Have you looked into how KLA (KLAC) performed internationally during the quarter ending December 2025? Considering the widespread global presence of this maker of equipment for manufacturing semiconductors, examining the trends in international revenues is essential for assessing its financial resilience and prospects for growth.
In the current global economy, which is more interconnected than ever, a company's success in penetrating international markets is crucial for its financial health and growth journey. Investors must understand a company's dependence on overseas markets, as this offers a window into the company's earnings stability, its ability to benefit from varied economic cycles and its potential for long-term growth.
Participation in global economies acts as a defense against economic difficulties at home and a pathway to more rapidly developing economies. However, it also comes with the complexities of dealing with fluctuating currencies, geopolitical risks and different market dynamics.
While delving into KLAC's performance for the past quarter, we observed some fascinating trends in the revenue from its foreign segments that are commonly modeled and observed by analysts on Wall Street.
The company's total revenue for the quarter stood at $3.3 billion, increasing 7.2% year over year. Now, let's delve into KLAC's international revenue breakdown to gain insights into the significance of its operations beyond home turf.
A Closer Look at KLAC's Revenue Streams Abroad
Europe & Israel accounted for 4.9% of the company's total revenue during the quarter, translating to $161.17 million. Revenues from this region represented a surprise of +10.73%, with Wall Street analysts collectively expecting $145.56 million. When compared to the preceding quarter and the same quarter in the previous year, Europe & Israel contributed $150.98 million (4.7%) and $134.27 million (4.4%) to the total revenue, respectively.
Of the total revenue, $479.31 million came from Korea during the last fiscal quarter, accounting for 14.5%. This represented a surprise of -24.01% as analysts had expected the region to contribute $630.8 million to the total revenue. In comparison, the region contributed $299.37 million, or 9.3%, and $357.43 million, or 11.6%, to total revenue in the previous and year-ago quarters, respectively.
Taiwan generated $844.99 million in revenues for the company in the last quarter, constituting 25.6% of the total. This represented a surprise of +4.51% compared to the $808.53 million projected by Wall Street analysts. Comparatively, in the previous quarter, Taiwan accounted for $793.61 million (24.7%), and in the year-ago quarter, it contributed $881.21 million (28.6%) to the total revenue.
During the quarter, Japan contributed $229.05 million in revenue, making up 7% of the total revenue. When compared to the consensus estimate of $323.43 million, this meant a surprise of -29.18%. Looking back, Japan contributed $295.21 million, or 9.2%, in the previous quarter, and $228.61 million, or 7.4%, in the same quarter of the previous year.
China generated $994.89 million in revenues for the company in the last quarter, constituting 30.2% of the total. This represented a surprise of +7.93% compared to the $921.82 million projected by Wall Street analysts. Comparatively, in the previous quarter, China accounted for $1.27 billion (39.5%), and in the year-ago quarter, it contributed $1.09 billion (35.5%) to the total revenue.
Rest of Asia accounted for 5.9% of the company's total revenue during the quarter, translating to $193.5 million. Revenues from this region represented a surprise of +70.92%, with Wall Street analysts collectively expecting $113.21 million. When compared to the preceding quarter and the same quarter in the previous year, Rest of Asia contributed $105.47 million (3.3%) and $96.61 million (3.1%) to the total revenue, respectively.
Projected Revenues in Foreign Markets
It is projected by analysts on Wall Street that KLA will post revenues of $3.36 billion for the ongoing fiscal quarter, an increase of 9.7% from the year-ago quarter. The expected contributions from Europe & Israel, Korea, Taiwan, Japan, China and Rest of Asia to this revenue are 4.1%, 16.5%, 31.3%, 9.8%, 27.3%, and 4.1%, translating into $138.14 million, $554.19 million, $1.05 billion, $327.68 million, $916.41 million, and $138.14 million, respectively.
For the full year, the company is expected to generate $13.37 billion in total revenue, up 10% from the previous year. Revenues from Europe & Israel, Korea, Taiwan, Japan, China and Rest of Asia are expected to constitute 4.4% ($592.03 million), 15% ($2 billion)27.3% ($3.65 billion)9.5% ($1.27 billion)29.7% ($3.98 billion) and 3.6% ($478.71 million) of the total, respectively.
Wrapping Up
Relying on international markets for revenues, KLA faces both prospects and perils. Thus, tracking the company's international revenue trends is essential for accurately projecting its future trajectory.
In an environment where global interconnections and geopolitical skirmishes are intensifying, Wall Street analysts keep a keen eye on these trends, particularly for firms with overseas operations, to adjust their earnings predictions. Moreover, a range of other aspects, including how a company fares in its home country, significantly affects these projections.
We at Zacks strongly focus on the dynamic earnings forecast of companies, given that empirical studies have demonstrated its potent impact on the immediate price movement of stocks. Invariably, there's a positive relationship -- upward earnings predictions often result in an increase in stock prices.
Boasting a remarkable track record that's been externally verified, the Zacks Rank, our unique stock rating system, leverages changes in earnings projections to function as a reliable gauge for predicting short-term stock price movements.
At the moment, KLA has a Zacks Rank #1 (Strong Buy), signifying that it may outperform the overall market trend in the upcoming period. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
Exploring Recent Trends in Stock Price
The stock has declined by 2.8% over the past month compared to the 0.9% increase of the Zacks S&P 500 composite. Meanwhile, the Zacks Computer and Technology sector, which includes KLA,has decreased 0.3% during this time frame. Over the past three months, the company's shares have experienced a gain of 13.8% relative to the S&P 500's 1.2% increase. Throughout this period, the sector overall has witnessed a 2.3% decrease.
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KLA Corporation (KLAC): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).
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