The earnings call reflected strong financial performance and growth outlook, driven by leading-edge technology investments and robust service business growth. Challenges include gross margin pressure and potential headwinds in the China market. Despite these issues, the company's strategic position and market demand remain strong.

Company Guidance

In the recent KLA earnings call for Q1 2025, the company reported impressive financial results, surpassing their guidance expectations with a revenue of $2.84 billion and non-GAAP diluted EPS of $7.33. The gross margin stood at 61.2%, while operating expenses were reported at $560 million, contributing to an operating margin of 41.5%. The company generated a quarterly free cash flow of $935 million, and the total capital return for the quarter reached $765 million. Looking forward to Q2 2025, KLA provided a revenue guidance of $2.95 billion, with a non-GAAP gross margin expectation of 61.5% and non-GAAP diluted EPS guidance of $7.75. The company remains optimistic about the strengthening demand in leading-edge logic and memory markets, anticipating continued growth driven by investments in AI and advanced packaging technologies, while also forecasting a decrease in China-related revenues.

Revenue and EPS Exceeded Expectations

KLA reported revenue of $2.84 billion and non-GAAP diluted EPS of $7.33, both at the upper end of their guidance ranges.

Strong Service Business Growth

The service business grew to $644 million in the September quarter, up 5% sequentially and 15% year-over-year, marking the 49th consecutive quarter of growth.

Positive Cash Flow and Capital Returns

Quarterly free cash flow was $935 million, with total capital return of $765 million, including $567 million in share repurchases and $198 million in dividends.

Outlook for Continued Growth

KLA expects another year of growth fueled by leading-edge foundry, logic, and memory investments, despite lower demand from China.

Advanced Packaging Portfolio Growth

Customer adoption of KLA's advanced packaging portfolio is expected to drive revenue exceeding $500 million in CY '24 and continue to grow in CY '25.

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KLA (KLAC) Earnings, Revenues Date & History

The upcoming earnings date is based on a company’s previous reporting, and may be updated when the actual date is announced

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KLAC Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Jan 23, 2025	2025 (Q2)	7.75 / -	6.16	―	―	―
Oct 30, 2024	2025 (Q1)	7.04 / 7.33	5.74	27.70% (+1.59)
Jul 24, 2024	2024 (Q4)	6.15 / 6.60	5.4	22.22% (+1.20)
Apr 25, 2024	2024 (Q3)	4.97 / 5.26	5.49	-4.19% (-0.23)
Jan 25, 2024	2024 (Q2)	5.91 / 6.16	7.38	-16.53% (-1.22)
Oct 25, 2023	2024 (Q1)	5.37 / 5.74	7.06	-18.70% (-1.32)
Jul 27, 2023	2023 (Q4)	4.86 / 5.40	5.81	-7.06% (-0.41)
Apr 26, 2023	2023 (Q3)	5.32 / 5.49	5.13	7.02% (+0.36)
Jan 26, 2023	2023 (Q2)	7.10 / 7.38	5.59	32.02% (+1.79)
Oct 26, 2022	2023 (Q1)	6.22 / 7.06	4.64	52.16% (+2.42)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed

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KLAC Earnings-Related Price Changes

Report Date	Price 1 Day Before	Price 1 Day After	Percentage Change
Oct 30, 2024	$689.89	$664.39	-3.70%
Jul 24, 2024	$752.30	$759.31	+0.93%
Apr 25, 2024	$668.50	$701.59	+4.95%
Jan 25, 2024	$636.04	$594.09	-6.60%

Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.

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