KLA (KLAC) Financials

KLA Corporation (NASDAQ: KLAC) has demonstrated solid financial performance over the last four years, showing steady revenue growth, strong profitability, and effective capital management.

Key positive trends and highlights:

• Total Revenue increased from approximately $2.29 billion in Q3 2022 to over $3.06 billion in Q3 2025, reflecting consistent top-line growth over the period.
• Net Income from continuing operations has grown from around $730 million in Q3 2022 to nearly $1.1 billion in Q3 2025, indicating improving profitability.
• Gross Profit margins have generally increased, supported by steady control of Operating Cost of Revenue relative to revenue growth.
• Operating Income improved, reaching about $1.3 billion in Q3 2025 compared to approximately $846 million in Q3 2022.
• The company has maintained healthy cash flow from operations, with quarterly net cash provided by operating activities averaging near or above $1 billion recently.
• KLA returned value to shareholders consistently, with cash dividends per share increasing from $1.05 in 2022 to $1.70 by Q3 2025.
• Share repurchases have been significant over the periods, reflecting management’s confidence and efforts to enhance shareholder value.
• Total equity has increased from about $2.9 billion in Q3 2022 to over $4.0 billion by Q3 2025, showing a strengthening balance sheet.
• KLA maintained a robust investment in property, plant, and equipment, supporting ongoing operational capabilities and growth.
• Effective tax rate fluctuated but remained in a reasonable range consistent with the nature of the business and geographic mix.

Neutral observations:

• Interest expense slightly increased but remains well-covered by operating income, indicating manageable debt levels.
• Inventories increased over time, which could reflect growth, but warrants monitoring for potential impacts on working capital efficiency.
• Long-term debt increased moderately, with consistent repayments and new issuances reflecting active debt management.

Potential concerns:

• Impairment charges appeared notably elevated in some quarters, such as Q2 2025’s $239 million charge, which may indicate asset write-downs or restructuring costs impacting net income temporarily.
• Volatility in net changes of cash and investing activities, with large swings in investments purchases and sales, suggests capital allocation requires close attention.
• Non-cash adjustments and changes in operating assets/liabilities have occasionally led to fluctuations in operating cash flow, potentially affecting short-term liquidity.

Summary: KLA has shown strong and consistent revenue and profit growth over the last four years, alongside solid cash flow generation and disciplined capital allocation including dividends and repurchases. While occasional impairment charges and investment swings reflect areas to monitor, overall financial health and operational performance remain robust, supporting a positive outlook for shareholders.