This ranking evaluates how Fortune 500 companies are deploying AI, and how technology leaders value those investments relative to industry peers.

Fortune AIQ 75

With a combined revenue of $21 trillion and $2.1 trillion in profits, the 2026 Fortune 500 is the definitive list of America's largest companies.

Fortune 500

The 300 companies on this year’s list brought in over $12.5 trillion in revenue for the latest 12 months, with the median revenue figure at $24 billion.

America's Most Innovative Companies

Almost $20 trillion in revenue—and a record-breaking $1.87 trillion in profits. Introducing the 2025 Fortune 500, the definitive list of the biggest companies in America.

Industries included in the sector are computers, internet services, IT services, semiconductors, and software companies.

Fortune Sector Leaders: Technology

The Fortune 500, in its 70th year in 2024, ranks the biggest U.S. companies by revenue.

The 25th Fortune World’s Most Admired Companies list suggests that tech giants’ peers respect them as much as ever.

World's Most Admired Companies

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Industrials came out on top this year, with 22 companies featured on the list.

100 Fastest-Growing Companies

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This year’s Fortune 500 marks the 68th running of the list.

This year’s Fortune 500 marks the 67th running of the list.

Based in Milpitas, Calif., KLA produces process-control and yield-management systems for use in the making of semiconductors. Booming demand for chips helped KLA boost its revenue 27% in 2020, enabling it to land a spot on the <em>Fortune</em> 500 for the first time.

Collectively, the ranked companies produced a three-year average shareholder return of 33%, vs. 19% for the S&P 500.

This year's Fortune 500 marks the 66th running of the list.

This year's Fortune 500 marks the 65th running of the list.

This year's Fortune 500 marks the 64th running of the list.

This year's Fortune 500 marks the 63rd running of the list.

This year's Fortune 500 marks the 62nd running of the list.

This year's Fortune 500 marks the 61st running of the list. Wal-Mart claims the top spot again. See who made the list.

Wal-Mart stayed on top as its sales crept closer to half-a-trillion dollars. Apple moved into the top five. And UnitedHealth Group continued its steady climb. 

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KLA, together with its subsidiaries, designs, makes and sells “wafer fab” equipment—essentially, tools and software for quality control and yield management in the making of semiconductors. Until July 2019, the company was known as KLA-Tencor Corporation. It has been a Fortune 500 company since 2021.

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KLA (KLAC): Company Profile, Stock Price, News, Rankings

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Good afternoon. My name is Todd, and I will be your conference operator today. At this time, I would like to welcome everyone to the KLA Corporation December Quarter 2024 Earnings Conference Call and Webcast. All participants' lines have been placed in a listen only mode to prevent any background noise. After the speakers' remarks, there will be a question and answer session.

Thank you. I will now turn the call over to Kevin Kessel, Vice President of Investor Relations and Market Analytics. Please go ahead.

Welcome to our earnings call to discuss the December quarter and calendar year 2024 results and outlook. I'm joined by our CEO, Rick Wallace and our CFO, Brent Higgins. We will discuss today's results released after the market close and available at ir.kla. Com, along with supplemental materials. Today's discussion and metrics are presented on a non GAAP financial basis, unless otherwise specified.

All full year references we make are to calendar years. The earnings materials contain the detailed reconciliation of GAAP to non GAAP results. KLA's IR website also contains future investor events, presentations, corporate governance information and links to our SEC filings, including our most recent annual report and quarterly reports on Forms 10 ks and 10 Q. 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

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. Rick will start with some introductory comments followed by Brent with financial highlights and our outlook. Before I turn the call over to our CEO, Rick Wallace, I wanted to remind everyone that our 2025 Investor Day will be held on the morning of June 18 in

Thank you, Kevin. I will summarize KLA's overall performance for calendar 'twenty four and the December quarter and cover company highlights and updates on the industry landscape. For calendar 2024, KLA again delivered relative growth outperformance, strong

profitability and healthy return to shareholders. Specifically,

outperformance, strong profitability and healthy return to shareholders. Specifically, 2024 revenue grew 12% to a record $10,850,000,000 and the process control revenue grew by over 12%, which indicates increased market share, while the services business grew 15% to $2,500,000,000 for the year. Also for the calendar year, KLA maintained industry leading gross and operating margins at 61% 41% respectively. The company grew free cash flow to $3,400,000,000 and returned $2,900,000,000 in a combination of dividends and share buybacks. Caly's outperformance for the year was driven by a return to growth at the leading edge, which includes increased investments in AI, high performance computing and continued momentum in advanced packaging as well as sustainable performance for KLA Services business.

