KLA CORPKLAC

KLA CORP Earnings Per Share Disclosure

10-KFiled Aug 8, 20252 min read
NET INCOME PER SHARE
Basic net income per share is calculated by dividing net income available to common stockholders by the weighted-average number of shares of common stock outstanding during the period. Diluted net income per share is calculated by using the weighted-average number of shares of common stock outstanding during the period, increased to include the number of additional shares of common stock that would have been outstanding if the shares of common stock underlying our outstanding dilutive RSUs had been issued. The dilutive effect of outstanding RSUs is reflected in diluted net income per share by application of the treasury stock method. In addition, the shares delivered under the ASR Agreements discussed in Note 11 “Stock Repurchase Program” in the fourth quarter of fiscal 2022 and second quarter of fiscal 2023 resulted in a reduction of outstanding shares used to determine our weighted-average common shares outstanding for purposes of calculating basic and diluted earnings per share for those respective fiscal years.
The following table sets forth the computation of basic and diluted net income per share attributable to KLA:
(In thousands, except per share amounts)Year Ended June 30,
202520242023
Numerator:
Net income attributable to KLA$4,061,643 $2,761,896 $3,387,277 
Denominator:
Weighted-average shares - basic, excluding unvested RSUs133,030 135,345 139,483 
Effect of dilutive RSUs and options720 842 752 
Weighted-average shares - diluted133,750 136,187 140,235 
Basic net income per share attributable to KLA$30.53 $20.41 $24.28 
Diluted net income per share attributable to KLA$30.37 $20.28 $24.15 
Anti-dilutive securities excluded from the computation of diluted net income per share— 358

About Earnings Per Share Disclosures

The earnings per share disclosure breaks down the calculation from net income to both basic and diluted EPS, revealing the full impact of a company's capital structure on per-share economics. The reconciliation between basic and diluted share counts exposes how many stock options, RSUs, convertible securities, and warrants are potentially dilutive to existing shareholders.

Key signals: a widening gap between basic and diluted shares indicates growing dilution from equity compensation or convertible instruments. Anti-dilutive securities excluded from the diluted calculation deserve attention — they represent latent dilution that will materialize if the stock price rises. Watch for the effect of share buybacks on per-share metrics: EPS growth driven primarily by repurchases rather than income growth signals weakening fundamentals. Compare year-over-year changes in the diluted share count against equity compensation expense to assess whether management is effectively managing dilution.

Other Available Disclosures

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