KLA Corporation (KLA.DE) Q2 2025 Earnings Report

KLA Corporation delivered a solid QQ2 2025 performance, underscoring its position as a leading supplier of process control and yield management solutions for the semiconductor industry. Revenue reached approximately $3.08 billion in the quarter, up 23.7% year-over-year and 8.3% quarter-over-quarter, supported by robust demand in wafer fabrication and continued mix-shift toward higher-value analytics and metrology offerings. Gross margin remained resilient at ~60.3%, and operating margin held at ~40.4%, reflecting strong operating leverage and disciplined cost management. Net income of ~$824.5 million produced an EPS of $6.18 (diluted $6.13), driven by meaningful operating income and favorable tax treatment. Free cash flow was ~$757 million for the period, with operating cash flow of ~$849.5 million, highlighting KLA’s ability to convert earnings into meaningful liquidity and shareholder-friendly capital allocation activity.

The quarter benefited from sustained WFE (wafer fab equipment) demand, healthy utilization of installed bases, and continued software-enabled revenue opportunities. Management commentary (where available) reinforced confidence in secular demand drivers such as process control, yield optimization, and expanded use of inspection/metrology across multiple node transitions. At the same time, the balance sheet shows a strong liquidity position, though leverage remains elevated due to a sizable debt load, which the company is servicing with robust cash generation. Investors should monitor supply-chain dynamics, cyclical cadence of semiconductor capex, and ongoing capital allocation decisions (buybacks and dividends) as key indicators of medium-term trajectory.

Overall, QQ2 2025 positions KLA favorably within the semiconductor equipment landscape, offering an attractive mix of high gross margins, strong profitability, and substantial free cash flow that supports deleveraging potential and shareholder returns, even as the market remains cyclically sensitive.