# EDGAR Filing Document

**Accession Number:** 0000319201
**File Stem:** 0000319201-25-000031
**Filing Date:** 2025-10
**Character Count:** 28883
**Document Hash:** 61d934aa437792e0f54a47d1ad5a273c
**Contains OCR:** False
**Source Format:** 

## Filing Content

## Filing Summary
**0000319201-25-000031.hdr.sgml**: 20251029

**ACCESSION NUMBER**: 0000319201-25-000031

**CONFORMED SUBMISSION TYPE**: 8-K

**PUBLIC DOCUMENT COUNT**: 13

**CONFORMED PERIOD OF REPORT**: 20251029

**ITEM INFORMATION**: Results of Operations and Financial Condition

**ITEM INFORMATION**: Financial Statements and Exhibits

**FILED AS OF DATE**: 20251029

**DATE AS OF CHANGE**: 20251029

**FILER**: 

**COMPANY DATA:**
- **COMPANY CONFORMED NAME:** KLA CORP
- **CENTRAL INDEX KEY:** 0000319201
- **STANDARD INDUSTRIAL CLASSIFICATION:** OPTICAL INSTRUMENTS & LENSES [3827]
- **ORGANIZATION NAME:** 08 Industrial Applications and Services
- **EIN:** 042564110
- **STATE OF INCORPORATION:** DE
- **FISCAL YEAR END:** 0630

**FILING VALUES:**
- **FORM TYPE:** 8-K
- **SEC ACT:** 1934 Act
- **SEC FILE NUMBER:** 000-09992
- **FILM NUMBER:** 251430093

**BUSINESS ADDRESS:**
- **STREET 1:** ONE TECHNOLOGY DRIVE
- **CITY:** MILPITAS
- **STATE:** CA
- **ZIP:** 95035
- **BUSINESS PHONE:** 4088753000

**MAIL ADDRESS:**
- **STREET 1:** ONE TECHNOLOGY DRIVE
- **CITY:** MILPITAS
- **STATE:** CA
- **ZIP:** 95035

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KLA TENCOR CORP
- **DATE OF NAME CHANGE:** 19970505

**FORMER COMPANY:**
- **FORMER CONFORMED NAME:** KLA INSTRUMENTS CORP
- **DATE OF NAME CHANGE:** 19920703

?xml version='1.0' encoding='ASCII'? klac-20251029

**UNITED STATES**

**SECURITIES AND EXCHANGE COMMISSION**

**Washington, D.C. 20549**

---

| | |
|:---|:---|
| **FORM** | **8-K** |

---

**CURRENT REPORT**

**Pursuant to Section 13 or 15(d) of The**

**Securities Exchange Act of 1934**

Date of Report (Date of earliest event reported): October 29, 2025

---

| | | | | |
|:---|:---|:---|:---|:---|
| **KLA CORPORATION** | **KLA CORPORATION** | **KLA CORPORATION** | **KLA CORPORATION** | **KLA CORPORATION** |
| (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) | (Exact name of registrant as specified in its charter) |
| Delaware | 000-09992 | 000-09992 | 04-2564110 | 04-2564110 |
| (State or other jurisdiction of incorporation) | (Commission File Number) | (Commission File Number) | (I.R.S. Employer Identification No.) | (I.R.S. Employer Identification No.) |
| One Technology Drive | Milpitas | California |  | 95035 |
| (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Address of principal executive offices) | (Zip Code) |
| Registrant's telephone number, including area code: | Registrant's telephone number, including area code: | (408) 875-3000 |  |  |
| (Former name or former address, if changed since last report) | (Former name or former address, if changed since last report) | (Former name or former address, if changed since last report) | (Former name or former address, if changed since last report) | (Former name or former address, if changed since last report) |

---

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

---

| | | |
|:---|:---|:---|
| **<u>Title of each class</u>** | **<u>Trading Symbol(s)</u>** | **<u>Name of each exchange on which registered</u>** |
| Common Stock, $0.001 par value per share | KLAC | The Nasdaq Stock Market, LLC |
|  |  | The Nasdaq Global Select Market |

---

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company ☐

---

| | |
|:---|:---|
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | |
| If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. | ☐ |

---

------

---

| | |
|:---|:---|
| **Item 2.02** | **Results of Operations and Financial Condition.** |

---

On October 29, 2025, KLA Corporation (the "Company") issued a press release announcing selected financial and operating results for its first quarter of fiscal year 2026. A copy of the press release is furnished as Exhibit 99.1 to this Current Report on Form 8-K.

