KLA Corporation Reports Strong Q1 FY2027 Results and Provides Q2 Guidance

Executive Summary

On October 28, 2026, KLA Corporation (NASDAQ: KLAC) filed a Form 8-K under Item 2.02 (Results of Operations and Financial Condition) furnishing its first-quarter fiscal year 2027 financial results for the quarter ended September 30, 2026.

Q1 FY2027 Financial Performance

• Revenues: Total revenues reached $4.136 billion, exceeding the midpoint of the company's prior guidance range of $4.00 billion ± $200 million and growing sequentially from $3.658 billion in Q4 FY2026 and $3.210 billion in Q1 FY2026.
• Profitability:
  • GAAP Net Income: $1.549 billion ($1.18 per diluted share), up from $1.121 billion ($0.85 per diluted share) in Q1 FY2026.
  • Non-GAAP Net Income: $1.603 billion ($1.22 per diluted share), up from $1.167 billion ($0.88 per diluted share) in Q1 FY2026.
  • Note: Per share metrics reflect the ten-for-one forward stock split effective June 11, 2026.
• Cash Flow & Capital Return:
  • Operating cash flow for Q1 was $1.53 billion, with free cash flow of $1.34 billion.
  • Total capital returned to shareholders during the quarter amounted to $1.24 billion.

Q2 FY2027 Outlook

KLA issued upbeat guidance for its second fiscal quarter ending December 31, 2026:

• Revenues: $4.70 billion ± $200 million
• GAAP Gross Margin: 61.8% ± 1.0%
• Non-GAAP Gross Margin: 62.5% ± 1.0%
• GAAP Diluted EPS: $1.41 ± $0.11
• Non-GAAP Diluted EPS: $1.44 ± $0.11

Business Drivers

Management highlighted ongoing tailwinds across process control, driven by AI infrastructure buildouts, leading-edge foundry/logic design ramps, advanced packaging, and higher complexity in memory device manufacturing.