icon
icon
icon
icon
Upgrade
Upgrade

News /

Articles /

KLA's Q2 2025 Earnings Call: Key Contradictions on China Revenue, Process Control, and Growth Outlook

Earnings DecryptFriday, Jan 31, 2025 3:05 am ET
3min read
These are the key contradictions discussed in KLA's latest 2025Q2 earnings call, specifically including: China Revenue Impact and Export Control Clarity, Process Control Intensity Expectations, and Process Control's Growth Outlook:

KLAC Total Revenue YoY, P/E(TTM)...


Revenue Growth and Market Share Increase:
- KLA Corporation reported revenue of $3.08 billion for the December quarter, exceeding the previous quarter and reaching a new record.
- Growth was driven by increased market share, particularly in Process Control, where revenue grew by over 12%, and strong demand in leading-edge logic and advanced packaging segments.

Process Control and WFE Market Outperformance:
- KLA's Process Control business grew 15% year-over-year, outperforming the mid-single-digit growth rate of the overall WFE market.
- This outperformance is attributed to increased process control intensity at advanced nodes like N2, higher value wafers, and larger die sizes, all of which require more inspection and management.

Advanced Packaging and Service Growth:
- KLA's advanced packaging portfolio revenue grew to approximately $500 million in 2024, and is expected to exceed $800 million in 2025.
- The increased demand for more complex heterogeneous chip integration and the value of process control in the chip package are driving growth in this segment.

Export Control Challenges and Impact:
- KLA expects the impact of recent U.S. export controls on its revenue in 2025 to be approximately $500 million.
- The majority of this impact will affect the systems business, with a cautious view on the potential for partial mitigation through licensing opportunities.

Financial Performance and Capital Returns:
- KLA's free cash flow for 2024 was $3.4 billion, with total capital returns of $2.9 billion.
- The strong financial performance is driven by consistent and healthy capital returns, which are prioritized as fundamental to delivering value for shareholders.

Comments

Add a public comment...
Post
Refresh
Disclaimer: The news articles available on this platform are generated in whole or in part by artificial intelligence and may not have been reviewed or fact checked by human editors. While we make reasonable efforts to ensure the quality and accuracy of the content, we make no representations or warranties, express or implied, as to the truthfulness, reliability, completeness, or timeliness of any information provided. It is your sole responsibility to independently verify any facts, statements, or claims prior to acting upon them. Ainvest Fintech Inc expressly disclaims all liability for any loss, damage, or harm arising from the use of or reliance on AI-generated content, including but not limited to direct, indirect, incidental, or consequential damages.
You Can Understand News Better with AI.
Whats the News impact on stock market?
Its impact is
fork
logo
AInvest
Aime Coplilot
Invest Smarter With AI Power.
Open App