Chip gear maker KLA's Q1 revenue beats analyst estimates on AI demand

KLA

28/10/2026 20:15

Overview
US semiconductor equipment maker's fiscal Q1 revenue rose, beating analyst expectations
Adjusted EPS for fiscal Q1 increased to $1.22
Company cites AI ecosystem buildout and advanced packaging demand as growth drivers

Outlook
KLA expects Q2 revenue of $4.7 bln +/- $200 mln
Company sees Q2 GAAP diluted EPS of $1.41 +/- $0.11
KLA forecasts Q2 non-GAAP gross margin of 62.5% +/- 1.0%

Result Drivers
AI ECOSYSTEM BUILDOUT - Co said process control remains critical to AI ecosystem buildout, benefiting from increases in leading-edge designs, device size and value, memory complexity and performance requirements
TECHNOLOGY TRANSITIONS - Co said process, PCB, and component inspection businesses benefited from technology transitions and rigorous performance requirements of high-performance computing

Company press release: ID:nPn30xW6ga

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
Beat
$4.14 bln
$4.04 bln (19 Analysts)
Q1 Adjusted EPS
 
$1.22
 
Q1 EPS
 
$1.18
 
Q1 Net Income
 
$1.55 bln
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 19 "strong buy" or "buy", 8 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the semiconductor equipment & testing peer group is "buy"
Wall Street's median 12-month price target for KLA Corporation is $227.00, about 47.7% above its October 27 closing price of $153.66
The stock recently traded at 26 times the next 12-month earnings vs. a P/E of 59 three months ago

Reuters Recommended Reads
Oct 27 - Netherlands' ASM International Q3 revenue jumps on strong growth in memory sales
Oct 28 - Chip tool maker ASM expects to exceed 2027 sales goal on strong AI demand, CEO says
Oct 27 - Netherlands' NXP Semiconductors Q3 revenue rises 19%, slightly beats estimates

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)