KLA Corporation (NASDAQ:KLAC) reported strong third-quarter results that exceeded expectations on both earnings and revenue, but shares dipped more than 2% intra-day today as investors digested a more measured outlook for the current quarter.

The semiconductor equipment maker posted adjusted earnings of $8.41 per share, surpassing analyst estimates of $8.07. Revenue came in at $3.06 billion, slightly above the $3.01 billion forecast and up nearly 30% year-over-year, marking a robust start to 2025.

CEO Rick Wallace noted that the March quarter results were above the midpoint of guidance, reflecting strong execution and momentum in the business.

Looking ahead, KLA projected fourth-quarter revenue in the range of $2.925 billion to $3.225 billion and adjusted earnings per share between $7.75 and $9.31. While the guidance suggests continued profitability, the wide range may have contributed to investor caution.

KLA announced an 11.8% increase to its quarterly dividend, raising it to $1.90 per share starting in May. The company also authorized an additional $5 billion in share repurchases, signaling confidence in long-term growth.