And turning to the December quarter, results for KLA came in above the midpoint of non GAAP guidance range despite navigating through the business impact of new U. S. Government export controls, which were released late in the quarter. Specifically, the quarter revenue topped $3,000,000,000 for the first time. Diluted GAAP was $8.20 finishing at the upper end of the guidance range for the quarter.

GAAP diluted EPS was $6.16 The business landscape is performing as expected and we are encouraged by the strong demand we are experiencing in leading edge logic with specific memory customers supporting high bandwidth memory and advanced packaging. KLA's differentiated portfolio of solutions aligns exceptionally well with enabling our customers to navigate increasing complexity, growing design starts and larger semiconductor devices in an environment of rising semiconductor demand. Specific highlights in the quarter include a combination of strong sequential and year over year revenue growth, demonstrate an improving industry environment. KLA is specifically positioned to benefit from accelerating growth at the leading edge. Across all sectors, our technology development investments supporting AI and HBM as well as strengthening supply demand environment, which positions the wafer fab equipment industry for growth at calendar 2025.

AI continues to be a crucial catalyst for KLA. We are well aware of the recent revelations of DeepSeq and the implications that it portends to diminish demand for advanced semiconductor in support of the AI infrastructure build out. As a company that has been developing AI models for use in our own inspection systems for many years, our own experience supports the theory that increased compute efficiency enables more adoption of AI in our platforms. The demand is clearly elastic. As it pertains to the demand environment for advanced semiconductors, we see no reason to believe that the increased compute efficiency in AI will have an impact on the advanced demand environment in the foreseeable future.

AI is both an important driver and enabler of KLA's business. Specific drivers connected to AI that are a positive for KLA's growth are higher volume and higher value wafer demand, more complex designs, accelerating product cycles, larger die size and growing advanced packaging demand. These trends demonstrate the increasing value of process control and assisting our customers through managing a dynamic production environment as investments and complexity increase. Exemplifying this momentum for our advanced packaging portfolio continued in the quarter. The growing demand for more powerful systems of chips is driving more complex heterogeneous chip integration enabled by advanced packaging, which increases the value of process control in the chip package.

This is fueling growth for KLA and our broad portfolio systems. KLA advanced packaging revenue grew to approximately $500,000,000 in calendar 2024 and is expected to exceed $800,000,000 in calendar 2025, up from our last estimate of $750,000,000 Tailored Service business grew to $667,000,000 in the December quarter, up 4% sequentially 18% year over year. This makes 50 consecutive quarters of growth for our services business on a year over year basis. Finally, quarterly free cash flow was $757,000,000 at calendar 2024 and the free cash flow margin was 31% over the same period, putting KLA amongst the top companies in the S and P 500. Total capital return in the December quarter was $877,000,000 comprised of $650,000,000 in share repurchase and $227,000,000 in dividends.

Total capital return over the past 12 months was $2,900,000,000 KLA views consistent and healthy capital returns as fundamental to delivering value for shareholders. KLA's December quarter results delivered strong sequential and year over year growth, which validates KLA's process control leadership and portfolio strength. KLA operating model and the dedication of our global teams continues to be the foundation

I'll now pass the call over to Bren to cover financial highlights and our outlook.

Thanks, Rick. Stanley's December quarter results demonstrate market leadership combined with the consistent execution and dedication of our global team to meet customer commitments and drive sequential and year over year growth profitability improvements. Revenue was $3,080,000,000 above the guidance midpoint of $2,950,000,000 Non GAAP diluted EPS was $8.20 above the guidance midpoint. GAAP diluted EPS was $6.16 Gross margin was 61.7 percent, operating expenses were $596,000,000 Operating expenses were comprised of $342,000,000 in R and D $254,000,000 in SG and A.

Operating margin was 42.3%. Other income and expense net was a $31,000,000 expense. The quarterly effective tax rate was 13.7%. Net income was $1,100,000,000 cash flow from operations was $850,000,000 and free cash flow was $757,000,000 The breakdown of revenue by reportable segments, end markets, major products and regions can be found within the shareholder letter and slides. Moving to the balance sheet, KLA ended the quarter with $3,800,000,000 in total cash, cash equivalents and marketable securities, debt of $5,900,000,000 and a flexible and attractive bond maturity profile supported by strong investment grade ratings from all 3 major rating agencies.

