New York, January 29, 2026, 19:55 (EST) — In after-hours trading
- KLAC jolted sharply following KLA’s quarterly earnings and its March-quarter forecast
- Investors are treating KLA’s guidance as an early indicator of demand for AI-related chip tools
- China exposure and export regulations continue to be a major wildcard in the chip equipment cycle
KLA Corp shares climbed roughly 4% to $1,684.71 in after-hours trading Thursday, following a choppy response to its quarterly report. The stock had ended the regular session at $1,619.04 and swung widely late in the day.
This matters as KLA’s results come amid a packed earnings calendar for chip-equipment makers. Investors want to see if demand linked to advanced AI processors continues to drive tool orders.
KLA supplies process control and yield-management tools, including inspection and metrology equipment that checks chips for defects and measures critical manufacturing steps. Its performance often influences forecasts for chipmakers’ spending on increasingly complex production. 1
KLA reported fiscal second-quarter revenue of $3.30 billion and GAAP diluted EPS of $8.68. Adjusted EPS, which excludes certain items, came in at $8.85. The company generated $1.26 billion in free cash flow, the cash remaining after capital expenditures. For the March quarter, KLA expects revenue around $3.35 billion, plus or minus $150 million, and adjusted EPS near $9.08, with a margin of error of 78 cents. CEO Rick Wallace dubbed it “a record quarter,” highlighting how the firm “continues to uniquely benefit” from the AI infrastructure ramp-up. 2
KLA disclosed in a Form 8-K that it provided its earnings release as an exhibit to the current report, signed by CFO Bren D. Higgins. 3
KLA surpassed Wall Street expectations on both revenue and profit, with its March-quarter guidance also coming in above forecasts, according to LSEG data cited by Reuters. The stock dropped roughly 7% right after the report but later climbed back. Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, described KLA’s March-quarter outlook as “steady growth rather than renewed acceleration.” 4
Traders remain focused more on the momentum the outlook suggests than on the just-finished quarter. KLA’s guidance ranges are wide, which can hold back confidence, even if the midpoint beats consensus.
The downside risk is real. Chip-tool demand can drop sharply if customers push back deliveries, while the situation in China stays complicated. Export controls and local sourcing moves continue to shake up buying patterns throughout the supply chain.
Friday’s regular session will reveal if the after-hours bounce sticks when U.S. markets open again. As earnings season progresses, investors are eager for fresh details on order trends and demand across segments.
The real test comes with KLA’s fiscal third quarter, ending March 31, when it must meet its guidance for the period.
