KLA 2025 Q3 Earnings Strong Performance as Net Income Surges 80.9%

KLA (KLAC), ranking 141st by market capitalization, reported its fiscal 2025 Q3 earnings on Apr 30th, 2025. The total revenue of KLA increased by 29.8% to $3.06 billion in 2025 Q3, up from $2.36 billion in 2024 Q3. KLA reported earnings per share (EPS) of $8.41, surpassing the analyst consensus estimate of $8.08. The company exceeded revenue expectations with revenues totaling $3.06 billion, compared to the anticipated $3.01 billion. KLA provided guidance for the June quarter, expecting revenue to range between $2.92 billion and $3.22 billion.

Revenue

KLA's revenue growth was driven by the Semiconductor Process Control segment, contributing $2.74 billion. The Specialty Semiconductor Process segment added $156.50 million, while PCB and Component Inspection generated $168.55 million. The revenue was offset by corporate allocations and effects of changes in foreign currency exchange rates amounting to $-840,000, culminating in total revenues of $3.06 billion.

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. This substantial EPS growth underscores KLA's robust financial health.

Price Action

The stock price of KLA has climbed 3.79% during the latest trading day, has climbed 6.94% during the most recent full trading week, and has climbed 4.32% month-to-date.

Post-Earnings Price Action Review

KLA's earnings report metrics have influenced its stock price to varying extents. The backtest data suggests a positive effect of revenue on the stock, with a 3-Day win rate of 61.90% indicating that the stock price increases within three days after earnings release about 62% of the time. Similarly, net income shows a 3-Day and 10-Day win rate of 66.67%, suggesting a potent positive influence on the stock price. However, diluted EPS impacts are more moderate, with a 3-Day win rate of 52.38% and a 30-Day win rate of 52.38%, indicating a less pronounced effect on stock price compared to revenue and net income. Overall, these metrics generally lead to immediate and substantial increases in KLA's stock price, though EPS influences are more gradual.

CEO Commentary

Richard Wallace, CEO, highlighted KLA's strong performance with March quarter revenue of $3.06 billion, driven by robust demand in leading-edge logic, high-bandwidth memory, and advanced packaging, which now exceeds $850 million in revenue. He noted, "While there's notable macro uncertainty... KLA has not seen any change in demand." Wallace emphasized the company's capital return strategy and confidence in growth opportunities, stating, "Our consistent performance further demonstrates the critical nature of KLA's products." He acknowledged the complexities of the current global trade environment but maintained an optimistic outlook for continued growth in the semiconductor industry.

Guidance

KLA expects total revenue for the June quarter to be $3.075 billion, plus or minus $150 million, with GAAP diluted EPS forecasted at $8.28, plus or minus $0.78. For the full year, the company anticipates gross margins of approximately 62.5%, plus or minus 50 basis points, and continues to expect WFE to grow by a mid-single-digit percentage in 2025. The effective tax rate is projected to be 13.5% for June. KLA aims to outperform the WFE market growth, driven by investments in leading-edge technology and advanced packaging.

Additional News

Recently, KLA has seen significant insider trading activity. The company's President and CEO, Richard P. Wallace, sold 14,306 shares for an estimated $9,485,021, while EVP & CFO Bren D. Higgins sold 7,008 shares, estimated at $5,078,136. Moreover, hedge fund activity shows a dynamic shift, with 697 institutional investors adding KLA shares to their portfolio and 737 reducing their positions. Notably, Mizuho Securities USA LLC removed 99.6% of its KLA holdings in Q4 2024. KLA has also been active in government contracts, receiving $257,443 in award payments over the past year, with significant awards for microelectronics design and software renewal. These developments indicate active engagement from insiders and institutional investors, reflecting confidence in KLA’s strategic direction.