Q2 performance "double super" guidance strong, KLA Corporation (KLAC.US) plunges after-hours: Valuation risk concerns following AI frenzy?

KLA Corporation (KLAC.US) disclosed its second quarter financial report for the fiscal year 2026 after the U.S. stock market on January 29th. The company achieved a record revenue of $3.30 billion in this quarter, an increase of approximately 7.2% compared to the same period last year, surpassing the market's previous general expectation of $3.26 billion. On the profit side, KLA's GAAP net profit was $1.15 billion, equivalent to a diluted earnings per share (EPS) of $8.68, compared to $6.16 in the same period last year. Excluding specific items, the Non-GAAP diluted EPS reached $8.85, exceeding the analysts' average expectation of $8.80. This strong performance is mainly attributed to the large-scale expansion of AI infrastructure globally, especially the strong demand for advanced logic chips and DRAM driven by HBM in the foundry sector. In addition, the company's cash flow performance remains robust, with operating cash flow of $1.37 billion and free cash flow (FCF) reaching $1.26 billion in this quarter. Looking ahead, the guidance for the performance of the third quarter of fiscal year 2026 shows a positive outlook, with revenue expected to be around $3.35 billion and Non-GAAP EPS estimated to be around $9.08. CEO Rick Wallace emphasized in the financial report meeting that KLA's dominant position in semiconductor process control makes it a core beneficiary for semiconductor manufacturers transitioning to more precise process nodes. However, despite the core financial indicators and future outlook being better than expected, KLA's stock price experienced a significant decline in after-hours trading, falling by over 8%, reflecting market profit-taking sentiment due to the company's rapid appreciation in recent times. Market analysis generally believes that this deviation between "positive performance, falling stock price" is mainly due to investor concerns about KLA's valuation being at historical highs and caution about the company's revenue growth rate slowing down for three consecutive quarters. Additionally, although the free cash flow reached $1.26 billion in this quarter, there is still a slight deviation compared to the extremely high expectations given by some sell-side institutions. Against the backdrop of cyclical fluctuations in the current semiconductor industry, the capital market is evidently reevaluating the company's growth resilience going forward.