# KLA (KLAC): A Record Quarter, a Beat — and the 1% Number Nobody Noticed

Page: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/kla-klac-a-record-quarter-a-beat-and-the-1-number-nobody-noticed
Text version: https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/kla-klac-a-record-quarter-a-beat-and-the-1-number-nobody-noticed.md
Podcast: [Charged Alpha Stock Encyclopedia](https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792)
Published: 2026-07-29T13:58:53+00:00
Episode link: https://chargedalpha.podbean.com/e/kla-klac-a-record-366b-quarter-a-beat-%e2%80%94-and-the-stock-still-fell-14/
Audio file: https://mcdn.podbean.com/mf/web/f58sfzwlh6sqdj7k/audio_4.mp3
Processing state: not_requested
JSON: https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/kla-klac-a-record-quarter-a-beat-and-the-1-number-nobody-noticed
Duration seconds: 893

## Resource

KLA Corporation (KLAC) Q4 FY2026 — KLA Corporation (KLAC), the dominant supplier of semiconductor process-control (inspection and metrology) equipment with roughly 58% market share, reported fiscal Q4 2026 (quarter ended June 30, 2026) after the close on July 28. Revenue was a record $3.658B, +15.2% YoY and above the midpoint of guidance; non-GAAP EPS of $1.05 beat the ~$1.02 consensus; non-GAAP gross margin of 62.4% landed at the upper end of guidance. GAAP net income was $1.363B and GAAP diluted EPS $1.04 — the low per-share figure reflects the 10-for-1 stock split effected June 11, 2026 (1.315B diluted shares). FY26: revenue $13.579B (+11.7%), GAAP net income $4.831B (+18.9%), non-GAAP EPS $3.76. Guidance for Q1 FY27 was $4.0B +/- $200M (about +25% YoY, above the ~$3.92B consensus) with non-GAAP EPS of $1.16, and management raised its calendar-2026 wafer-equipment market view to the low $150B range from $140B+. Yet the stock fell ~9% after the print, on top of a 6.2% decline that session — about 42% below its June 30 closing high of $301.71. Two under-covered facts explain the reaction. First, wafer inspection — KLA's highest-margin, highest-share franchise — grew just 1% YoY and fell from ~56% to 49% of revenue; growth came from lower-margin patterning (+61%), PCB and component inspection systems (+96%) and services (+17%), which is why non-GAAP gross margin actually declined from 63.2% to 62.4% on 15% more revenue, and why September gross margin is guided flat at 62.5% on ~10% more revenue. Second, cash conversion deteriorated: FY26 free cash flow was $3.767B versus $3.747B — flat — while net income rose 19%, so FCF/net income fell to 78% from 92% in FY25 and 110% in FY24; Q4 FCF fell 23% YoY to $817M as receivables consumed $586M in the quarter and ended the year…

## Actions

- request_transcript: `POST https://stenobird.com/v1/public/podcasts/charged-alpha-stock-encyclopedia-7819792/episodes/kla-klac-a-record-quarter-a-beat-and-the-1-number-nobody-noticed/transcription-requests` — Idempotently request low-priority transcript generation for this episode.
- read_markdown: `GET https://stenobird.com/podcast/charged-alpha-stock-encyclopedia-7819792/kla-klac-a-record-quarter-a-beat-and-the-1-number-nobody-noticed.md` — Read the agent-friendly Markdown representation of this episode resource.

A page view does not enqueue transcription. Agents should invoke `request_transcript` explicitly when they need this episode processed.

## Transcript

Full transcripts are not published on public pages unless there is a clear rights basis.