The Trust Layer for Market Analysts

KLAC Corporation reported strong results for the March quarter, with revenue up 4% sequentially and 11% year-over-year, driven by increased investment in leading-edge Foundry Logic and High-Bandwidth Memory. Non-GAAP diluted EPS was $9.40, and GAAP diluted EPS was $9.12. AI is seen as a core driver of performance and growing momentum. KLA achieved the number one position in Process Control for Advanced Wafer-Level Packaging for 2025 due to continued customer adoption. The company expects advanced packaging revenue to grow from approximately $635 million in 2025 to $1 billion in 2026, exceeding prior estimates. Free cash flow over the past 12 months was $4 billion, with a free cash flow margin of 31%. This indicates KLAC is one of the most profitable companies globally in its sector, with free cash flow margins consistently above 60% and approaching 50% over the last twelve months and prior twelve months respectively. The management has revised forecasts upwards, anticipating accelerating revenue growth and increasing market share in advanced packaging, memory, storage, CPU, and AI segments for 2026 and 2027. This broad-based demand, particularly for AI-related applications, is driving increased revenue and market share, leading to upward revisions in earnings estimates.