The information in Item 2.02 of this Current Report on Form 8-K and the exhibit attached hereto shall not be deemed "filed" for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended, or the Exchange Act, regardless of any general incorporation language in such filing.

---

| | |
|:---|:---|
| **Item 9.01** | **Financial Statements and Exhibits.** |

---

&nbsp;&nbsp;&nbsp;&nbsp;(d)Exhibits

---

| | |
|:---|:---|
| **Exhibit No.** | **Description** |
| <u>[99.1](exhibit991earningsrelease0.htm)</u> | <u>[Press release issued](exhibit991earningsrelease0.htm)[October 29](exhibit991earningsrelease0.htm)[, 2025](exhibit991earningsrelease0.htm)</u> |
| 104 | Cover Page Interactive Data File (formatted as inline XBRL and contained in Exhibit 101) |

---

------

**SIGNATURES**

Pursuant to the requirements of the Securities Exchange Act of 1934 the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

---

| | | |
|:---|:---|:---|
| | **KLA CORPORATION** | **KLA CORPORATION** |
| Date: October 29, 2025 | By: | /s/ BREN D. HIGGINS |
|  | Name: | Bren D. Higgins |
|  | Title: | Executive Vice President and Chief Financial Officer |

---

## Ex-99

**Exhibit 99.1**

**FOR IMMEDIATE RELEASE**

---

| | |
|:---|:---|
| **Investor Relations:** | **Media Relations:** |
| Kevin Kessel, CFA | Mike Dulin |
| Vice President, Investor Relations | Corporate Communications |
| (408) 875-6627 | <u>michael.dulin@kla.com</u> |
| <u>kevin.kessel@kla.com</u> |  |

---

**KLA Corporation Reports Fiscal 2026 First Quarter Results**

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenues were $3.21 billion, above the midpoint of the guidance range of $3.15 billion +/- $150 million;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP diluted EPS was $8.47 and non-GAAP diluted EPS was $8.81, both above the midpoints of the respective guidance ranges;

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Cash flow from operating activities for the quarter and last twelve months were $1.16 billion and $4.25 billion, respectively, and free cash flow was $1.07 billion and $3.88 billion, respectively; and

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Capital returns for the quarter and last twelve months were $799.1 million and $3.09 billion, respectively.

MILPITAS, Calif., October 29, 2025 - <u>KLA Corporation</u> (NASDAQ: KLAC) today announced financial and operating results for its first quarter of fiscal year 2026, which ended on September 30, 2025, and reported GAAP net income of $1.12 billion and GAAP net income per diluted share of $8.47 on revenues of $3.21 billion.

"KLA produced a strong all-around September quarter performance above the guidance midpoints. These results reflect double-digit year-over-year revenue and EPS growth, and KLA is on pace for solid relative revenue growth compared to our industry in calendar 2025," said Rick Wallace, president and CEO of KLA Corporation. "The AI infrastructure buildout represents a profound change in high performance computing that will positively affect a wide range of industries over the coming years. KLA is in a unique position to benefit from this buildout with an industry-leading portfolio of solutions directly addressing the biggest challenges for AI compute in the leading-edge foundry/logic, memory, and advanced packaging markets."

