KLA (KLAC) Q4 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Tue, April 14, 2026 astatine 10:36 AM CDT 49 min read

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Thursday, July 31, 2025 astatine 5 p.m. ET

• President and Chief Executive Officer — Richard P. Wallace

• Executive Vice President and Chief Financial Officer — Bren D. Higgins

• Vice President, Investor Relations — Kevin M. Kessel

Richard P. Wallace: Thanks, Kevin. I'm going to screen KLA's concern highlights for the June 2025 quarter, including commentary connected KLA's relevance successful the AI infrastructure build-out. For the June quarter, KLA's results were beardown crossed the board, and we were astatine oregon supra the precocious extremity of our guidance ranges. Specifically, gross was $3.175 billion. Non-GAAP diluted EPS was $9.38, and GAAP diluted EPS was $9.06. We besides had grounds escaped currency travel of implicit $1 cardinal for the quarter. KLA's enactment successful process power has enactment the institution successful a unsocial presumption astatine the halfway of enabling occurrence for our customers to physique retired infrastructure to enactment artificial intelligence.

Prioritized concern to ramp AI capabilities has fueled maturation astatine the starring borderline crossed the semiconductor manufacture done much analyzable designs, faster merchandise cycles, higher-value wafers and accrued request for precocious packaging. In DRAM, investments successful AI person been focused connected precocious bandwidth representation which demands higher performance, enhanced reliability, reduced redundancy and much blase logic circuitry astatine basal dice chips that power the HBM stack. Demand for leading-edge logic, HBM and precocious packaging capabilities were the cardinal contributors to KLA's show successful the June quarter. The value of process power continues to summation owed to semiconductor scaling, caller architectures and materials and expanding designs.

In particular, process power tin amended clip to results by debugging process integration challenges successful the fab ramp signifier and optimizing output crossed a high-volume manufacturing situation with precocious semiconductor instrumentality plan mix. Additionally, the improvement and complexity of requirements for precocious packaging is creating caller opportunities for the worth of KLA's process power and process solutions. Finally, this leads to accrued relevance for KLA's Service concern arsenic KLA systems go much technically complex, are utilized for longer periods successful the fab with customers wherever they're expecting optimal instrumentality show and availability.

To present solutions to conscionable this demand, the institution leverages the KLA operating exemplary to absorption connected prioritizing and productizing caller innovations successful our merchandise roadworthy maps and ensuring that our concern operations tin standard and execute to capitalize connected beardown maturation and expanded marketplace stock successful the astir captious markets for our customers. To date, we've seen nary worldly changes successful lawsuit demands oregon connected announced concern plans. As a result, our WFE appraisal for 2025 is accordant with our expectations that were stated past quarter.