KLA Corporation (NASDAQ:KLAC) reported stronger-than-expected fiscal fourth-quarter results, but its shares fell more than 10% in pre-market trading on Wednesday after investors focused on a cautious near-term outlook and guidance that offered only limited upside.
The semiconductor equipment manufacturer posted earnings per share of $1.05 for the quarter, exceeding analysts’ expectations of $1.00. Revenue came in at $3.66 billion, ahead of the consensus forecast of $3.60 billion.
Annual Results Reflect Solid Financial Performance
For the fiscal year ended June 30, 2026, KLA generated GAAP net income of $4.83 billion, with GAAP diluted earnings per share of $3.66 on total revenue of $13.58 billion.
Despite the quarterly beat, analysts suggested the results were not enough to sustain the stock’s recent momentum.
Bernstein analyst Stacy Rasgon said, “Despite all this, the shares weakened in the aftermarket (though perhaps not surprising in this earnings season) given the near-term upside into next quarter, while solid, was not huge (yet).”
Supply Constraints Begin to Ease
Rasgon noted that the industry’s operating environment is improving as manufacturing capacity expands.
“That being said, while the entire industry remains cleanroom-constrained in the near-term, and KLAC themselves suffered from supply issues earlier in the year, those constraints are now easing, with clear acceleration into the end of the calendar year, and the set-up into CY27 continues to look really good to us as fab space comes online and spending in the company’s key areas,” they added.
The comments suggest analysts remain optimistic about the company’s longer-term growth prospects despite the more measured near-term outlook.
Outlook Offers Limited Near-Term Upside
KLA forecast first-quarter earnings per share between $1.06 and $1.26, compared with Wall Street expectations of $1.13.
The company also projected fiscal 2027 revenue in a range of $3.8 billion to $4.2 billion, versus the consensus estimate of $3.91 billion.
While the guidance broadly encompasses analyst forecasts, investors appeared disappointed by the lack of a more significant upside surprise.
Management Sees Growth Accelerating
President and CEO Rick Wallace expressed confidence in the company’s outlook, highlighting improving industry fundamentals.
“KLA’s June quarter results reinforce that the trends driving our growth are strengthening, and we see momentum across our business accelerating in the second half of calendar 2026 and continuing through 2027,” said Rick Wallace, president and CEO of KLA Corporation.
KLA Corporation stock price