During the December quarter, we retired our $750,000,000 November 2024 bonds at maturity with cash on hand. KLA's balance sheet provides the ability to fund our growth strategies, organic and inorganic, and offer attractive capital returns to shareholders. Turning to our outlook. The industry outlook continues to gain momentum in the near term, driven by an increasing investment in leading edge logic, high bandwidth memory and advanced packaging. We expect the WFE market to grow by a mid single digit percentage in 2025 from the high $90,000,000,000 level for calendar 2024.

Growth in calendar 2025 is expected to be fueled principally by increasing investment in both leading edge foundry logic and memory to support growing AI and premium mobile demand, offset by lower overall demand from China due to the digestion of elevated levels of investment over the past couple of years. In an encouraging development, our top customer recently said in an earnings call that they expect the number of new tape outs or N2 for the 2 nanometer node in the 1st 2 years to be higher than both N3 and N5 in their 1st 2 years, fueled by both smartphone and HPC applications. As communicated in early December, we continue to estimate the impact on KLA's revenue in calendar 2025 from recent export controls in China to be approximately $500,000,000 plus or minus $100,000,000 with roughly 70% of the impact affecting our systems business. While we are hopeful based on our interpretation of the regulations that there should be licensing opportunities that will mitigate some of this impact, we are taking a cautious view given the significant delays in processing license requests by the U. S.

Government over the past few years. However, given KLA's business momentum, market share opportunities and higher expected process control intensity is a leading edge across all segments, we are confident we will continue to deliver growth outperformance compared with the WFE market in 2025. Dailies March quarter guidance is as follows: total revenue is expected to be $3,000,000,000 plus or minus $150,000,000 Our revenue guidance is up 27% year over year at the midpoint, further illustrating the improvement we expect to see in calendar 2025. Foundry logic revenue from semiconductor customers is forecasted to be approximately 73% and memory is expected to be approximately 27% of semi process control systems revenue to semiconductor customers. Within memory, DRAM is expected to be about 75% of the revenue mix and NAND the remaining 25%.

Non GAAP gross margin is forecasted to be 62%, plus or minus 1 percentage point or up approximately 30 basis points sequentially at the midpoint, despite slightly lower revenue primarily due to more favorable product mix expectations. For calendar 2025, based on expectations for business mix across systems and service, systems product mix and factory utilization, we expect gross margin for the year to be approximately 62%, plus or minus 50 basis points. Non GAAP operating expenses are forecasted in the March quarter to be approximately $585,000,000 as we continue to make significant product development and scaling investments to support expected revenue growth. Given our expectations for company growth over the next couple of years, we will maintain our operating expense trajectory. For the remainder of calendar 2025, we expect sequential increases of approximately $15,000,000 in incremental operating expenses per quarter.

This is driven by our priority around our product development roadmap requirements as well as revenue growth expectations. Our business model is predicated on ensuring 40% to 50% incremental non GAAP operating margin leverage on revenue growth over the long run. Other model assumptions include non GAAP other income and expense net of approximately a $36,000,000 expense for the March quarter and expect this to be roughly consistent throughout the calendar year. The tax assumption for March remains at 13.5%, and we expect this to remain through the June quarter. Beginning in the September quarter, which is the Q1 of our fiscal year, our tax rate will reflect the adoption of Global Taxation Pillar 2.

will drive the tax rate slightly higher to approximately 14% in the second half of the calendar year. We will provide an update on this planning rate mid year if necessary. For the March quarter, GAAP diluted EPS is expected to be $7.77 plus or minus 0.60 dollars and non GAAP diluted EPS of $8.05 plus or minus 0.60 dollars EPS guidance is based on a fully diluted share count of approximately 133,300,000 shares. In conclusion, our near term revenue guidance points to relative stability around current business levels. Based on the strength of our backlog and market position, we see growth in calendar 2020 5 and expect to outperform the mid single digit growth rate we expect from the WFE market.

