Kulicke and Soffa (KLIC) Q4 Earnings: What To Expect

The end of the earnings season is always a good time to take a step back and see who shined (and who not so much). Let’s take a look at how semiconductor manufacturing stocks fared in Q3, starting with Applied Materials .

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was in line.

Luckily, semiconductor manufacturing stocks have performed well with share prices up 36.3% on average since the latest earnings results.

Applied Materials

Founded in 1967 as the first company to develop tools for other businesses in the semiconductor industry, Applied Materials is the largest provider of semiconductor wafer fabrication equipment.

Applied Materials reported revenues of $6.8 billion, down 3.5% year on year. This print exceeded analysts’ expectations by 2.2%. Overall, it was a satisfactory quarter for the company with a beat of analysts’ EPS estimates but an increase in its inventory levels.

“As AI adoption drives substantial investment in advanced semiconductors and wafer fab equipment, Applied Materials delivered its sixth consecutive year of growth in fiscal 2025,” said Gary Dickerson, President and CEO.

Interestingly, the stock is up 42.8% since reporting and currently trades at $319.59.

Best Q3: Teradyne

Sporting most major chip manufacturers as its customers, Teradyne is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Teradyne reported revenues of $769.2 million, up 4.3% year on year, outperforming analysts’ expectations by 3.3%. The business had a stunning quarter with a solid beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 55.8% since reporting. It currently trades at $225.

Weakest Q3: Entegris

With fabs representing the company’s largest customer type, Entegris supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Entegris reported revenues of $807.1 million, flat year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.

Interestingly, the stock is up 22% since the results and currently trades at $115.35.

Read our full analysis of Entegris’s results here.

Photronics

Sporting a global footprint of facilities, Photronics is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Photronics reported revenues of $215.8 million, down 3.1% year on year. This result topped analysts’ expectations by 5.5%. It was an exceptional quarter as it also produced a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 36.1% since reporting and currently trades at $34.96.

Read our full, actionable report on Photronics here, it’s free.

Kulicke and Soffa

Headquartered in Singapore, Kulicke & Soffa is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $177.6 million, down 2.1% year on year. This print surpassed analysts’ expectations by 4.4%. Overall, it was an exceptional quarter as it also recorded a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

The stock is up 60.8% since reporting and currently trades at $56.76.

Read our full, actionable report on Kulicke and Soffa here, it’s free.

Quarterly earnings results are a good time to check in on a company’s progress, especially compared to its peers in the same sector. Today we are looking at Kulicke and Soffa and the best and worst performers in the semiconductor manufacturing industry.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was in line.

Luckily, semiconductor manufacturing stocks have performed well with share prices up 36.6% on average since the latest earnings results.

Kulicke and Soffa

Headquartered in Singapore, Kulicke & Soffa is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $177.6 million, down 2.1% year on year. This print exceeded analysts’ expectations by 4.4%. Overall, it was an exceptional quarter for the company with a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

Lester Wong, Kulicke & Soffa's Interim Chief Executive Officer and Chief Financial Officer, stated, "We continue to focus on multiple technology engagements and are increasingly encouraged by improving end market dynamics and order activity. Our global operations and supply chain teams are preparing for increased customer demand over the coming quarters."

Interestingly, the stock is up 62.8% since reporting and currently trades at $57.46.

Best Q3: Teradyne

Sporting most major chip manufacturers as its customers, Teradyne is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Teradyne reported revenues of $769.2 million, up 4.3% year on year, outperforming analysts’ expectations by 3.3%. The business had a stunning quarter with an impressive beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 58.2% since reporting. It currently trades at $228.40.

Weakest Q3: Entegris

With fabs representing the company’s largest customer type, Entegris supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Entegris reported revenues of $807.1 million, flat year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.

Interestingly, the stock is up 24.2% since the results and currently trades at $117.45.

Read our full analysis of Entegris’s results here.

KLA Corporation

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation is the leading supplier of equipment used to measure and inspect semiconductor chips.

