KLA earnings: first quarter of fiscal 2027

KLA, which makes the machines chipmakers use to inspect and measure chips as they are made, had a fast-growing September quarter, the first of its fiscal 2027. Sales rose about 29% on a year ago and profit rose faster still. Most of that profit turned into cash, and KLA expects another clear step up in the December quarter, driven by spending tied to AI. ¹

Against what analysts expected

Analysts' average forecast was $1.18 a share (Nasdaq's earnings calendar). KLA's standard profit per share was exactly $1.18, in line, while its own adjusted figure, which leaves out acquisition-related charges and some tax items, was $1.22, about 3% above, so whether the quarter came in above the forecast depends on which of the two measures you use. ¹²

The strong points

• Sales reached $4,136 million, up about 29% on a year ago, and most of the growth came from selling new machines rather than from servicing old ones. ¹
• Net income, the profit after everything, rose about 38% on a year ago to $1,549 million, faster than sales. ¹
• Free cash flow, the cash left after running the business and investing in it, was about $1.34 billion, a sharp rise on the quarter before. ¹

The weak points

• Stock piling up in inventory took about $434 million of cash, far more than in the quarter before or a year ago. ¹
• KLA paid only about 22% of its tax charge in cash this quarter, which made its cash figures look better than they will once the rest is paid. ¹

What the company expects

• KLA expects December-quarter sales of about $4.7 billion, give or take $200 million, about 13.5% more than in the quarter just reported. ¹
• It expects adjusted profit per share of about $1.44 in the December quarter, roughly 18% more than the $1.22 just reported. ¹

Our verdict on the quarter

A strong report. Sales up about 29% and profit up about 38% on a year ago, with most of it turned into cash, plus a December-quarter forecast of another clear step up, make this a strong report; the release does not say whether that forecast is higher than before, and a big build-up of inventory is the one soft spot.

The results as published

• The results release itself
• The filing it came with (SEC)

Notes

1. KLA's results release, 28 October 2026: sec.gov. ↩
2. Nasdaq's earnings calendar, 29 October 2026. ↩