Semiconductor Equipment Company KLA Reports Record Quarterly Revenue, Forecasts Over 70% Growth in Advanced Packaging Equipment Sales
KLA's financial results show record revenue and margins driven by AI demand, alongside an upward revision to overall semiconductor equipment market estimates.
US-based semiconductor inspection and metrology company KLA (NASDAQ: KLAC) reported its first-quarter fiscal 2026 results ending in September on October 28, 2026. Revenue reached a record $4.14 billion, up 29% year-over-year and 13% sequentially. The operating margin rose to a company-record 46.1%, and earnings per share exceeded the midpoint of previous guidance.
CEO Rick Wallace attributed the growth to strong demand for process-control equipment tied to artificial-intelligence infrastructure investments, particularly in leading-edge logic, memory, and advanced packaging. KLA expects revenue from advanced-packaging process-control systems to reach approximately $1.1 billion in calendar 2026, representing more than 70% year-over-year growth. This rate is nearly twice the expected growth of the broader advanced-packaging market.
Looking ahead, KLA projected December-quarter revenue of about $4.7 billion. The company also raised its estimate for the calendar 2026 wafer-equipment market (WFE) to the mid-$150 billion range and anticipates the market will exceed $200 billion in 2027 as AI-driven expansion continues.
Despite absolute growth, CFO Bren Higgins noted that China's share of total revenue is expected to decline to the low-20% range in 2027, as spending outside China grows more rapidly. Currently, China accounts for roughly 27% to 29% of the expected fourth-quarter revenue.