This report does not constitute a rating action. KLA Corp.?s revenue for the first half reached $6.5 billion, a 10% year-over-year increase that exceeded the midpoint of management?s guidance for the first two quarters. Three converging structural trends are behind this: the surge in demand for leading-node chips, rising process control intensity particularly at advanced nodes, and rapid expansion of the advanced packaging market. These trends support our projections of high-single-digit percent growth in fiscal 2026 and low-teens in fiscal 2027. We project EBITDA margin will decline to 46.3% for fiscal 2026, a decrease of 80 basis points from 2025. We attribute this softening to product mix and supply constraints, notably for DRAM. Tariffs on raw materials and specialized subcomponents
