KLA Tops Q2 Estimates on AI Chip Tool Demand, Shares Drop 7% After-Hours

KLA Corp (KLAC) beat Q2 revenue and earnings estimates on January 29, 2026, as surging demand for AI chip fabrication tools drove sales, but shares fell 7% in extended trading due to elevated pre-earnings expectations. Revenue reached $3.3B vs. $3.25B expected; adjusted EPS was $8.85 vs. $8.80 forecast. The company projects Q3 revenue of $3.35B (+/- $150M) and EPS of $9.08 (+/- $0.78), slightly above consensus. Analysts note growth appears steady, not accelerating, amid U.S. export restrictions and China’s push for domestic semiconductor equipment. “Stock had already sprinted into the print,” said Michael Ashley Schulman of Running Point Capital Advisors. Peer Lam Research also reported strong tool demand, highlighting sector-wide tailwinds despite geopolitical headwinds.