AI Takeaway
KLAC delivered strong Q2 FY2026 results with revenue up 7.2% YoY to $3.30B and net income surging 39.0% YoY to $1.15B, driven by robust margin expansion and disciplined cost control despite a modest rise in operating expenses.
Revenue
$3.3B
++7.16% YoY
EPS (Basic)
$8.73
++41.26% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-Q filing
Revenue increased 7.2% YoY to $3.297B from $3.077B, indicating continued demand for KLAC's process control and yield management systems amid semiconductor capacity investments.
Source: 10-Q Income Statement, Q2 FY2026
Net income rose 39.0% YoY to $1.146B while diluted EPS grew 40.9% to $8.68, suggesting margin improvement and operating leverage beyond top-line growth alone.
Source: 10-Q Income Statement, Q2 FY2026
Cost of revenue grew only 4.1% YoY versus 7.2% revenue growth, implying gross margin improvement and efficient production scaling.
Source: 10-Q Income Statement, Q2 FY2026
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Upgrade to unlockDebt to equity ratio stands at 2.06x with long-term debt of $5.886B against stockholders' equity of $5.466B, indicating a leveraged capital structure that could constrain financial flexibility in a downturn.
Source: 10-Q Balance Sheet, Q2 FY2026
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Upgrade to unlockReported EPS of $0.89 versus the $0.90 analyst consensus — a -1.4% miss for Q2 FY2026.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $3.3B | $3.08B | +7.16% |
Cost of Revenue | $1.27B | $1.22B | +4.07% |
Net Income | $1.15B | $824.53M | +38.95% |
EPS (Basic) | $8.73 | $6.18 | +41.26% |
EPS (Diluted) | $8.68 | $6.16 | +40.91% |
R&D Expense | $383.87M | $346.16M | +10.90% |
SG&A Expense | $279.92M | $267.08M | +4.81% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.72B | $15B | +11.46% |
Current Assets | $11.26B | $9.77B | +15.26% |
Total Liabilities | $11.25B | $11.42B | -1.42% |
Current Liabilities | $3.98B | $4.14B | -3.76% |
Stockholders' Equity | $5.47B | $3.58B | +52.48% |
Cash & Equivalents | $2.45B | $1.84B | +33.39% |
Long-Term Debt | $5.89B | $5.88B | +0.06% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash FlowYTD | $2.53B | $1.84B | +37.10% |
Investing Cash FlowYTD | $-522.67M | $442.67M | -218.07% |
Financing Cash FlowYTD | $-1.63B | $-2.42B | +32.69% |
Share BuybacksYTD | $1.09B | $1.22B | -10.24% |
D&AYTD | $196.28M | $199.75M | -1.73% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Net Margin | 34.7% | — | — |
ROE | 21.0% | — | — |
ROA | 6.9% | — | — |
Current Ratio | $2.828 | — | — |
Debt to Equity | $2.059 | — | — |
Other companies in Semiconductor Materials & Equipment
The filing does not provide analyst consensus estimates, so a direct beat/miss comparison cannot be confirmed from this data. However, KLAC reported strong YoY growth with revenue up 7.2% to $3.297B and diluted EPS up 40.9% to $8.68, reflecting solid operational performance.
KLAC's revenue grew 7.2% YoY, from $3.077B to $3.297B, driven by continued demand for its semiconductor process control and yield management systems. Growth outpaced cost of revenue increase of 4.1%, supporting margin expansion.
KLAC reported net income of $1.146B, up 39.0% YoY from $824.5M, with diluted EPS of $8.68, up 40.9% from $6.16 in the prior-year period. This growth was aided by both higher profitability and share buybacks reducing share count.
KLAC shows strong liquidity with a current ratio of 2.83x and cash & equivalents of $2.452B, alongside a leveraged balance sheet reflected in a debt-to-equity ratio of 2.06x. Stockholders' equity grew 52.5% YoY to $5.466B, indicating improving balance sheet strength despite continued debt levels.
Key risks include a leveraged capital structure with $5.886B in long-term debt against $5.466B in equity, and exposure to semiconductor capital equipment cyclicality which could affect future revenue if fab investment slows. Additionally, R&D expense growth of 10.9% YoY outpaced revenue growth, which could pressure margins if not matched by future revenue acceleration.