KLA Corporation

Good afternoon. My name is Angela, and I will be your conference operator today. At this time, I would like to welcome everyone to the KLA Corporation June quarter 2026 earnings conference call and webcast. All participant lines have been placed in a listen-only mode to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question at that time, please press star 1 on your telephone keypad. Thank you. I would now like to turn the call over to Kevin Kessel, Vice President of Investor Relations and Market Analytics. Please go ahead.

Welcome to the June 2026 quarterly earnings call. I'm joined by our CEO, Rick Wallace, and our CFO, Bren Higgins. We will discuss today's results, as well as our outlook, which we released after the market closed and is available on our website, along with supplemental materials. We are presenting today's discussion and metrics on a non-GAAP financial basis, unless otherwise specified. All FOIA references we make refer to calendar years. The earnings materials contain a detailed reconciliation of gaps and on-gap results. It should also be noted that effective June 11, 2026, JLA completed a 10-for-1 stock split. All current and prior EPS and other per share amounts referenced on this call and our materials have been adjusted to reflect the split. Our comments today are subject to risks and uncertainties reflected in the disclosure of risk factors in our SEC filings. Any forward-looking statements, including those we make on the call today, are also subject to those risks, and KLA cannot guarantee those forward-looking statements will come true. Our actual results may differ significantly from those projected in our forward-looking statements. For any subsequent updates, please refer to KLA's IR website, which also contains investor events, presentations, corporate governance information, and links to our SEC filings. We will begin the call with Rick providing commentary on the quarter and our overall business environment, followed by Bren with financial highlights and our outlook. Now, over to Rick.

Thanks, Kevin. For the June quarter, KLA results were strong with revenue, profitability, and earnings to share all above the midpoint of guidance. Specifically, revenue reached a record $3.66 billion supported by accelerating investment tied to AI infrastructure, continued strength in leading-edge Foundry logic, and increasing process control intensity across memory and advanced packaging. These results continue to underscore KLA's market leadership and the growing strategic importance of process control as semiconductor innovation becomes more complex. The industry is in a period of accelerating investment driven by AI compute, a robust design environment, larger and more sophisticated device architectures, rising HBM adoption, and increased advanced packaging requirements. Across these inflection points, customers are relying on KLA's portfolio of systems, services, and expertise to accelerate yield learning, improve productivity, and scale new technologies into high-volume manufacturing. KLA remains uniquely positioned on the critical path of AI infrastructure expansion, where the increasing number and sophistication of leading-edge designs that are consuming a growing percentage of new wafer starts are driving greater demand for process control. The rapid expansion of the AI ecosystem requires more advanced logic and memory, new complex manufacturing and packaging flows, and additional KLA systems and services to ramp, yield, and sustain high-volume production. Since our March investor day, demand signals across AI infrastructure have strengthened materially. supported by accelerated hyperscale data center investment, rising AI compute requirements, and broader adoption of AI-enabled applications. Customer engagements remain robust, visibility continues to improve, and the way the equipment market outlook continues to expand. We expect momentum across our business to accelerate through the second half of calendar 2026 and for significant growth to continue in calendar 2027. In highlighting KLA's unique position in the market, AI-driven design activity and HVM adoption are only part of the process control story. Process control intensity has increased through the faster product cycles, higher value wafer and mask, more rigorous device performance specifications, growing design variability, and advanced packaging. We now expect our advanced packaging process control systems revenue to grow to approximately $1.1 billion in calendar 2026, up more than 70% year-over-year, above our prior expectations of high 50% growth, and almost two times faster than the advanced packaging market. Outside of our core semiconductor process control business, high-performance compute packages and integration are also driving our specialty process, PCB, and component instruction businesses, augmenting the company's growth momentum. ALA entered many of these markets in 2019 as part of the Orbitech acquisition. Our investment thesis for the transaction was centered around the rising value of the chip package, and the ability for the KLA operating model to drive product strategy, business execution, to take advantage of this evolving trend. With these combined products expected to grow over 25% in calendar 2026, we are encouraged by the future opportunities in these markets. Finally, in the quarter, KLA services delivered $820 million in revenue, up 17% year over year, as customers rely on KLA to maximize tool performance, productivity, and Availability across a growing installed base. In summary, our June quarter results demonstrate the strength of KOA's market position and operating model execution. Looking ahead, customer engagement and demand signals continue to strengthen and we are adding capacity to support expected demand. Growth is accelerating in the second half and we're well positioned to execute in a strong demand environment across all segments over the remainder of calendar 2026 and into calendar 2027. And with that, I'll turn the call over to Bren to discuss the quarter's financial highlights.