KLA Tops Revenue Estimates at $4.14 Billion; Adjusted EPS Beats Consensus

KLA Corp (Nasdaq: KLAC) reported first-quarter fiscal 2027 revenue of $4.14 billion, above the $4.04 billion analysts expected, and adjusted EPS of $1.22 against the $1.18 consensus estimate, in an 8-K filed Wednesday, Oct. 28, 2026. The quarter ended Sept. 30. Revenue rose from $3.21 billion a year earlier.

GAAP net income was $1.55 billion, up from $1.12 billion a year earlier, and GAAP diluted EPS was $1.18. Non-GAAP net income was $1.60 billion. Revenue and both EPS measures were above the midpoints of the company's guidance ranges.

Segment results

Semiconductor Process Control, the largest unit, brought in $3.75 billion, up from $2.90 billion a year earlier. Specialty Semiconductor Process revenue was $139 million, compared with $120 million, and PCB and Component Inspection revenue was $242 million, compared with $189 million.

Chief Executive Rick Wallace said the September quarter beat the midpoint of guidance across all key metrics. He pointed to demand tied to the AI ecosystem buildout, advanced packaging and high-performance computing.

Guidance

For the fiscal second quarter ending in December, KLA expects total revenue of $4.7 billion, plus or minus $200 million. The average analyst estimate for that quarter was $4.49 billion. The company expects non-GAAP diluted EPS of $1.44, plus or minus $0.11, against a $1.36 consensus estimate. It expects GAAP gross margin of 61.8%, plus or minus 1.0 percentage point.

Cash flow and capital returns

Operating cash flow was $1.53 billion in the quarter, and free cash flow was $1.34 billion. Over the last twelve months, free cash flow totaled $4.04 billion.

KLA returned $1.24 billion to shareholders in the quarter, including $936 million in share repurchases and $305 million in dividends. Cash and cash equivalents were $1.53 billion at quarter end, down from $1.65 billion on June 30.