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Dec 31, 2024

KLA Q2 2025 Earnings Report

KLA's Q2 2025 results exceeded guidance midpoint despite new export controls, demonstrating revenue growth and strong profitability.

Key Takeaways

KLA Corporation announced its Q2 Fiscal Year 2025 results, with revenues of $3.08 billion and GAAP net income per diluted share of $6.16. The company's performance was above the midpoint of its guidance, driven by growth in leading-edge technologies and strong profitability, despite the impact of new U.S. government export controls.

Total revenues reached $3.08 billion, hitting the upper end of the guidance range.

GAAP diluted EPS was reported at $6.16, impacted by a $239.1 million impairment charge.

Non-GAAP diluted EPS was $8.20, near the upper end of the guidance range.

Cash flow from operating activities was $849.5 million, and free cash flow was $757.2 million for the quarter.

Total Revenue
$3.08B
Previous year: $2.49B
+23.7%
EPS
$8.2
Previous year: $6.16
+33.1%
Gross Profit
$1.86B
Previous year: $1.51B
+22.9%
Cash and Equivalents
$1.84B
Previous year: $1.67B
+10.4%
Free Cash Flow
$757M
Previous year: $545M
+38.8%
Total Assets
$15B
Previous year: $14.3B
+5.1%

KLA

KLA

KLA Revenue by Segment

Forward Guidance

KLA anticipates total revenues to be in the range of $3.0 billion +/- $150 million, GAAP gross margin to be in the range of 60.6% +/- 1.0%, Non-GAAP gross margin to be in the range of 62.0% +/- 1.0%, GAAP diluted EPS to be in the range of $7.77 +/- $0.60 and Non-GAAP diluted EPS to be in the range of $8.05 +/- $0.60 for the third quarter of fiscal year 2025.

Positive Outlook

  • GAAP net income per diluted share is expected to be $7.17 to $8.37.
  • Acquisition-related charges are expected to be $0.40.
  • Restructuring, severance and other charges are expected to be $0.02.
  • Income tax effect of non-GAAP adjustments is expected to be negative $0.14.
  • Non-GAAP net income per diluted share is expected to be $7.45 to $8.65.

Revenue & Expenses

Visualization of income flow from segment revenue to net income