KLA 2025 Q3 Earnings Beats Expectations with 80.9% Net Income Growth

KLA (KLAC), ranking 147th by market capitalization, reported its fiscal 2025 Q3 earnings on May 01st, 2025. The company surpassed expectations with its revenue of $3.06 billion, exceeding the Zacks Consensus Estimate of $3.01 billion by 1.92%. KLA also delivered an EPS surprise of +4.34%, with an EPS of $8.41 compared to the consensus estimate of $8.06. The company’s guidance indicates strong financial expectations, projecting EPS between $7.45 and $8.65 and revenue between $2.9 billion and $3.2 billion, aligning closely with analysts’ estimates.

Revenue

KLA's fiscal 2025 Q3 revenue reached $3.06 billion, a significant increase of 29.8% from the previous year. The Semiconductor Process Control segment led the growth, generating $2.74 billion. The Specialty Semiconductor Process segment contributed $156.50 million, while the PCB and Component Inspection segment added $168.55 million. Corporate allocations and changes in foreign currency exchange rates slightly reduced total revenue by $840,000.

Earnings/Net Income

KLA's EPS rose 84.1% to $8.21 in 2025 Q3 from $4.46 in 2024 Q3, marking continued earnings growth. Meanwhile, the company's profitability strengthened with net income of $1.09 billion in 2025 Q3, marking 80.9% growth from $601.54 million in 2024 Q3. The EPS performance exceeded expectations.

Price Action

The stock price of KLA has edged down 1.87% during the latest trading day, edged down 1.90% during the most recent full trading week, and edged down 0.51% month-to-date.

Post-Earnings Price Action Review

The post-earnings price action for KLA (Kulicella Acquisition Corp.) stock, based on backtesting from 2020 to 2025, shows a varied performance influenced by different metrics and timeframes. Revenue backtesting reveals a 61.90% win rate over three days, increasing to 66.67% over ten days, and then falling to 52.38% over thirty days. This suggests positive short-term returns, particularly within ten days of earnings release, with a maximum return of 16.99% over thirty days. Net income shows similar trends, with a strong potential for positive returns in the first ten days post-release. EPS backtesting indicates moderate likelihood for positive returns, with slightly lower win rates compared to revenue and net income. Overall, revenue and net income metrics exhibit a stronger immediate response than EPS.

CEO Commentary

Amy Sullivan – Chief Executive Officer: Over the past 1.5 years, we have been focused on transforming our Kirkland’s Home brand by reengaging our core customer and strengthening our omni-channel capabilities. We have delivered positive brick-and-mortar comparable sales growth for five consecutive quarters and improved adjusted EBITDA by $6 million year-over-year. Our strategic partnership with Beyond is pivotal, helping to recapitalize our balance sheet and drive growth. While we face challenges in the current operating environment, we are implementing a capital-light store conversion strategy and believe our omni-channel approach positions us well for future success.

Guidance

We are unable to provide formal guidance at this time due to evolving tariff policies and macroeconomic uncertainty. However, we acknowledge a soft start to fiscal 2025, with flat comparable store sales in March and April. We anticipate that our strategic partnership with Beyond could accelerate our timeline to achieve long-term targeted margins and growth.

Additional News

KLA Corporation recently announced an increase in its quarterly dividend to $1.90 per share, marking the sixteenth consecutive annual increase. This demonstrates the company’s confidence in its financial health and growth prospects. Additionally, KLA’s Board of Directors authorized an additional $5 billion for repurchases of the company’s common stock, supplementing the existing share repurchase authorization. These moves underscore KLA's commitment to returning value to shareholders and maintaining a robust capital allocation strategy. Investment analysts have responded positively, with several firms raising their price targets for KLA stock, contributing to a “Moderate Buy” consensus rating.