KLA CORP (NASDAQ:KLAC), a leading supplier of process control systems for the semiconductor industry, reported financial results for its fiscal second quarter of 2026 after the market close on Wednesday. The company delivered revenue that modestly exceeded analyst expectations, but its bottom-line earnings per share came in slightly below consensus, a mixed outcome that appears to have triggered a negative after-hours market reaction.
Quarterly Results Versus Expectations
The company reported revenue of $3.30 billion for the quarter ended December 31, 2025. This represents a 7.2% increase compared to the same period last year. On the profitability front, KLA posted non-GAAP earnings per share (EPS) of $8.85.
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Reported Revenue: $3.30 billion
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Analyst Revenue Estimate: Approximately $3.31 billion
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Verdict: Revenue slightly exceeded expectations.
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Reported Non-GAAP EPS: $8.85
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Analyst EPS Estimate: $8.98
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Verdict: EPS slightly missed expectations.
Market Reaction and Guidance
The immediate market response was decisively negative, with the stock trading down approximately 7.7% in after-hours activity following the earnings release. This sell-off suggests investor focus may have settled more heavily on the earnings miss rather than the revenue beat.
A potential mitigating factor in the report was the company's forward-looking guidance. KLA provided revenue guidance for the upcoming fiscal third quarter with a midpoint of $3.35 billion. This outlook surpasses the analyst consensus estimate of $3.34 billion for the next quarter, indicating management confidence in near-term demand for its semiconductor manufacturing equipment.
Press Release Summary
The company's official press release highlighted the following key financial figures for the fiscal Q2 2026:
- Total GAAP revenues of $3.30 billion.
- GAAP net income of $1.15 billion.
- GAAP diluted earnings per share of $8.68.
- Non-GAAP diluted earnings per share of $8.85.
The release noted that total revenues came in above the midpoint of the company's previously provided guidance range.
Broader Performance Context
The negative after-hours move stands in contrast to the stock's recent performance. In the weeks leading up to the earnings report, KLAC shares had shown strength:
- Up 0.1% over the past week.
- Up 0.2% over the past two weeks.
- Up 0.4% over the past month.
This suggests the earnings release served as a significant catalyst, resetting investor sentiment based on the quarterly execution and future outlook.
Looking Ahead
Analysts will now turn their attention to the company's ability to meet its own optimistic guidance for Q3 and the full 2026 fiscal year. Current consensus estimates project full-year sales of approximately $13.39 billion. The disparity between the positive revenue guidance and the negative earnings miss will likely be a key topic of discussion on the accompanying earnings conference call, as investors seek clarity on margin pressures, operational costs, or other factors that impacted profitability this quarter.
For a detailed breakdown of historical earnings, future estimates, and analyst projections, you can review the data on Chartmill.
Disclaimer: This article is for informational purposes only and does not constitute financial advice, a recommendation, or an offer to buy or sell any securities. Investors should conduct their own research and consult with a qualified financial advisor before making any investment decisions.
