KLA Corporation: AI infrastructure expansion driving leading-edge process control intensity

KLA Corporation 2026 Q4: Financial Performance summary

• Capital return: $3.3 billion over the past 12 months with free cash flow margin of 28%.
• Gross margin was 62.4%, at the upper end of the guidance range, driven by more favorable services mix and manufacturing scale offsets to memory pricing headwinds and tariff effects.
• June quarter revenue hit a record $3.66 billion, above the guidance midpoint of $3.575 billion, +7% sequentially and +15% year-over-year.
• Non-GAAP diluted EPS was $1.05 and GAAP diluted EPS was $1.04, both at the upper end of their respective guidance ranges.
• Non-GAAP net income was $1.39 billion and GAAP net income was $1.36 billion; free cash flow was $817 million on $906 million operating cash flow.
• Operating expenses were $682 million (R&D $399 million; SG&A $283 million), with operating margin of 43.7% and incremental operating margin of 59%.
• Total cash/marketable securities were $4.9 billion versus $5.9 billion of debt, supporting capital returns (Q4/June quarter total $876 million: $571 million buybacks; $305 million dividends).