---

| | | | |
|:---|:---|:---|:---|
| **GAAP Results** | **GAAP Results** | **GAAP Results** | **GAAP Results** |
| | **Q1 FY 2026** | **Q4 FY 2025** | **Q1 FY 2025** |
| Total Revenues | $3,210 million | $3,175 million | $2,842 million |
| Net Income | $1,121 million | $1,203 million | $946 million |
| Net Income per Diluted Share | $8.47 | $9.06 | $7.01 |
| **Non-GAAP Results** | **Non-GAAP Results** | **Non-GAAP Results** | **Non-GAAP Results** |
|  | **Q1 FY 2026** | **Q4 FY 2025** | **Q1 FY 2025** |
| Net Income | $1,167 million | $1,244 million | $988 million |
| Net Income per Diluted Share | $8.81 | $9.38 | $7.33 |

---

A reconciliation between GAAP operating results and non-GAAP operating results is provided following the financial statements included in this release. KLA will discuss the results for its fiscal year 2026 first quarter, along with its outlook, on a conference call today beginning at 2:00 p.m. Pacific Time. A webcast of the call will be available at: *<u>www.kla.com</u>*.

**Second Quarter Fiscal 2026 Guidance**

The following details our guidance for the second quarter of fiscal 2026 ending in December:

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Total revenues are expected to be in a range of $3.225 billion +/- $150 million

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP gross margin is expected to be in a range of 60.8% +/- 1.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP gross margin is expected to be in a range of 62.0% +/- 1.0%

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• GAAP diluted EPS is expected to be in a range of $8.46 +/- $0.78

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;• Non-GAAP diluted EPS is expected to be in a range of $8.70 +/- $0.78

For additional details and assumptions underlying our guidance metrics, please see the company's published Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic on the KLA investor relations website *<u>(ir.kla.com)</u>*. Such Letter to Shareholders, Earnings Slide Presentation and Earnings Infographic are not incorporated by reference into this

------

earnings release.

**About KLA:**

KLA Corporation ("KLA") develops industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers and reticles, integrated circuits, packaging and printed circuit boards. In close collaboration with leading customers across the globe, our expert teams of physicists, engineers, data scientists and problem-solvers design solutions that move the world forward. Investors and others should note that KLA announces material financial information including SEC filings, press releases, public earnings calls and conference webcasts using an investor relations website (*<u>ir.kla.com</u>*). Additional information may be found at: *<u>www.kla.com</u>*.

**Note Regarding Forward-Looking Statements:**

------

---

| | | |
|:---|:---|:---|
| **KLA Corporation** | | |
| **Condensed Consolidated Unaudited Balance Sheets** | | |
| ***<u>(In thousands)</u>*** |<br>**September 30, 2025** |<br>**June 30, 2025** |
| **ASSETS** | | |
| Current assets: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Cash and cash equivalents | $1946211 | $2078908 |
| &nbsp;&nbsp;&nbsp;&nbsp;Marketable securities | 2737380 | 2415715 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable, net | 2277755 | 2263915 |
| &nbsp;&nbsp;&nbsp;&nbsp;Inventories | 3297368 | 3212149 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current assets | 642446 | 728102 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current assets | 10901160 | 10698789 |
| Land, property and equipment, net | 1301829 | 1252775 |
| Goodwill, net | 1791022 | 1792193 |
| Deferred income taxes | 1131211 | 1105770 |
| Purchased intangible assets, net | 397366 | 444785 |
| Other non-current assets | 795386 | 773614 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total assets | $16317974 | $16067926 |
| **LIABILITIES AND STOCKHOLDERS' EQUITY** | **LIABILITIES AND STOCKHOLDERS' EQUITY** |  |
| Current liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | $429836 | $458509 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred system revenue | 818807 | 816834 |
| &nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue | 604752 | 548011 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other current liabilities | 2196575 | 2262441 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total current liabilities | 4049970 | 4085795 |
| Long-term debt | 5885193 | 5884257 |
| Deferred tax liabilities | 464519 | 446945 |
| Deferred service revenue | 287133 | 348844 |
| Other non-current liabilities | 646088 | 609632 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities | 11332903 | 11375473 |
| Stockholders' equity: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Common stock and capital in excess of par value | 2489121 | 2511922 |
| &nbsp;&nbsp;&nbsp;&nbsp;Retained earnings | 2495279 | 2179330 |
| &nbsp;&nbsp;&nbsp;&nbsp;Accumulated other comprehensive income | 671 | 1201 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total stockholders' equity | 4985071 | 4692453 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total liabilities and stockholders' equity | $16317974 | $16067926 |