KLA Corporation reported revenues of $3.21 billion, up 13% year on year. This number topped analysts’ expectations by 1.1%. It was a strong quarter as it also recorded a decent beat of analysts’ adjusted operating income and EPS estimates.

The stock is up 26.9% since reporting and currently trades at $1,568.

Read our full, actionable report on KLA Corporation here, it’s free.

Marvell Technology

Moving away from a low margin storage device management chips in one of the biggest semiconductor business model pivots of the past decade, Marvell Technology is a fabless designer of special purpose data processing and networking chips used by data centers, communications carriers, enterprises, and autos.

Marvell Technology reported revenues of $2.07 billion, up 36.8% year on year. This result was in line with analysts’ expectations. It was a satisfactory quarter as it also logged a beat of analysts’ EPS estimates.

Marvell Technology pulled off the fastest revenue growth among its peers. The stock is down 13.4% since reporting and currently trades at $80.53.

Read our full, actionable report on Marvell Technology here, it’s free.

What Happened?

A number of stocks jumped in the afternoon session after industry giant Taiwan Semiconductor Manufacturing Co. posted stronger-than-expected quarterly results, fueling optimism about sustained demand for artificial intelligence (AI) hardware. 

As the world's largest contract chipmaker, TSMC's performance is often seen as a key indicator for the entire tech industry. The company reported record fourth-quarter revenue, surpassing Wall Street estimates, driven by robust demand for advanced chips used in AI applications. 

This positive report has created a ripple effect across the sector, boosting shares of other semiconductor companies and equipment suppliers like ASML, Nvidia, and AMD. Investors are interpreting TSMC's success and its plans to increase capital spending as a strong signal that the AI-driven upcycle for semiconductors is resilient and likely to continue.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Semiconductor Manufacturing company Nova jumped 6.9%. Is now the time to buy Nova? Access our full analysis report here, it’s free.
• Memory Semiconductors company Seagate Technology jumped 3.7%. Is now the time to buy Seagate Technology? Access our full analysis report here, it’s free.
• Semiconductor Manufacturing company Kulicke and Soffa jumped 4.5%. Is now the time to buy Kulicke and Soffa? Access our full analysis report here, it’s free.
• Analog Semiconductors company MACOM jumped 2.8%. Is now the time to buy MACOM? Access our full analysis report here, it’s free.
• Analog Semiconductors company Vishay Intertechnology jumped 5.4%. Is now the time to buy Vishay Intertechnology? Access our full analysis report here, it’s free.

Zooming In On Nova (NVMI)

Nova’s shares are extremely volatile and have had 37 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The previous big move we wrote about was 13 days ago when the stock gained 6.3% on the news that a broad rally in semiconductor stocks kicked off the new year, driven by continued investor enthusiasm for artificial intelligence (AI). 

The move was part of a wider "risk-on" appetite that saw the Nasdaq Composite surge early in the session. Investors rotated back into high-growth tech stocks, with the semiconductor industry appearing poised to anchor the market's trajectory. Market analysts noted that the bullish themes from the previous year, particularly around AI and tech, were carrying forward into the new year. This sentiment was supported by the view that the chipmaking industry would remain supply-constrained as companies continued to build out the new infrastructure required for AI.

Nova is up 25.3% since the beginning of the year, and at $435.13 per share, has set a new 52-week high. Investors who bought $1,000 worth of Nova’s shares 5 years ago would now be looking at an investment worth $5,567.

What Happened?

A number of stocks jumped in the afternoon session after a broader market rally drove investor optimism in artificial intelligence and big tech stocks. 

The S&P 500, Dow Jones, and Nasdaq all pushed higher, approaching record levels set late last year. Much of the positive momentum was linked to the technology sector, with a particular focus on companies advancing artificial intelligence, a key theme at the annual CES trade show in Las Vegas. This continued a powerful trend from 2025, when AI-related developments were a primary catalyst for the market's bull run. The upbeat sentiment was further supported by hopes for easier monetary policy from the Federal Reserve following a weaker-than-expected US Services PMI reading.