KLA is focused on delivering a differentiated product portfolio that addresses customers' technology roadmap requirements and drives our longer term relevancy and growth expectations. With the KLA operating model guiding our best in class execution, KLA is focused on implementing our strategic objectives designed to drive outperformance. KLA's focus on customer success, innovative solutions and operational excellence drives industry leading financial and free cash flow performance and allows us to return capital consistently. That concludes the prepared remarks. Let's begin the Q and A.

We'll take our first question from Vivek Arya with Bank of America. Please go ahead. Your line is open.

Hi. This is Michael Mongey on for Vivek Arya. Thank you for taking our questions. To start, we heard from 2 of your peers yesterday, the peer that is action deposition focused issued a pretty similar WFE view to you guys for Investecondegas, while the other reiterated their annual guide suggesting that litho spending remains healthy. So the question is if total WFE is increasing something like $5,000,000,000 or so this year, But within that, Lotto WFE is also increasing, acting up also growing pretty strong, so consuming a good part of that incremental growth.

What exactly is happening to the process control part of the market this year? And if process control WFE is growing solidly, which it seems like it is, does that suggest that mid single digits for WFE could be conservative? Or are there other parts of the market that are shrinking by that much? Thank you.

Yes. This is Brent. I'll take that one. And the guidance was clear that we think it's somewhere in that range of about $5,000,000,000 to use your number into 2025 versus 2024. We feel pretty good about KLA's share of overall WSE opportunity into next year.

Obviously, as we move into 'twenty five, we've got more investment in leading edge and that's certainly a nice driver for our business and we're already seeing KLA share of WFE at the N2 node being meaningfully greater than

N3. What's happening in the DRAM, 1st advanced DRAM is good for us with scaling in EUV, but also as you look at high bandwidth memory, high bandwidth memory is also driving process control intensity due to the lack of redundancy, more complex logic circuitry in the base die, the need for more reliability, bigger chips and so on. So we feel pretty good about all of that. And then I think finally, the growth that we referenced in the letter in advanced packaging is accelerating for the company. It seems like every quarter, I keep raising the numbers.

So I'm pretty excited about the opportunities that are there and it seems to be accelerating as we move into this year. So for all those reasons, it looks like process control intensity, KLA share of market looks to increase in 2025 based on our assessment. And in an environment where memory is probably a higher percent given expected growth in DRAM, I think the dynamics they talk about more than offset a slightly changing mix. That's still foundrylogic heavy, but a little bit more DRAM in terms of our views on 25.

Got it. That's helpful. Thank you. And for my next question, just could you help us with

the best extent you can just because we're kind of at a high watermark to revenue this quarter. So should we expect maybe to be more 1st half weighted versus second half, especially given China's normalized unit for the year and then

there's this impact of the export restrictions that we should consider? Thank you very much.

the letter, we feel pretty good about relative stability as we look at the funnel here moving forward. We'll see as we start to move through the year what happens. But in terms of how we're modeling the company, it seems that we're bouncing around this $3,000,000,000 level plus or minus, at least as we look at the first half of the year. Next question, please.

Our next question will come from Harlan Sur with JPMorgan. Please go ahead.

On Process Control, strong outperformance for the team in calendar 'twenty four. I your Process Control Systems business was up 15% year over year, right? That's versus WSE at up in the mid single digits. But if I look back over the past 5 years, the team's Process Control business has outgrown WFE on average by about 500 to 700 basis points per year. So given this year is going to be more leading edge technology inflection driven, which is where obviously you guys have a strong leadership position.

Is it fair to assume that if WFE is up mid single digits percentage points this year that your process control business should grow kind of low to mid teens percent in calendar 'twenty five?

Harlan, that's a thank you for those comments. Obviously, we're not going to guide for the year. But clearly, we're feeling great about the position we have. And a couple of things have changed, as you well know, in terms of the dynamics. 1, because we've resumed scaling, there's more opportunity for more inspection.

So I've always viewed the opportunities as being 2 fold. 1, there needed to be an opportunity and then we had to have a solution. And so and sometimes we've had the case where, for example, if you go back years to 3 d NAND, where, of course, if we could have looked through and found defects, there would have been opportunity of stuff to do. But now we're really at an interesting point where the leading edge, every dynamic is going kind of in our favor. In terms of higher value wafers, you've got larger die size, we talked about this in the prepared remarks, and you've got accelerated technology nodes and more layers that need to be figured out.

