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Mar 31

KLA Q3 2025 Earnings Report

KLA reported stronger-than-expected Q3 results, with earnings and revenue surpassing guidance midpoints.

Key Takeaways

KLA delivered a solid Q3 FY25, posting stronger than expected revenue and EPS. The company highlighted strong demand in semiconductor process control, significant capital returns, and announced a $5B share repurchase along with a dividend hike.

Revenue and EPS both exceeded the guidance midpoints.

Net income rose to $1.09B from $602M a year earlier.

KLA raised its quarterly dividend to $1.90/share.

The company authorized an additional $5B in share repurchases.

Total Revenue
$3.06B
Previous year: $2.36B
+29.8%
EPS
$8.41
Previous year: $5.26
+59.9%
Cash Flow from Ops
$1.07B
Previous year: $910M
+17.8%
Capital Returns
$733M
Previous year: $569M
+28.6%
Dividend per Share
$1.9
Cash and Equivalents
$1.86B
Previous year: $1.85B
+0.5%
Free Cash Flow
$990M
Previous year: $838M
+18.1%
Total Assets
$15.2B
Previous year: $15B
+1.5%

KLA

KLA

KLA Revenue by Segment

Forward Guidance

KLA expects Q4 FY25 revenue and EPS to remain strong, with GAAP EPS projected between $7.50 and $9.06, reflecting confidence in ongoing semiconductor investment.

Positive Outlook

  • GAAP revenue guidance midpoint at $3.075B
  • GAAP EPS guidance midpoint above Q3 actuals
  • Non-GAAP EPS expected up to $9.31
  • Strong margin guidance (Non-GAAP gross margin up to 64.0%)
  • Continued relevance in AI-driven semiconductor investments

Challenges Ahead

  • Macroeconomic and global trade uncertainties persist
  • No specific geographic revenue breakdown offered
  • Market volatility could impact share repurchase timing
  • High concentration in semiconductor segment poses risk
  • Competitive pressure and innovation cycles remain intense