KLA Corporation (KLAC) delivered a solid QQ1 2025 performance, marking another quarter of sequential revenue growth and notable profitability strength driven by demand at the leading edge of semiconductor manufacturing. Reported quarterly revenue of $2.84 billion and non-GAAP diluted EPS of $7.33, with GAAP EPS of $7.01, both above guidance midpoints. The company continues to benefit from AI-enabled product enhancements and an expanding service business, while maintaining a track record of strong cash generation and capital returns. Management reiterated a constructive view for calendar 2025, anchored by continued growth in leading-edge foundry, logic, and memory investments, with manufacturing demand supported by AI chips and advanced packaging, even as China-related demand digests. December quarter guidance implies continued revenue progression and stable margins, underscoring KLA’s resilient operating model and market leadership in process control for semiconductor manufacturing.
Key drivers include AI adoption and increased process control intensity at the most advanced nodes (2nm/3nm transitions, reticle and metrology expansion, and advanced packaging). The September quarter cash flow and free cash flow remained robust (OCF $995M; FCF $935M), enabling another round of capital returns (quarterly share repurchases of $567M and $198M in dividends; 12-month total returns of $2.6B). The results reinforce KLA’s thesis that the rising importance of process control—and the cost of insufficient inspection at critical steps—will sustain long-term growth and industry outperformance.