Executive Summary
KLA Corporation delivered a solid QQ1 2025 performance, led by a substantial rise in revenue and meaningful margin expansion. Revenue reached $2.8415 billion, up 18.6% year over year and 10.7% quarter over quarter, while gross margin expanded to 59.6% and operating margin to 39.4%. Net income of $0.946 billion and earnings per share (diluted) of $7.01–$7.05 underscore durable profitability in a capital-intensive, cyclical end-market. Free cash flow amounted to $934.8 million, supported by operating cash flow of $995.2 million and disciplined capital expenditure (capex) of $60.4 million. The company returned capital to shareholders via share repurchases (~$567.4 million) and dividends (~$198.1 million), highlighting a constructive capital allocation framework.
Key Performance Indicators
Key Insights
Revenue: $2.8415B; YoY growth 18.6%; QoQ growth 10.7%. Gross Profit: $1.6941B; Gross Margin 59.6%. Operating Income: $1.1199B; Operating Margin 39.4%. Net Income: $0.9459B; Net Margin 33.3%. EPS (GAAP): $7.05; Diluted EPS: $7.01. Free Cash Flow: $0.9348B; Operating Cash Flow: $0.9952B; Capex: $0.0604B. Cash & investments: cash and short-term investments $4.6297B; Net Debt: $4.8489B; Total Assets: $15.6817B; Equity: $3.5597B. Liquidity ratios reflect solid coverage (Current Ratio 2.13, Quick ...
Financial Highlights
Revenue: $2.8415B; YoY growth 18.6%; QoQ growth 10.7%. Gross Profit: $1.6941B; Gross Margin 59.6%. Operating Income: $1.1199B; Operating Margin 39.4%. Net Income: $0.9459B; Net Margin 33.3%. EPS (GAAP): $7.05; Diluted EPS: $7.01. Free Cash Flow: $0.9348B; Operating Cash Flow: $0.9952B; Capex: $0.0604B. Cash & investments: cash and short-term investments $4.6297B; Net Debt: $4.8489B; Total Assets: $15.6817B; Equity: $3.5597B. Liquidity ratios reflect solid coverage (Current Ratio 2.13, Quick 1.48, Cash Ratio 0.41).
Income Statement
| Metric |
Value |
YoY Change |
QoQ Change |
| Revenue |
2.84B |
18.55% |
10.73% |
| Gross Profit |
1.69B |
16.83% |
6.40% |
| Operating Income |
1.12B |
24.55% |
6.40% |
| Net Income |
945.85M |
27.58% |
13.08% |
| EPS |
7.05 |
29.83% |
13.34% |
Key Financial Ratios
operatingProfitMargin
39.4%
operatingCashFlowPerShare
$7.42
freeCashFlowPerShare
$6.97
dividendPayoutRatio
20.9%
Management Commentary
Earnings call transcript data not provided in the input. No management quotes or themes can be cited from the transcript. Note: The analysis below references the disclosed financials and ratio trends; where transcript-driven guidance would normally inform forward-looking assumptions, the absence of the transcript data is acknowledged.
Forward Guidance
No explicit forward-looking targets or quantitative guidance were included in the provided data. Given the semiconductor equipment cycle and broader AI/data-center capex secular, investors should monitor: (1) equipment demand intensity from leading logic/driven customers and memory investments, (2) capacity expansions and timing at KLA’s key customers, (3) product mix shifts toward advanced metrology and process control, (4) currency movements and supply-chain normalization, and (5) capital allocation decisions (buybacks vs. investments in R&D and capacity). Absent formal guidance, the QQ1 2025 results imply resilience in profitability and cash generation, with upside driven by sustained utilization of KLA’s installed base and services business.