---

------

---

| | | |
|:---|:---|:---|
| **KLA Corporation** | | |
| **Condensed Consolidated Unaudited Statements of Operations** | **Condensed Consolidated Unaudited Statements of Operations** | |
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| ***<u>(In thousands, except per share amounts)</u>*** | **2025** | **2024** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Product | $2465006 | $2197389 |
| &nbsp;&nbsp;&nbsp;&nbsp;Service | 744690 | 644152 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Total revenues | 3209696 | 2841541 |
| Costs and expenses: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Costs of revenues | 1243070 | 1147431 |
| &nbsp;&nbsp;&nbsp;&nbsp;Research and development | 360461 | 323145 |
| &nbsp;&nbsp;&nbsp;&nbsp;Selling, general and administrative | 268988 | 251042 |
| &nbsp;&nbsp;&nbsp;&nbsp;Interest expense | 71075 | 82171 |
| &nbsp;&nbsp;&nbsp;&nbsp;Other expense (income), net | (43374) | (40935) |
| Income before income taxes | 1309476 | 1078687 |
| Provision for income taxes | 188436 | 132836 |
| Net income | $1121040 | $945851 |
| Net income per share |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | $8.51 | $7.05 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | $8.47 | $7.01 |
| Weighted-average number of shares: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;Basic | 131757 | 134134 |
| &nbsp;&nbsp;&nbsp;&nbsp;Diluted | 132381 | 134858 |

---

------

---

| | | |
|:---|:---|:---|
| **KLA Corporation** | | |
| **Condensed Consolidated Unaudited Statements of Cash Flows** | | |
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| ***<u>(In thousands)</u>*** | **2025** | **2024** |
| Cash flows from operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;Net income | $1121040 | $945851 |
| &nbsp;&nbsp;&nbsp;Adjustments to reconcile net income to net cash provided by operating activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Depreciation and amortization | 97016 | 95823 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unrealized foreign exchange loss and other | 12078 | 7718 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Stock-based compensation expense | 70182 | 61700 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred income taxes | (10615) | (81682) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Changes in assets and liabilities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts receivable | (12575) | (91660) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Inventories | (95738) | (59326) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other assets | 50921 | 152641 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accounts payable | (23680) | (12463) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred system revenue | 1974 | (108648) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Deferred service revenue | (4970) | 35863 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Other liabilities | (44042) | 49421 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash provided by operating activities | 1161591 | 995238 |
| Cash flows from investing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (95894) | (60393) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from capital-related government assistance | 1541 |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of available-for-sale and equity securities | (949871) | (837935) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from maturity and sale of available-for-sale securities | 632795 | 727247 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Purchases of trading securities | (156864) | (17581) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Proceeds from sale of trading securities | 158305 | 17623 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in investing activities | (409988) | (171039) |
| Cash flows from financing activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of debt issuance costs | (1602) |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Common stock repurchases | (545067) | (567383) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Payment of dividends to stockholders | (254008) | (198079) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Tax withholding payments related to vested and released restricted stock units | (81122) | (72246) |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Net cash used in financing activities | (881799) | (837708) |
| Effect of exchange rate changes on cash and cash equivalents | (2501) | 13582 |
| Net increase (decrease) in cash and cash equivalents | (132697) | 73 |
| Cash and cash equivalents at beginning of period | 2078908 | 1977129 |
| Cash and cash equivalents at end of period | $1946211 | $1977202 |
| Supplemental cash flow disclosures: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income taxes paid, net | $119049 | $96395 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Interest paid, net of capitalized interest | $131494 | $131126 |
| Non-cash activities: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Dividends payable - financing activities | $2263 | $2009 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Unsettled common stock repurchase - financing activities | $20207 | $5499 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Accrued purchase of land, property and equipment - investing activities | $32758 | $13849 |

---

------

**KLA Corporation**

**Segment Information (Unaudited)**

The following is a summary of results for each of our three reportable segments and reconciliations to total revenues for the indicated periods:

---

| | | |
|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** |
| ***(<u>In thousands</u>)*** | **2025** | **2024** |
| Revenues: |  |  |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Semiconductor Process Control | $2899392 | $2575151 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Specialty Semiconductor Process | 119755 | 128334 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;PCB and Component Inspection | 189488 | 137983 |
| Total revenues for reportable segments | 3208635 | 2841468 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Effects of changes in foreign currency exchange rates | 1061 | 73 |
| Total revenues | $3209696 | $2841541 |

---

**KLA Corporation**

**Condensed Consolidated Unaudited Supplemental Information**

**<u>Reconciliation of GAAP Net Income to Non-GAAP Net Income</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | | **Three Months Ended** | **Three Months Ended** | **Three Months Ended** |
| ***<u>(In thousands, except per share amounts)</u>*** | | **September 30,<br>2025** | **June 30,<br>2025** | **September 30,<br>2024** |
| GAAP net income |  | $1121040 | $1202849 | $945851 |
| <u>Adjustments to reconcile GAAP net income to non-GAAP net income:</u> |  |  |  |  |
| Acquisition-related charges | a | 49026 | 50677 | 56694 |
| Restructuring, severance and other charges | b |  | 2133 | 2862 |
| Income tax effect of non-GAAP adjustments | c | (18348) | (18559) | (19486) |
| Discrete tax items | d | 15087 | 7322 | 2233 |
| Non-GAAP net income |  | $1166805 | $1244422 | $988154 |
| GAAP net income per diluted share |  | $8.47 | $9.06 | $7.01 |
| Non-GAAP net income per diluted share |  | $8.81 | $9.38 | $7.33 |
| Shares used in diluted net income per share calculation |  | 132381 | 132734 | 134858 |

---

**<u>Pre-tax Impact of GAAP to Non-GAAP Adjustments Included in Condensed Consolidated Unaudited Statements of Operations</u>**

---

| | | | |
|:---|:---|:---|:---|
| ***<u>(In thousands)</u>*** | **Acquisition - Related Charges** | **Restructuring, Severance and Other Charges** | **Total Pre-tax GAAP to Non-GAAP Adjustments** |
| **<u>Three Months Ended September 30, 2025</u>** | | | |
| Costs of revenues | $38053 | $— | $38053 |
| Selling, general and administrative | 10973 |  | 10973 |
| Total in three months ended September 30, 2025 | $49026 | $— | $49026 |
| **<u>Three Months Ended June 30, 2025</u>** |  |  |  |
| Costs of revenues | $39024 | $1233 | $40257 |
| Research and development |  | (3) | (3) |
| Selling, general and administrative | 11653 | 903 | 12556 |
| Total in three months ended June 30, 2025 | $50677 | $2133 | $52810 |
| **<u>Three Months Ended September 30, 2024</u>** |  |  |  |
| Costs of revenues | $44090 | $901 | $44991 |
| Research and development |  | 1087 | 1087 |
| Selling, general and administrative | 12604 | 874 | 13478 |
| Total in three months ended September 30, 2024 | $56694 | $2862 | $59556 |

---

------

**<u>Reconciliation of Net Cash Provided by Operating Activities (GAAP) to Free Cash Flow</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Twelve Months Ended September 30,** | **Twelve Months Ended September 30,** |
| ***<u>(In thousands)</u>*** | **2025** | **2024** | **2025** | **2024** |
| Net cash provided by operating activities | $1161591 | $995238 | $4248256 | $3420073 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Capital expenditures | (95894) | (60393) | (370760) | (269732) |
| Free cash flow | $1065697 | $934845 | $3877496 | $3150341 |

---

**<u>Capital Returns Calculation</u>**

---

| | | | | |
|:---|:---|:---|:---|:---|
| | **Three Months Ended September 30,** | **Three Months Ended September 30,** | **Twelve Months Ended September 30,** | **Twelve Months Ended September 30,** |
| ***<u>(In thousands)</u>*** | **2025** | **2024** | **2025** | **2024** |
| Payments of dividends to stockholders | $254008 | $198079 | $960523 | $789613 |
| Common stock repurchases | 545067 | 567383 | 2127630 | 1847717 |
| Capital returns | $799075 | $765462 | $3088153 | $2637330 |

