KLA Corporation · KLAC · FY2026 Q3 · Calendar Q2 2026

KLA Q3 FY2026: Revenue Beats on AI-Driven Advanced Packaging, Guidance Raised

KLA's Q3 FY2026 results beat consensus on both revenue ($3.415B, +1.2% vs. estimate) and EPS ($9.40, +2.5% vs. estimate), with revenue up 11% year-over-year driven by AI-fueled advanced packaging demand. Management raised full-year guidance from mid-single-digit to high-teen revenue growth and lifted the WFE market outlook beyond $140 billion. A $7 billion incremental buyback authorization and 17th consecutive dividend increase reinforced management's confidence. Despite the beat and raised guidance, the stock declined 3.6% on the report versus a +1.0% benchmark move before drifting 9.8% higher over the subsequent period.

Reported After market closeNASDAQTechnology $265.65B market cap
100quality score

Company context

Snapshot as of publication

KLA Corporation specializes in creating, manufacturing, and distributing advanced solutions vital for process control, process optimization, and yield enhancement throughout the global semiconductor and broader electronics industries. The company organizes its business into four main segments: Semiconductor Process Control, Specialty Semiconductor Process, PCB, Display and Component Inspection, and an 'Other' category. For integrated circuit (IC) fabrication, KLA offers a comprehensive range of products. These include systems for wafer inspection, review, and metrology; defect inspection and metrology for both wafers/substrates and reticles; chemical and materials quality analysis tools; and real-time process management and wafer handling diagnostics essential for IC and original equipment manufacturer (OEM) production. Furthermore, the company develops software for live process control, defect excursion identification, process corrections, and defect classification. KLA also supplies refurbished and remanufactured equipment.…

Earnings scorecard

Reported versus consensus
Reported EPS $0.94 Consensus $1
EPS surprise +2.5% Reported versus consensus
Reported revenue $3.42B Consensus $3.37B
Revenue surprise +1.2% Reported versus consensus

Market reaction

event-close to next-session close
Stock move -3.6% Event window
SPY move +1.0% Same window
Abnormal move -4.6% Stock minus SPY
Volume 2.2× Versus trailing sessions
Subsequent drift +9.8% Up to 20 sessions
KLACSPY benchmark

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Transcript intelligence

What changed

Revenue of $3.415 billion beat the $3.374B estimate by 1.2%, and non-GAAP EPS of $9.40 beat the $9.17 estimate by 2.5%. Revenue grew 11% YoY, driven by advanced packaging and AI-related demand. Services revenue increased 16% YoY with a 31% free-cash-flow margin. The WFE market outlook was raised to over $140 billion for 2026, and full-year revenue growth guidance was lifted from mid-single-digit to high-teen percent. Advanced packaging revenue is now expected near $1 billion in 2026, up from $635 million in 2025. The company announced a $7 billion incremental share-repurchase authorization and its 17th consecutive dividend increase, with $875 million returned in the quarter. A long-term 2030 financial model targets 13-17% revenue CAGR and 13-15% services CAGR.

Guidance delta

Guidance was raised from the prior quarter's mid-single-digit revenue growth outlook to high-teen percent revenue growth for full-year 2026. The gross margin target remained at approximately 62%. The wafer-fabrication-equipment market outlook was lifted to over $140 billion for 2026. Advanced packaging revenue is now expected to approach $1 billion in 2026, up from $635 million in 2025. Prior-quarter guidance sentiment was 'maintained'; this quarter it shifted to 'raised.'

Key takeaways

  • Revenue grew 11% YoY to $3.415 billion, beating estimates by 1.2%.
  • Non-GAAP EPS of $9.40 beat consensus by 2.5%.
  • Guidance raised from mid-single-digit to high-teen revenue growth for 2026.
  • Advanced packaging revenue projected near $1 billion in 2026, up from $635 million in 2025.
  • $7 billion incremental buyback authorization and 17th consecutive dividend increase announced.
  • WFE market outlook raised to over $140 billion for 2026.

Management priorities

  • Implement the 2030 financial model with higher long-term revenue targets.
  • Invest in next-generation product development and infrastructure.
  • Expand services revenue targeting 13-15% CAGR.
  • Develop new products in X-ray metrology and advanced inspection technologies.
  • Maintain strong capital return program through dividends and share repurchases.
  • Sustain leadership in advanced wafer-level packaging process control.

Related earnings events

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Sources

  1. Earnings call transcript and parsed analysis · 2026-05-11T10:29:34.698584+00:00
  2. FN2 earnings calendar · 2026-07-26T00:37:12.209961+00:00
  3. Polygon adjusted daily market bars · 2026-07-28T11:31:25.535278+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-07-28T11:31:25.532416+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated . For educational purposes only; not investment advice.