Semiconductor Equipment

Alright, let me walk you through how I'm seeing the next two quarters for our book of business at KLA. First assumption — revenue keeps compounding in the mid-single-digit range. The four trailing quarters show a clean upward arc: $3.17B, $3.21B, $3.30B, $3.42B, with sequential growth actually accelerating from roughly 1% to 3.6%. Foundry and logic capex tied to AI-driven node transitions continues to feed our process control and yield management backlog, and customers are pulling in metrology intensity as geometries shrink. I'm penciling Q2 around $3.535B and Q3 near $3.65B. Second assumption — gross margin drifts modestly downward into the 60.8–61.0% zone, from 61.1% last quarter, reflecting mix shift toward advanced packaging inspection and a few ramp-related costs in our SPTS and Orbotech lines. Operating margin holds near 41% thanks to disciplined opex. Top risk I'd flag: any pullback in memory capex, particularly DRAM customers digesting HBM-heavy investments, could compress our service revenue tail. A single quarter of foundry pushouts would land directly on our top line. Net income tracks revenue with a steady ~35% margin — no miracles, no cliff. Quality at KLA isn't a slogan; it's a yield oath, and these numbers reflect that discipline.