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Mar 31, 2023

KLA Q3 2023 Earnings Report

Revenue and EPS exceeded guidance midpoint due to solid execution in a challenging industry environment.

Key Takeaways

KLA Corporation reported Q3 fiscal year 2023 results with revenue of $2.43 billion and GAAP EPS of $5.03, both above the midpoint of guidance. The company also saw increased market leadership in the process control market, validating its customer focus and product portfolio strategy.

Total revenues were $2.43 billion, above the midpoint of the guidance range.

GAAP diluted EPS was $5.03 and non-GAAP diluted EPS was $5.49, each finishing above the midpoint of the respective guidance ranges.

Cash flow from operating activities and free cash flow were $1,010.9 million and $925.9 million, respectively.

Capital returns were $659.0 million, split between dividends paid and share repurchases.

Total Revenue
$2.43B
Previous year: $2.29B
+6.3%
EPS
$5.49
Previous year: $5.13
+7.0%
Gross Profit
$1.43B
Previous year: $1.4B
+2.2%
Cash and Equivalents
$1.57B
Previous year: $1.42B
+10.8%
Free Cash Flow
$926M
Previous year: $719M
+28.9%
Total Assets
$13.7B
Previous year: $12B
+13.9%

KLA

KLA

KLA Revenue by Segment

Forward Guidance

For the fourth quarter of fiscal 2023 ending in June, KLA expects total revenues between $2,125 million and $2,375 million, GAAP diluted EPS in the range of $3.87 to $5.07, and non-GAAP diluted EPS in the range of $4.23 to $5.43.

Positive Outlook

  • GAAP gross margin is expected to be in a range of 57.58% to 59.85%
  • Non-GAAP gross margin is expected to be in a range of 59.75% to 61.75%
  • GAAP diluted EPS is expected to be in a range of $3.87 to $5.07
  • Non-GAAP diluted EPS is expected to be in a range of $4.23 to $5.43

Revenue & Expenses

Visualization of income flow from segment revenue to net income