KLA Corporation (NASDAQ: KLAC) has reported robust financial results for its third quarter of fiscal year 2025, ended March 31, 2025. Demonstrating strong market execution amid global economic uncertainties, KLA achieved total revenues of \(3.06 billion, surpassing the midpoint of its guidance range of \)3.0 billion +/- \(150 million. GAAP diluted earnings per share (EPS) stood impressively at \)8.16, while non-GAAP diluted EPS reached $8.41, both exceeding guidance forecasts.
Key financial highlights for Q3 FY 2025 include: - GAAP net income of \(1.09 billion, a significant increase from \)602 million in Q3 FY 2024. - Revenue growth from \(2.36 billion in Q3 FY 2024 to \)3.06 billion in Q3 FY 2025, reflecting a notable 29.7% year-over-year increase. - Cash flow from operating activities at \(1.07 billion for the quarter and \)2.92 billion for the last nine months, underlining strong cash generation. - Free cash flow of \(990 million in Q3 FY 2025, underscoring operational efficiency. - Capital returns via dividends and stock repurchases totaling \)732.5 million during the quarter, affirming shareholder value commitment.
KLA’s Board of Directors has approved a quarterly dividend increase to \(1.90 per share, up from \)1.70, marking the sixteenth consecutive annual dividend hike, effective May 2025. Additionally, an increased share repurchase authorization of \(5 billion was announced, augmenting available repurchase capacity to more than \)5.4 billion as of March 31, 2025.
This quarter’s results reflect KLA’s leadership in semiconductor process control, a sector critical for enabling cutting-edge Artificial Intelligence (AI) investments by semiconductor manufacturers. CEO Rick Wallace emphasized the strategic importance of KLA’s technology in supporting these developments and highlighted confidence in the company’s growth prospects despite global trade uncertainties.
Segment-wise, Semiconductor Process Control revenue surged to \(2.74 billion for Q3, up 30.7% from \)2.10 billion in the comparable prior year quarter. Specialty Semiconductor Process and PCB and Component Inspection segments also showed year-over-year growth, reinforcing diversified strength across KLA’s product portfolio.
Financial Position and Forward Outlook: KLA’s balance sheet remains robust with total assets approximating \(15.19 billion as of March 31, 2025. The company is well-positioned to sustain investments and capital allocation strategies with stockholders’ equity of \)4.00 billion and manageable long-term debt of $5.88 billion.
The company’s guidance for Q4 FY 2025 projects total revenues around \(3.075 billion (+/- \)150 million) and GAAP diluted EPS ranging from \(7.50 to \)9.06. The expected GAAP gross margin is approximately 61.7% +/- 1.0%, with non-GAAP gross margin forecast between 63.0% and 64.0%.
This comprehensive financial performance and proactive capital management demonstrate KLA’s commitment to delivering sustained shareholder value and its critical role in semiconductor process innovation, especially as the global semiconductor industry continues to fuel advancements in AI and next-generation technologies.
For a detailed view of KLA’s Q3 FY 2025 financials, refer to the official SEC filing: KLA Corporation Fiscal 2025 Q3 8-K Report.
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