The stock market overreacts to news, and big price drops can present good opportunities to buy high-quality stocks.

Among others, the following stocks were impacted:

• Semiconductor Manufacturing company IPG Photonics jumped 3%. Is now the time to buy IPG Photonics? Access our full analysis report here, it’s free for active Edge members.
• Analog Semiconductors company Magnachip jumped 3.2%. Is now the time to buy Magnachip? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Kulicke and Soffa jumped 4.1%. Is now the time to buy Kulicke and Soffa? Access our full analysis report here, it’s free for active Edge members.
• Analog Semiconductors company Impinj jumped 7.3%. Is now the time to buy Impinj? Access our full analysis report here, it’s free for active Edge members.
• Semiconductor Manufacturing company Semtech jumped 4%. Is now the time to buy Semtech? Access our full analysis report here, it’s free for active Edge members.

Zooming In On Impinj (PI)

Impinj’s shares are extremely volatile and have had 36 moves greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful but not something that would fundamentally change its perception of the business.

The biggest move we wrote about over the last year was 11 months ago when the stock dropped 25.9% on the news that the company reported disappointing fourth quarter results, with revenue slightly missing Wall Street estimates and next-quarter revenue, EBITDA, and earnings guidance falling significantly short. EBITDA also missed, suggesting profits are under pressure, while earnings came in roughly in line. Management is anticipating near-term headwinds, suggesting the company is not out of the woods yet​. Overall, this quarter could have been better.

Impinj is up 7.4% since the beginning of the year, but at $193.10 per share, it is still trading 20.2% below its 52-week high of $241.91 from October 2025. Investors who bought $1,000 worth of Impinj’s shares 5 years ago would now be looking at an investment worth $4,281.

The end of an earnings season can be a great time to discover new stocks and assess how companies are handling the current business environment. Let’s take a look at how KLA Corporation and the rest of the semiconductor manufacturing stocks fared in Q3.

The semiconductor industry is driven by demand for advanced electronic products like smartphones, PCs, servers, and data storage. The need for technologies like artificial intelligence, 5G networks, and smart cars is also creating the next wave of growth for the industry. Keeping up with this dynamism requires new tools that can design, fabricate, and test chips at ever smaller sizes and more complex architectures, creating a dire need for semiconductor capital manufacturing equipment.

The 14 semiconductor manufacturing stocks we track reported a very strong Q3. As a group, revenues beat analysts’ consensus estimates by 3.3% while next quarter’s revenue guidance was 0.6% below.

Luckily, semiconductor manufacturing stocks have performed well with share prices up 11.2% on average since the latest earnings results.

KLA Corporation

Formed by the 1997 merger of the two leading semiconductor yield management companies, KLA Corporation is the leading supplier of equipment used to measure and inspect semiconductor chips.

KLA Corporation reported revenues of $3.21 billion, up 13% year on year. This print exceeded analysts’ expectations by 1.1%. Overall, it was a strong quarter for the company with a decent beat of analysts’ adjusted operating income estimates and a beat of analysts’ EPS estimates.

"KLA produced a strong all-around September quarter performance above the guidance midpoints. These results reflect double-digit year-over-year revenue and EPS growth, and KLA is on pace for solid relative revenue growth compared to our industry in calendar 2025," said Rick Wallace, president and CEO of KLA Corporation.

Unsurprisingly, the stock is down 1.5% since reporting and currently trades at $1,217.

We think KLA Corporation is a good business, but is it a buy today? Read our full report here, it’s free for active Edge members.

Best Q3: Teradyne

Sporting most major chip manufacturers as its customers, Teradyne is a US-based supplier of automated test equipment for semiconductors as well as other technologies and devices.

Teradyne reported revenues of $769.2 million, up 4.3% year on year, outperforming analysts’ expectations by 3.3%. The business had a stunning quarter with a solid beat of analysts’ adjusted operating income estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The market seems happy with the results as the stock is up 34% since reporting. It currently trades at $193.49.