The other dynamic, of course, that you know is HBM is looking more like logic than it used to, less redundancy, more valuable buy and of course the dynamic around packaging. So we feel great, as Bren said, about Process Control's position and overall the spend for our customers. And that's the conversation we're having with our leading customers is very focused on getting that availability and being supportive of their technology ramps as they make these big investments going forward.

That's great. Thank you for that. And then on the 60% growth outlook for your advanced packaging business this year, can you just kind of help us unpack that a bit? How much of that mix is 2.5D pachydermene technology like COOS versus HBM versus other pachydermene types? And what is the rough mix of process control versus semi manufacturing systems?

And then we're already starting to see some future AI designs moving to 3 d SOIC technology starting next year. Is this a further tailwind for the team given the higher complexity of these next generation 3 d architectures?

Yes. Great questions. I mean, I think 2 things have happened and we got this early indication from our leading customers a year and a half, 2 years ago that the challenges in packaging were going to look a lot more like what was going on in the front end and they asked us to make some of the platforms that we use for the front end available for packaging. And so back to the question, what is this, a lot of it's inspection and metrology. Derivatives of the projects and programs that we have and have many years of experience with.

There's clearly some plasma dicing, so SPTS is part of that overall solution. But there's no question that our customers are driving. As you know, it's a very expensive when you have these high end chips along with this complex packaging and this HCM, the risks are very high if there's yield loss. So there's more inspection opportunity there and we feel great about the continued growth as we go forward. HV, but we see it's going to go forward and our customers are this is an area that's moving very quickly and because they need solutions, they're very focused on making sure we understand them as we go forward.

Hey, Arlen, Bren here. It's about 65%, 70% semi PC versus process.

Thank you. Our next question will come from C. J. Muse with Cantor Fitzgerald. Please go ahead.

Yeah. Good afternoon. Thank you for taking the question. I just wanted to dig a little bit deeper in your outperformance relative to WFE. Within that, you're including that $500,000,000 China hit.

And so we'd love to hear, I guess, beyond the rising process control intensity at 2 nanometer and HBM, are there other drivers? Are those the 2 principal ones we should be thinking about?

Yes. C. J, those are the 2 principal ones. Plus some sugar. Yes.

You've got higher intensity at the node. And to Rick's point, we feel very good about some product momentum in a number of our markets. So that's and then I think finally, as you look at that and you look at what's driving growth within Process Control, you've got an acceleration in certain products where we have a strong market position. So they're influencing the growth rate obviously more relative to the overall. So that also drives an improvement in share.

Optical pattern inspection being one of those areas. Well, and medical, and we saw some improvement in some of the work in medical and including the Gen 5 CTI for print check, which is obviously shows up in the optical, but it's part of that solution. So, look, we're feeling pretty good and there was some investment made by our customers to support prior notes once they realized that there was still a yield opportunity there.

Just to follow-up on that, you Rick, you talked about share gain. Can you elaborate on that? And then my second question would be on service. You talked about hitting kind of the long term growth rate over time, but would be curious given kind of the China impact, how you're thinking about growth for overall service in in calendar 'twenty five? Thanks so much.

Sure. So on the share side, I think there's a couple areas that might be more obvious than others. One is optical simply because optical grew disproportionately perhaps in the rest of the market and we have a large share there. So that creates a greater overall position there. We had some really strong momentum in e beam, but then the other area where we really saw some strong performance was in packaging.

And so that's the one where the teams have really done a great job focusing in the last couple of years and we've been able to see continued momentum there. So we feel pretty good about it. Obviously, the numbers for the year aren't going to come out, but we have gained a lot of share in the last couple of years and the question was would there be any retrenchment, we feel pretty good about where we are. For service, anytime you lose access to a fab, you have the immediate headwind that you can't get access to that equipment. So as I look at growth this year, I think growth is probably in the high single digits for service, which is below our the long term model.

We outperformed the long term model by a little bit in 2024. Over time though, it's generally our view at least in terms of how we run the company as we think about the efficiency of the market that if you have fabs that are inhibited from being able to supply that capacity has to get added somewhere else. And so that would create an opportunity for us to make some of that up over the very long term. So and obviously that would mean that you would end up with whatever was spent before would have to be replaced somewhere else. So I think over the long run, we feel pretty good about the growth trajectory in our long term model.

