Executive Summary
KLA Corporation (0JPO.L) delivered a strong QQ1 2026 performance, highlighted by robust revenue growth, a high gross margin, and substantial free cash flow generation. Revenue reached USD 3.210 billion, up 12.96% year over year and 1.10% sequentially, while gross profit was USD 1.967 billion for a gross margin of 61.3%. Operating income of USD 1.338 billion produced an operating margin of 41.66%, and net income of USD 1.121 billion translated to a diluted EPS of USD 8.47. The company generated USD 1.162 billion of operating cash flow and USD 1.066 billion of free cash flow, underpinning a strong balance sheet with ample liquidity and modestly leveraged capital structure. Management-supported execution appears to reflect sustained demand for process-control, yield-management, and inspection/metrology solutions across leading nodes and packaging deployments, along with ongoing high-margin service and software offerings.
Key Performance Indicators
Key Insights
Revenue: USD 3.210B (YoY +12.96%, QoQ +1.10%); Gross Profit: USD 1.967B (YoY +16.09%, QoQ -2.05%), Gross Margin 61.27%.
Operating Income: USD 1.338B (YoY +19.40%, QoQ -4.80%), Operating Margin 41.66%.
Net Income: USD 1.121B (YoY +18.52%, QoQ -6.80%), Net Margin 34.93%.
EPS (Diluted): USD 8.47 (YoY +20.71%, QoQ -6.59%).
Cash Flow: Operating Cash Flow USD 1.162B; Free Cash Flow USD 1.066B; CAPEX USD 95.9M; FCF Margin ~33% of revenue.
Liquidity & Leverage: Cash & short-term investments USD ...
Financial Highlights
Revenue: USD 3.210B (YoY +12.96%, QoQ +1.10%); Gross Profit: USD 1.967B (YoY +16.09%, QoQ -2.05%), Gross Margin 61.27%.
Operating Income: USD 1.338B (YoY +19.40%, QoQ -4.80%), Operating Margin 41.66%.
Net Income: USD 1.121B (YoY +18.52%, QoQ -6.80%), Net Margin 34.93%.
EPS (Diluted): USD 8.47 (YoY +20.71%, QoQ -6.59%).
Cash Flow: Operating Cash Flow USD 1.162B; Free Cash Flow USD 1.066B; CAPEX USD 95.9M; FCF Margin ~33% of revenue.
Liquidity & Leverage: Cash & short-term investments USD 4.683B; Net Debt USD 3.939B; Current ratio ~2.69x; Debt/Equity ~1.18x; ROE ~22.5%; ROA ~6.9%.
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
3.21B |
12.96% |
1.10% |
| Gross Profit |
1.97B |
16.09% |
-2.05% |
| Operating Income |
1.34B |
19.40% |
-4.80% |
| Net Income |
1.12B |
18.52% |
-6.80% |
| EPS |
8.51 |
20.71% |
-6.59% |
Management Commentary
N/A. Earnings call transcript data was not provided in the input. Themes and quotes below are placeholder indicators pending transcript access.
- Theme: Sustained demand for process-control and yield-management capabilities across advanced nodes.
- Theme: High-margin services and software contribute to durable profitability and sticky revenue base.
- Theme: Balance sheet strength supports ongoing R&D investment and selective capital allocation.
Forward Guidance
No formal numeric guidance was provided in the supplied data. Based on QQ1 2026 results and industry dynamics, the implicit trajectory suggests continued revenue momentum from semiconductor capex, particularly in advanced nodes and packaging, with a material emphasis on margin preservation and free cash flow generation. Investors should monitor: (1) semiconductor equipment capex cycles and node transitions, (2) installed-base service revenue growth, (3) backlog and bookings cadence, and (4) currency and geopolitical risks given multi-jurisdictional operations. Absent explicit targets, the assessment points toward a constructive but cyclical outlook, with upside potential if capex intensity remains elevated and mix favors high-margin inspection/metrology solutions.