Weakest Q3: Entegris

With fabs representing the company’s largest customer type, Entegris supplies products that purify, protect, and generally ensure the integrity of raw materials needed for advanced semiconductor manufacturing.

Entegris reported revenues of $807.1 million, flat year on year, exceeding analysts’ expectations by 0.6%. Still, it was a slower quarter as it posted revenue guidance for next quarter missing analysts’ expectations significantly and EPS in line with analysts’ estimates.

As expected, the stock is down 10.8% since the results and currently trades at $84.34.

Read our full analysis of Entegris’s results here.

Photronics

Sporting a global footprint of facilities, Photronics is a manufacturer of photomasks, templates used to transfer patterns onto semiconductor wafers.

Photronics reported revenues of $215.8 million, down 3.1% year on year. This number surpassed analysts’ expectations by 5.5%. It was an exceptional quarter as it also recorded a beat of analysts’ EPS estimates and revenue guidance for next quarter exceeding analysts’ expectations.

The stock is up 24.4% since reporting and currently trades at $31.95.

Read our full, actionable report on Photronics here, it’s free for active Edge members.

Kulicke and Soffa

Headquartered in Singapore, Kulicke & Soffa is a provider of production equipment and tools used to assemble semiconductor devices

Kulicke and Soffa reported revenues of $177.6 million, down 2.1% year on year. This print beat analysts’ expectations by 4.4%. Overall, it was an exceptional quarter as it also logged a significant improvement in its inventory levels and a beat of analysts’ EPS estimates.

The stock is up 27.9% since reporting and currently trades at $45.14.

Read our full, actionable report on Kulicke and Soffa here, it’s free for active Edge members.

Over the past six months, Kulicke and Soffa has been a great trade, beating the S&P 500 by 21.5%. Its stock price has climbed to $46.76, representing a healthy 35.4% increase. This was partly due to its solid quarterly results, and the performance may have investors wondering how to approach the situation.

Is there a buying opportunity in Kulicke and Soffa, or does it present a risk to your portfolio? Get the full breakdown from our expert analysts, it’s free for active Edge members.

Why Is Kulicke and Soffa Not Exciting?

We’re happy investors have made money, but we don't have much confidence in Kulicke and Soffa. Here are three reasons you should be careful with KLIC and a stock we'd rather own.

1. Long-Term Revenue Growth Flatter Than a Pancake

Reviewing a company’s long-term sales performance reveals insights into its quality. Any business can put up a good quarter or two, but many enduring ones grow for years. Unfortunately, Kulicke and Soffa struggled to consistently increase demand as its $654.1 million of sales for the trailing 12 months was close to its revenue five years ago. This wasn’t a great result and signals it’s a lower quality business. Semiconductors are a cyclical industry, and long-term investors should be prepared for periods of high growth followed by periods of revenue contractions.

2. Shrinking Operating Margin

Operating margin is a key measure of profitability. Think of it as net income - the bottom line - excluding the impact of taxes and interest on debt, which are less connected to business fundamentals.

Looking at the trend in its profitability, Kulicke and Soffa’s operating margin decreased by 27.7 percentage points over the last five years. Kulicke and Soffa’s performance was poor no matter how you look at it - it shows that costs were rising and it couldn’t pass them onto its customers. Its operating margin for the trailing 12 months was breakeven.

3. EPS Trending Down

Analyzing the long-term change in earnings per share (EPS) shows whether a company's incremental sales were profitable – for example, revenue could be inflated through excessive spending on advertising and promotions.

Sadly for Kulicke and Soffa, its EPS declined by 26.9% annually over the last five years while its revenue was flat. This tells us the company struggled because its fixed cost base made it difficult to adjust to choppy demand.

Final Judgment

Kulicke and Soffa isn’t a terrible business, but it isn’t one of our picks. With its shares outperforming the market lately, the stock trades at 31.8× forward P/E (or $46.76 per share). This valuation tells us it’s a bit of a market darling with a lot of good news priced in - we think there are better stocks to buy right now. We’d recommend looking at a safe-and-steady industrials business benefiting from an upgrade cycle.