KLA Corp, the Milpitas, California-based maker of chip inspection and process-control equipment, told investors on Thursday it expects quarterly revenue above consensus, driven by strong ordering from semiconductor manufacturers increasing production of high-end processors used in artificial intelligence.
For the fourth quarter, the company forecast revenue of $3.58 billion, plus or minus $200 million. That guidance compares with analysts' average estimate of $3.54 billion, according to data compiled by LSEG. KLA also projected an adjusted profit of $9.87 per share for the period, plus or minus $1.00, versus the $9.80 per share analysts currently expect.
Despite the stronger-than-expected outlook, KLA's shares fell more than 7% in extended trading. The stock had risen about 50% through Wednesday's close this year as spending on equipment from suppliers such as KLA accelerated in response to demand for processors that power large language models and other AI applications.
Last quarter, KLA reported revenue of $3.42 billion, beating analysts' estimates of $3.37 billion, and posted an adjusted profit of $9.40 per share versus expectations of $9.14. Those results underscore rising process-control intensity as chip architectures become more complex and manufacturers seek tools to preserve yields and manage costs.
KLA's product set is focused on identifying and addressing microscopic defects during chip fabrication. The company also derives recurring income from its services segment, which provides maintenance and optimization for its installed equipment base. That mix of capital equipment sales and service revenue shapes the company's cash flow and recurring revenue dynamics.
Industry peers are reporting similar momentum: last week, Lam Research forecast fourth-quarter revenue above Wall Street estimates, reflecting broader strength in capital spending tied to high-end chip production.
In addition to operational results, KLA announced corporate actions last month that affect shareholder returns: a $7 billion share buyback program and a 21% increase in its quarterly dividend.
For investors and industry observers, KLA's guidance, recent quarterly beat, and shareholder actions together signal continued demand for process-control equipment as the chipmaking cycle shifts toward increasingly precise and demanding manufacturing for AI processors. The company’s after-hours share reaction highlights the market’s sensitivity to near-term expectations and sentiment.