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• KLA is like the John Deere for chip manufacturing, supplying the essential, complex equipment that produces advanced microchips.
• KLA is like the Zeiss for semiconductors, providing the ultra-precise inspection and metrology tools critical for making high-quality chips.
• KLA is like the Dolby Labs of microchip production, offering the indispensable process control technology that ensures chip quality and performance.

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• Wafer Inspection Systems: Equipment designed to detect defects and anomalies on semiconductor wafers throughout the manufacturing process.
• Reticle and Mask Inspection Systems: Tools used to inspect the photomasks and reticles, which are critical patterns used to print circuits on wafers, for defects.
• Metrology Systems: Advanced instruments that measure critical dimensions, film thickness, material properties, and other physical characteristics on wafers.
• Process Control Software & Analytics: Software solutions and analytics platforms that integrate data from inspection and metrology systems to optimize manufacturing processes and improve yield.

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Rick Wallace, President and Chief Executive Officer

Rick Wallace serves as the Chief Executive Officer and President of KLA, and is also a member of the company's Board of Directors. He joined KLA Instruments in 1988 as an applications engineer and has since held various general management positions throughout his more than 30-year tenure with the company. These roles include President and Chief Operating Officer, Executive Vice President of the Customer Group, and Executive Vice President of the Wafer Inspection Group. Wallace became President and CEO in January 2006. Earlier in his career, he held positions with Ultratech Stepper, Cypress Semiconductor, and Procter & Gamble. He currently serves on the Board of Directors of Marvell Technology, Inc. He previously served on the Board of Directors of Splunk, Proofpoint (which was acquired in 2021 by Thoma Bravo), and NetApp. Wallace also served on the Board of Directors of SEMI (Semiconductor Equipment and Materials International), including a term as its Chairman of the Board. He earned a bachelor's degree in electrical engineering from the University of Michigan and a master's degree in engineering management from Santa Clara University.

Bren Higgins, Executive Vice President and Chief Financial Officer

Bren Higgins oversees KLA's worldwide finance and accounting organizations, global manufacturing, logistics and supply chain operations, business development (including mergers and acquisitions), workplace services, IT, and investor relations. He joined KLA in 1999 and has held numerous roles within the company, including multiple division controller assignments, group controller for KLA's largest business group, senior director of financial planning and analysis, and Vice President of corporate finance, where he was responsible for treasury, investor relations, and corporate business development. Higgins was appointed Executive Vice President and Chief Financial Officer in July 2013. He earned his bachelor's degree from the University of California at Santa Barbara and his Master of Business Administration degree with a concentration in Finance from the University of California at Davis.

Ahmad Khan, President, Semiconductor Products and Customers

Ahmad Khan serves as President of KLA's combined product and customer organization, Semiconductor Products and Customers (Semi PC). He joined KLA in 2004, initially with responsibilities for business development. Over his tenure, he has moved through various management positions, including general manager of the Optical Films Metrology division, Group Vice President for the Patterning Division, Executive Vice President of the Global Products Group, and President of Semi PC. Before joining KLA, Khan held various project engineering and management roles at Applied Materials for nine years. He earned his bachelor's degree in electronics engineering technology from DeVry University.

Brian Lorig, Executive Vice President, KLA Global Services

Brian Lorig serves as Executive Vice President of the KLA Global Services organization, which is responsible for enabling customers to maintain high availability and performance of KLA tools and maximize the long-term value of their systems. He joined KLA in 1998 and has held a number of leadership positions in Manufacturing Operations and Service. These roles include Vice President of U.S. Manufacturing and Operations Group and Vice President of Global Support and Services Field Operations. Mr. Lorig earned his bachelor's degree in supply chain management from Arizona State University and his MBA from Santa Clara University.

MaryBeth Wilkinson, Executive Vice President, Chief Legal Officer and Corporate Secretary

MaryBeth Wilkinson serves as Executive Vice President, Chief Legal Officer and Corporate Secretary for KLA. In this role, she leads the global legal and compliance organization and provides guidance to the board of directors, executive team, and senior leaders. Her legal oversight responsibilities include risk mitigation, corporate governance, litigation, mergers and acquisitions, public disclosure and SEC reporting, investor relations, interactions with regulators and governments, top-level internal investigations, international trade, transactional affairs, and capital market transactions. Before joining KLA in September 2020, she was senior vice president, general counsel and corporate secretary of O-I Glass Inc., and prior to that, she was a Chicago-based partner in an international law firm. Ms. Wilkinson earned her bachelor's degree summa cum laude from Saint Mary's College, Notre Dame, Indiana, with a double major in economics and English writing.

