KLA Raises Guidance 6.7% Revenue and Projects $1B Packaging Sales in 2026
LRCX•Management raised its next quarter revenue forecast by 6.7% and EPS outlook by 9.2% after seeing customers' demand visibility. It now expects 2027 growth to exceed 2026 rates and projects advanced packaging revenue to jump from $635M in 2025 to $1B in 2026 despite a 100bp margin headwind.
1. Guidance Lift and Demand Visibility
On April 29, management raised the upcoming quarterly revenue forecast by 6.7% and EPS outlook by 9.2% after reporting unprecedented demand visibility from customers. The stock climbed another 17.2% following this guidance, reflecting investor confidence in a sustained upcycle.
2. Advanced Packaging Growth Outlook
The company now forecasts its advanced packaging business revenue to increase from approximately $635 million in 2025 to $1 billion in 2026, signaling an inflection driven by AI chip demand. Management also expects the year-over-year growth rate in 2027 to exceed that of 2026, suggesting multi-year expansion.
3. Margin Pressure and Capacity Constraints
Management flagged a roughly 100 basis point negative impact on gross margin from elevated memory component costs that aren't being passed to customers. The firm noted physical limits to fab construction could constrain industry supply, potentially leading to future bottlenecks despite robust demand.
