KLA Corporation (KLAC) reported a strong second quarter Thursday, beating Wall Street expectations on both the top and bottom lines. But investors weren't impressed, sending shares down nearly 9% after hours as they digested the company's forward guidance.

The Numbers: KLA posted earnings of $8.85 per share, topping the analyst consensus of $8.80. Revenue came in at $3.3 billion, also beating expectations of $3.25 billion.

CEO Rick Wallace highlighted the achievement: "KLA delivered a record quarter and calendar 2025 for revenue, non-GAAP operating income, and free cash flow generation."

He credited the performance to "our differentiated product portfolio and solid company execution in an environment where the relevance of process control at the leading edge for foundry/logic and memory is increasing."

Looking Ahead: The issue appears to be guidance. KLA expects third-quarter adjusted earnings between $8.30 and $9.86 per share, with the midpoint below the $8.93 analyst estimate. Revenue is projected at $3.2 billion to $3.5 billion, compared to the $3.28 billion consensus.

The Market Reaction: KLAC stock fell 8.73% to $1,537.63 in extended trading following the report.