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1. Geopolitical Tensions and Export Controls: KLA Corporation is significantly exposed to the ongoing trade tensions and export control regulations, particularly between the United States and China. China has historically been a substantial market for KLA, accounting for a large portion of its revenue. U.S. export controls, such as those implemented by the Bureau of Industry and Security (BIS), restrict the sale of advanced semiconductor equipment to China, which is projected to reduce KLA's revenue share from China. These regulations create uncertainty and can materially impact the company's financial performance by limiting its access to a key market and disrupting global supply chains.

2. Semiconductor Industry Cyclicality: The semiconductor industry is known for its inherent cyclicality, characterized by periods of growth and contraction in capital spending by customers. KLA's financial performance is highly sensitive to these fluctuations, as reduced demand for electronic devices or tightened credit markets during downturns can lead customers to delay or cancel orders for KLA's equipment.

3. Customer Concentration: KLA relies on a concentrated customer base, including some of the world's largest chipmakers. This reliance means that a reduction in orders, changes in technology roadmaps, or a shift to a competitor's technology by any of these key customers could significantly impact KLA's revenue and operational stability.

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• Process Control Market: KLA holds a dominant market share of approximately 56% in the global semiconductor process control market as of 2024. This market segment accounts for slightly over 10% of the entire global semiconductor equipment market.
• Overall Metrology and Inspection Market: KLA's market share in the global metrology and inspection segment has steadily grown, reaching nearly 63% by 2024.
• Optical Inspection Market: KLA's dominance is even more pronounced in the global optical inspection market, where it has maintained a market share well above 80%, approaching 90% in 2024.
• Advanced Packaging Market: KLA's revenue from advanced packaging is projected to exceed $850 million globally in 2025, an increase from $500 million in 2024. KLA is also anticipated to become the market leader in the global Advanced Wafer-Level Packaging (AWLP) market by 2025.
• Global Semiconductor Equipment Market (Wafer Fab Equipment - WFE): The global sales of semiconductor equipment are forecasted to reach $125.5 billion in 2025, representing a 7.4% increase. In 2024, the WFE market was in the mid to high $90 billion range. KLA aims to increase its WFE market share from 6% in 2021 to over 7.25% by 2026.

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KLA Corporation (KLAC) is expected to drive future revenue growth over the next 2-3 years through several key factors:

1. Increased Investment in Leading-Edge Foundry/Logic and Memory: KLA anticipates revenue growth from increased investments in leading-edge foundry/logic and memory segments. This is primarily fueled by the strong demand for AI and premium mobile applications, driving more complex designs and higher-value wafer volumes.
2. Growth in Advanced Packaging: Advanced packaging is a significant growth catalyst for KLA. The company expects advanced packaging revenue to exceed $925 million in calendar year 2025, representing approximately 70% year-over-year growth. This growth is driven by customer adoption of KLA's advanced packaging portfolio and the increasing complexity of chip designs, particularly for heterogeneous chip integration.
3. AI as a Key Catalyst and Driver of Process Control Intensity: Artificial intelligence (AI) is a crucial enabler for KLA's business. The growing demand for AI chips necessitates higher process control intensity, which directly benefits KLA's solutions. KLA also leverages AI in its own products to enhance performance and reduce customer cost of ownership.
4. Continued Strength and Expansion of the Services Business: KLA's service business has consistently demonstrated strong growth and resilience. Service revenue reached $745 million in the September quarter, up 6% sequentially and 16% year-over-year, highlighting its importance as a stable revenue stream.
5. Outperformance of the Wafer Fab Equipment (WFE) Market: KLA is confident in its ability to outperform the overall Wafer Fab Equipment (WFE) market growth. This outperformance is attributed to KLA's business momentum, expanding market share opportunities, and the increasing process control intensity required at the leading edge across all semiconductor segments.

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Share Repurchases

• KLA executed significant share repurchases, with annual buybacks totaling $3.968 billion in 2022, $1.312 billion in 2023, and $1.736 billion in 2024.
• The company authorized a new $6 billion share repurchase program in June 2022, including a $3 billion Accelerated Share Repurchase completed by December 2022. An additional $5 billion share repurchase authorization was announced in April 2025.
• As of September 30, 2023, $3.45 billion was available for repurchase under the stock repurchase program, with approximately $457 million remaining as of March 31, 2025, before the new $5 billion authorization.

Share Issuance

• KLA's share repurchase programs are partly intended to mitigate the dilutive impact from equity incentive plans and shares issued in connection with its Employee Stock Purchase Plan (ESPP).
• The number of shares outstanding has generally seen a decline over the past few years, with 0.134 billion shares outstanding in 2025, representing a 1.79% decline from 2024.
• As of October 27, 2025, there were 131.39 million shares of common stock outstanding.

Capital Expenditures

• KLA Corporation's capital expenditure (capex) for fiscal year 2025 was -$340.21 million.
• The company continues to prioritize and plans to increase R&D investments to drive market leadership and support technology and product development roadmaps.
• KLA's business performance is significantly influenced by the capital expenditures of semiconductor and electronic device manufacturers.