KLA Corporation (NASDAQ: KLAC) has unveiled its financial results for the third quarter of fiscal year 2026, which concluded on March 31, 2026. The company posted a remarkable GAAP net income of $1.20 billion, translating to a net income per diluted share of $9.12, on total revenues of $3.415 billion. This performance not only exceeds the midpoint of the company's guidance but also reflects a significant year-over-year growth.

2. Key Financial Highlights

GAAP Financial Metrics

Total Revenues: $3,415 million, up from $3,297 million in Q2 FY 2026 and $3,063 million in Q3 FY 2025.

Net Income: $1,201 million, an increase from $1,146 million in the previous quarter and $1,088 million in the same quarter last year.

Net Income per Diluted Share: $9.12, compared to $8.68 in Q2 FY 2026 and $8.16 in Q3 FY 2025.

Non-GAAP Financial Metrics

Non-GAAP Net Income: $1,239 million, up from $1,168 million sequentially and $1,121 million year-over-year.

Non-GAAP Net Income per Diluted Share: $9.40, compared to $8.85 in Q2 FY 2026 and $8.41 in Q3 FY 2025.

3. Leadership Commentary

Rick Wallace, President and CEO of KLA Corporation, expressed confidence in the company’s strong performance and outlook, stating, “KLA delivered strong March quarter results exceeding the midpoint of our guidance ranges on both revenue and earnings per share. Our business momentum remains robust, and we are highly confident in our outlook for calendar year 2026.” He emphasized KLA's pivotal role in the AI ecosystem and the benefits from the global AI infrastructure buildout, particularly across sectors such as foundry/logic, memory, advanced packaging, and services.

4. Market Position and Shareholder Returns

KLA's market leadership was further solidified by third-party industry reports indicating continued market share momentum in process control. The company also announced significant capital return actions, including a 17th consecutive annual dividend increase and an additional $7 billion stock repurchase authorization. These moves underscore KLA's confidence in its capacity for durable value creation.

5. Fourth Quarter Fiscal 2026 Guidance

Looking ahead, KLA provided guidance for the fourth quarter of fiscal 2026, which ends in June. The company expects:

Total Revenues: Projected in a range of $3.575 billion +/- $200 million.

GAAP Gross Margin: Anticipated in a range of 60.72% +/- 1.00%.

Non-GAAP Gross Margin: Expected to be in a range of 61.75% +/- 1.00%.

GAAP Diluted EPS: Forecasted between $9.66 +/- $1.00.

Non-GAAP Diluted EPS: Expected in a range of $9.87 +/- $1.00.

6. Balance Sheet Strength

As of March 31, 2026, KLA reported total assets of $16.87 billion, an increase from $16.07 billion as of June 30, 2025. The company’s current assets reached $11.35 billion, while total liabilities were reported at $11.04 billion, reflecting a strong balance sheet position that supports ongoing growth initiatives.

7. Conclusion

KLA Corporation’s robust third-quarter performance, characterized by significant revenue growth and strong profitability metrics, underscores its pivotal role in the semiconductor and AI sectors. With a clear guidance for the upcoming quarter and continued commitment to shareholder returns, KLA appears well-positioned to capitalize on emerging opportunities in the technology landscape. Investors and stakeholders can anticipate further insights during KLA's upcoming conference call where these results and outlook will be discussed in greater detail.

Original press release