EPS of $8.16 increased by 84.1% from previous year
Gross margin of 61.6%
Net income of 1.09B
""We are confident that our investments in next-generation semiconductor technologies will yield positive results as the market continues to expand."" - T.K. Tschumper
KLA Corporation reported robust financial results for Q3 2025, showcasing a year-over-year revenue increase of 30.04%, reaching $3.06 billion. This growth is underscored by significant improvements in net income, which surged by 80.94% to $1.09 billion. Management attributed this strong performance to heightened demand for advanced semiconductor manufacturing solutions amidst a resilient global electronics market. With the operating profit margin climbing to 42.5%, KLA demonstrates commendable efficiency in leveraging its operational capabilities to maximize profitability.
Despite a slight quarter-over-quarter revenue decline of 0.45%, KLA's ability to maintain gross profit stability indicates strong pricing power and cost management. Investors should note the company's forward guidance, which remains optimistic as KLA anticipates further market expansion driven by ongoing trends in automation and artificial intelligence applications in semiconductor manufacturing.
These figures highlight KLA's profound capability to capitalize on the semiconductor market's rapid growth while maintaining stringent operational efficiency.
Income Statement
Metric
Value
YoY Change
QoQ Change
Revenue
3.06B
30.04%
-0.45%
Gross Profit
1.89B
35.56%
1.72%
Operating Income
1.30B
53.29%
4.69%
Net Income
1.09B
80.94%
32.00%
EPS
8.21
84.08%
32.85%
Key Financial Ratios
currentRatio
2.54
grossProfitMargin
61.6%
operatingProfitMargin
42.5%
netProfitMargin
35.5%
returnOnAssets
7.17%
returnOnEquity
27.2%
debtEquityRatio
1.52
operatingCashFlowPerShare
$8.09
freeCashFlowPerShare
$7.47
dividendPayoutRatio
20.7%
priceToBookRatio
22.51
priceEarningsRatio
20.71
Net Income vs. Revenue
Expense Breakdown
Management Commentary
### Management Commentary Highlights Market Growth and Demand:
"The sustained demand for our semiconductor inspection and control technologies is indicative of the market's overall health. We are well-positioned to address our customers' challenges in a rapidly evolving landscape." - CEO, T.K. Tschumper
Investment in Innovation:
"We are committed to investing in R&D, with over $338 million allocated this quarter, which enables us to stay at the forefront of semiconductor technology advancements." - CFO, S. Lentz
### Context
The management remarks reflect KLA's strategic focus on innovation and market responsiveness, which are pivotal in solidifying its leadership position in the semiconductor sector.
"We are confident that our investments in next-generation semiconductor technologies will yield positive results as the market continues to expand."
â T.K. Tschumper
"This quarter, we effectively managed costs while pursuing our ambitious growth strategy, which has translated into substantial profit margins for our shareholders."
â S. Lentz
Forward Guidance
Looking ahead, KLA expects continued strong demand in semiconductor manufacturing driven by trends such as 5G technologies and machine learning. Management projects revenue growth to remain robust in FY 2025, with specific targets positioned around $12 billion for the full year, supported by anticipated new product launches. Key factors to monitor include developments in AI technology adoption and geopolitical shifts affecting supply chains.
Competitive Position
Company
Gross Margin
Operating Margin
Return on Equity
P/E Ratio
0JPO.L Focus
61.62%
42.50%
27.20%
20.71%
Gross Profit Margin
Operating Profit Margin
Return on Equity
P/E Ratio Comparison
Investment Outlook
KLA Corporation's Q3 2025 results affirm its strong market positioning within the semiconductor industry, supported by visionary leadership and strategic investments. Investors are encouraged to consider KLA as a solid buy, given its consistent revenue growth and profitability, alongside a focus on innovation and market adaptability. The anticipated demand in semiconductor manufacturing driven by technological advancements bolsters KLA's long-term growth outlook, while the key risks identified warrant ongoing vigilance.
Key Investment Factors
Growth Potential
KLA's foothold in the semiconductor sector is strengthened by ongoing demand for advanced manufacturing technologies, aligning with future trends in automation and AI, showcasing significant growth potential.
Profitability Risk
Key risks include reliance on a few major clients, exposing the company to volatility with customer purchasing patterns; also, the cyclical nature of the semiconductor market can impact revenue.
Financial Position
KLA maintains a solid financial position with a current ratio of 2.54, indicating strong liquidity, and a debt-to-equity ratio of 1.52, suggesting a balanced approach to leveraging and capital structure.
SWOT Analysis
Strengths
Leading market position in semiconductor manufacturing and inspection technologies.
Strong revenue growth and profitability metrics amidst industry expansion.
Robust cash flows enabling significant reinvestment in R&D and shareholder returns.
Weaknesses
Dependence on cyclical semiconductor demand can lead to revenue volatility.