---

**Second Quarter Fiscal 2026 Guidance**

**<u>Reconciliation of GAAP Diluted EPS to Non-GAAP Diluted EPS</u>**

---

| | | | |
|:---|:---|:---|:---|
| | | **Three Months Ending December 31, 2025** | **Three Months Ending December 31, 2025** |
| ***(<u>In millions, except per share amounts</u>)*** | | **Low** | **High** |
| GAAP net income per diluted share |  | $7.68 | $9.24 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related charges | a | 0.38 | 0.38 |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Income tax effect of non-GAAP adjustments | c | (0.14) | (0.14) |
| Non-GAAP net income per diluted share |  | $7.92 | $9.48 |
| Shares used in net income per diluted share calculation |  | 131.9 | 131.9 |

---

**<u>Reconciliation of GAAP Gross Margin to Non-GAAP Gross Margin</u>**

---

| | | | |
|:---|:---|:---|:---|
| | | **Three Months Ending December 31, 2025** | **Three Months Ending December 31, 2025** |
| | | **Low** | **High** |
| GAAP gross margin |  | 59.8% | 61.8% |
| &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Acquisition-related charges | a | 1.2% | 1.2% |
| Non-GAAP gross margin |  | 61.0% | 63.0% |

---

The non-GAAP and supplemental information provided in this press release is a supplement to, and not a substitute for, KLA's financial results presented in accordance with United States GAAP.

To supplement our Condensed Consolidated Financial Statements presented in accordance with GAAP, we provide certain non-GAAP financial information, which is adjusted from results based on GAAP to exclude certain gains, costs and expenses, as well as other supplemental information. The non-GAAP and supplemental information is provided to enhance the user's overall understanding of our operating performance and our prospects in the future. Specifically, we believe that the non-GAAP information, including non-GAAP net income, non-GAAP net income per diluted share, non-GAAP gross margin and free cash flow, provides useful measures to both management and investors regarding financial and business trends relating to our financial performance by excluding certain costs and expenses that we believe are not indicative of our core operating results to help investors compare our operating performances with our results in prior periods as well as with the performance of other companies. The non-GAAP information is among the budgeting and planning tools that management uses for future forecasting. However, because there are no standardized or generally accepted definitions for most non-GAAP financial metrics, definitions of non-GAAP financial metrics are inherently subject to significant discretion (for example, determining which costs and expenses to exclude when calculating such a metric). As a result, non-GAAP financial metrics may be defined very differently from company to company, or even from period to period within the same company, which can potentially limit the usefulness of such information to an investor. The presentation of non-GAAP and supplemental information is not meant to be considered in isolation or as a substitute for results prepared and presented in accordance with United States GAAP. The following are descriptions of the adjustments made to reconcile GAAP net income to non-GAAP net income:

------

a.Acquisition-related charges primarily include amortization of intangible assets. Although we exclude the effect of amortization of all acquired intangible assets from these non-GAAP financial measures, management believes that it is important for investors to understand that such intangible assets were recorded as part of purchase price accounting arising from acquisitions, and such amortization of intangible assets related to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Investors should note that the use of these intangible assets contributed to our revenues earned during the periods presented and are expected to contribute to our future period revenues as well.

b.Restructuring, severance and other charges primarily include costs associated with employee severance.

c.Income tax effect of non-GAAP adjustments includes the income tax effects of the excluded items noted above.

d.Discrete tax items in the three months ended September 30, 2025 include the recognition of a deferred tax liability for withholding taxes on future remittance of previously taxed income as a result of new tax legislation. Discrete tax items in the three months ended June 30, 2025 include the recognition of a net deferred tax liability on foreign currency gains/losses resulting from new tax legislation and a tax benefit from an internal restructuring. Discrete tax items in all periods presented include a tax impact relating to the amortization of tax benefits from internal restructuring or similar tax benefits recorded in other periods.