KLA Corp announced a new $7 billion stock buyback program and increased its quarterly dividend by 21% to $2.30 per share. The company also reaffirmed its financial forecast for the current quarter.
The announcements come as KLA benefits from strong demand for its semiconductor manufacturing tools, driven by investment in AI infrastructure and chips. This demand led the company to exceed revenue and profit expectations last quarter and has significantly boosted its stock price.
The main topics covered are KLA's financial actions (buyback, dividend increase, and forecast), the strong performance of its stock, and the company's positioning and growth driven by the artificial intelligence boom.
Chipmaking tool provider KLA Corp on Thursday announced a new $7 billion stock buyback program and a 21% increase in its quarterly dividend, while reaffirming its forecast for the current quarter.
This buyback, with no specified timeframe, is âin â addition to the â company's existing share repurchase authorization, which stood at $3.94 billion as âof December 31, 2025.
KLA's shares have risen more than 20% âthis year, after a nearly 93% jump last year, driven by relentless investment in data center infrastructure for âartificial intelligence tech and the chips that â power it.
Chipmakers âhave ramped up orders for KLA's semiconductor fabrication tools used in manufacturing AI processors â and memory chips, helping KLA beat Wall Street expectations for second-quarter revenue and profit in January.
The âcompany said on Thursday it is raising its quarterly dividend to $2.30 per share from $1.90 per share.
Additionally, it maintained its forecast for the March quarter, with revenue expected at $3.35 billion, plus or minus $150 âmillion, and adjusted earnings per share of $9.08, plus or minus 78 cents.
KLA's products and services âare "key enablers âof the â AI ecosystem and remain on track to continue to deliver sustainable market outperformance over the next several years," CEO Rick Wallace âsaid in a statement.
The rapid build-out of AI infrastructure - a major driver for KLA - has absorbed much of the world's memory chip supply, boosting production capacity expansions and helping the company's sales.
This buyback, with no specified timeframe, is âin â addition to the â company's existing share repurchase authorization, which stood at $3.94 billion as âof December 31, 2025.
KLA's shares have risen more than 20% âthis year, after a nearly 93% jump last year, driven by relentless investment in data center infrastructure for âartificial intelligence tech and the chips that â power it.
Chipmakers âhave ramped up orders for KLA's semiconductor fabrication tools used in manufacturing AI processors â and memory chips, helping KLA beat Wall Street expectations for second-quarter revenue and profit in January.
The âcompany said on Thursday it is raising its quarterly dividend to $2.30 per share from $1.90 per share.
Additionally, it maintained its forecast for the March quarter, with revenue expected at $3.35 billion, plus or minus $150 âmillion, and adjusted earnings per share of $9.08, plus or minus 78 cents.
KLA's products and services âare "key enablers âof the â AI ecosystem and remain on track to continue to deliver sustainable market outperformance over the next several years," CEO Rick Wallace âsaid in a statement.
The rapid build-out of AI infrastructure - a major driver for KLA - has absorbed much of the world's memory chip supply, boosting production capacity expansions and helping the company's sales.
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