KLA, a supplier of chipmaking tools, announces a $7 billion share buyback and dividend increase
KLA Corporation on Thursday announced a new $7 billion stock buyback program and a 21% increase in its quarterly dividend while reaffirming its financial outlook for the current quarter.
The new share repurchase program does not have a specified timeframe and comes in addition to the company’s existing buyback authorization, which had about $3.94 billion remaining as of December 31, 2025.
Shares of KLA have surged more than 20% so far this year after climbing nearly 93% in the previous year. The strong performance has been driven largely by heavy investment in data centre infrastructure for artificial intelligence and the semiconductor chips required to power AI systems.
Chip manufacturers have significantly increased orders for KLA’s semiconductor fabrication tools, which are used in producing AI processors and memory chips. This surge in demand helped the company exceed Wall Street expectations for both revenue and profit in its second-quarter results announced in January.
KLA also said it is raising its quarterly dividend to $2.30 per share from $1.90 per share. At the same time, the company maintained its financial guidance for the March quarter, forecasting revenue of about $3.35 billion, with a possible variation of $150 million either way. Adjusted earnings per share are expected to be about $9.08, with a possible variation of 78 cents.
Chief executive Rick Wallace said in a statement that the company’s products and services are key enablers of the artificial intelligence ecosystem and that KLA remains well positioned to deliver sustainable market outperformance in the coming years.
The rapid global expansion of AI infrastructure, a major growth driver for KLA, has absorbed a significant portion of the world’s memory chip supply. This surge in demand has encouraged semiconductor manufacturers to expand production capacity, further boosting demand for KLA’s equipment and supporting the company’s sales growth.
