% | NAND ~10% Model Assumptions Non-GAAP Operating Expenses*: ~$690M Other Income & Expense (OIE)*, Net: ~$25M Effective Tax Rate*: ~14.5% Diluted Share Count: ~1.312B * Non-GAAP metric – Refer to Appendix for Reconciliation to GAAP September 2026 Quarter Guidance Revenue $4.0B +/- $200M Non-GAAP Gross Margin* 62.5% +/- 1% GAAP Diluted EPS $1.14 +/- $0.10 Non-GAAP Diluted EPS* $1.16 +/- $0.10 1 Represents approximate Semi Process Control system-only sales to Foundry/Logic customers or Memory customers only, which does not represent our aggregate customer base
Slide 12 — KLA 2030 Target Model Financial Framework – Split Adjusted 2
12 KLA Non-Confidential | Unrestricted 2026 Target Model 2030 Target Model Ongoing Financial Framework Revenue $14B +/- $500M $26B +/- $2.5B ~13% - 17% CAGR Gross Margin% 1 ~63% ~63.5% +/- 50 bps R&D% 1 ~13% ~11% SG&A% 1 ~8% ~7% Operating Margin% 1 41-43% 45% - 47% 40% - 50% (Incremental) Diluted EPS 1, 2 $3.80 +/- $0.15 $8.40 +/- $0.80 ~1.3x Revenue Growth Rate Capital Allocation Target > 85% of FCF Target > 90% of FCF Hybrid Approach: Dividend + Repurchases KLA 2030 Target Model Financial Framework – Split Adjusted 2 Focused on Driving Consistent, Profitable Growth and Delivering Shareholder Value Macro Assumptions CY25-CY30E semiconductor industry CAGR of ~11% Wafer Equipment grows ~1 pt. faster than Semi to $215B +/- $20B ~60% foundry / logic, ~40% memory Process Control market grows > WFE Business Assumptions Intensity / market share gain at leading edge of core WFE Advanced Packaging augments growth KLA share of Wafer Equipment grows > 150 bps Services grows 13-15% EPC grows mid-high single digits Planning tax rate at 14.5% 1 Non-GAAP measure 2 On, June 11, 2026 after market close, KLA effected a 10-for-1 stock split. Diluted EPS has been adjusted to reflect the split. KLA 2030 Target Model Originally Published on March 12, 2026, Investor Day
Slide 13 — Appendix
Appendix Reconciliation of Financial Results
Slide 14 — Reconciliation of Non-GAAP Financial Measures
14 KLA Non-Confidential | Unrestricted Reconciliation of Non-GAAP Financial Measures
Slide 15 — Reconciliation of Free Cash Flow and Related Metrics
15 KLA Non-Confidential | Unrestricted Reconciliation of Free Cash Flow and Related Metrics
Slide 16 — Reconciliation of Guidance
16 KLA Non-Confidential | Unrestricted Reconciliation of Guidance Q4 FY2026 Guidance Range: CY 2026 Guidance:
Slide 17 — Reconciliation of Non-GAAP Financial Measures
17 KLA Non-Confidential | Unrestricted Reconciliation of Non-GAAP Financial Measures
Slide 18 — 18
18 KLA Non-Confidential | Unrestricted