What drove KLAC's EPS surprises in 2024 and 2025?

KLAC's EPS has experienced surprises in both 2024 and 2025, with variations in different directions and underlying factors influencing these outcomes.

1. 2024 EPS Surprise: KLAC's EPS for Q2 2024 was $6.16, surpassing the analyst estimate of $5.88 by 6.0%. This positive surprise was driven by strong revenue growth, particularly in the Semiconductor Process Control segment, which saw a 34% year-over-year increase. Additionally, the Services segment showed significant growth, with a 15% year-over-year increase in revenue. Despite these positive contributions, the EPS of $6.16 represented a decline of 16.5% year-over-year, indicating that while the company outperformed expectations, its profitability was still under pressure compared to the previous year's quarter.
2. 2025 EPS Surprise: In Q2 2025, KLAC's EPS was $8.20, exceeding the analyst estimate of $7.76 by 6.8%. This positive surprise was fueled by robust revenue performance, with the company reporting a 23.7% increase in revenue year-over-year to $3.08 billion. The Semiconductor Process Control segment led this growth, with a 25.6% year-over-year surge in revenue. The Services segment also contributed to the revenue boost, showing an 18.1% year-over-year growth. Similar to 2024, the Q2 2025 EPS of $8.20 marked an 11.9% year-over-year increase, reflecting KLAC's continued strong performance and market leadership.

In summary, KLAC's EPS surprises in both years were primarily driven by strong revenue growth across key segments, including Semiconductor Process Control and Services, which outpaced market expectations. Despite the positive surprises, the company's EPS in 2024 was lower than that in 2025, indicating that while the revenue growth has been robust, the overall profitability trend is improving over time.