But in the short run, it does affect obviously your ability to get at that capacity, which puts pressure on the growth rate and also puts some pressure on our ability to move resources around. And so we'll have to deal with some inefficiency as we've staffed up to support those fabs and now we have to move those folks to support other customers. So there's a few moving parts. But in the long run, we feel pretty good about the trajectory given the higher value offerings, what we're seeing in terms of pricing as it relates to new products, the opportunities in packaging for incremental service. So I think that the drivers for service are all pretty compelling.

Obviously, the installed base is growing, lifetimes are increasing. So in the long run, we feel pretty good about the long term target.

Our next question will come from Joe with Wells Fargo. Please go ahead.

Yes. Thank you for taking the question. Just to follow-up on the services impact from China. Just given the fact that most of your services is highly recurring, do we just take that, I guess, quarterly kind of run rate impact all in the March quarter and then grow from there? Or is there further kind of headwinds to think about in the out quarters?

Yes, I think that's the way to think about it because you lose what you would have gotten at those fabs and then it grows from there. So, I think that's a reasonable way to think about it.

Okay, perfect. And then just thinking about capital intensity or process control on the DRAM side, can you talk about just the difference in HBM process control intensity relative to conventional DRAM, just how to think about that adoption? I know obviously EUV being adopted across the board is helpful for you guys too.

Yes. So as I said earlier, right, with an HBM device, you've got a few things that are happening. You've got bigger die because you have to drill the TSGs. They're bigger, so you have less redundancy, which historically has been pretty significant to DRAM. And so that's been a headwind to process control intensity.

The logic circuitry is more complex. The reliability on all the die in the stack is higher. So for all those reasons, it's very good for process control intensity. I think overall for DRAM, it's moving the needle probably somewhere from, we'll call it, the 9% to 10% range where we've been historically as a percent of WFE that it probably moves up a good 100 to 150 basis points from there. Now obviously, mix will affect that.

Most of the focus is on HBM in terms of new requirements. So mix dynamics could affect that. But we feel pretty good about these dynamics as they affect and drive the DRAM market. And it's most pronounced in the latest technology nodes and that's where we're seeing it more. And so it's going to take a little bit of a time for us to really figure out what that overall looks like.

in a pretty good position to talk about it

Thank you. Our next question will come from Timothy Arcuri with UBS. Please go ahead. Your line is open.

Thanks. Brandon, can you give us some RPO? It was supposed to be up. Can you give us the number?

Yes. So, RPO was down about 900,000,000 dollars About half of that was related to deep bookings we took due to the December 2 regulations. So about half of it related to that and then the other half, shipment levels were higher. So that's how it

Got it. Okay, thanks. And then process control systems, you said pretty stable from here.

it didn't grow that much, but it grew a lot in Q4. So how

to think about it for this year? Can it grow 10%, perhaps low double digits this year?

Yes. I think overall, EPC is probably going to be about mid single digits. You have to remember that what shows up in EPC is flat panel business. And so at the end of this quarter, we will be done shipping systems for flat panel flat panel revenue coming out. And so obviously that in this year affects the overall growth rate of the EPC businesses as we report those segments.

So overall, we feel pretty good. If you look at SBTS, I think So overall, we feel pretty good if you look at SPTS growth, especially semiconductor mostly driven by advanced packaging growth year to year. IQOS, component inspection, again a packaging centric business is also growing. PCB businesses are more tied to mobility and capacity, so less growth in those areas. And then of course you got the offset from losing the FPD piece.

Now losing the FPD piece does enhance the margin ratios. Right gross margin is probably 20 bps higher. I think operating margins are probably 30 bps higher because the revenue mix is a little bit richer and certainly that's factored into how we guided gross margins as we look at next year or look at this year, 2025.

Thank you. Our next question will come from Krish Sankar with C. B. Cowen. Please go ahead.

And Rich and Brian, thanks for quantifying the $500,000,000 plus a minus impact from export control. We also spoke about China WFE digestion. I'm just kind of curious, if you lay in the digestion from China, how to think about your decline in China sales year over year on top of export controls in 'twenty five versus 'twenty four?

Yes, I'll try to help with that. I mean, obviously, we'll have to see how the year plays out. But if you look at how we finished the year, right, this last quarter was 36%. We finished the year at 41% of our business in China. As we look at 2025, I think that percentage drops to about 29% plus or minus a point or 2 as we go forward here.

KLA (KLAC) Q2 2025 Earnings Call Transcript

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