KLA Corp. (KLA (KLAC)) reported its fiscal fourth-quarter results after Tuesday's closing bell, and while the numbers beat analyst expectations, the market wasn't impressed. The stock took a beating in extended trading, adding to losses from the regular session.

Q4 by the Numbers

KLA posted adjusted earnings of $1.05 per share, edging past the consensus estimate of $1.00 by 5%. Revenue came in at $3.66 billion, also ahead of the $3.6 billion analysts were looking for.

The company highlighted strong cash generation: operating cash flow was $906.4 million for the quarter and $4.14 billion for the full fiscal year. Free cash flow stood at $817.1 million and $3.77 billion, respectively. Capital returns to shareholders totaled $876.3 million for the quarter and $3.35 billion for the year.

CEO Rick Wallace struck an optimistic tone, saying: "KLA's June quarter results reinforce that the trends driving our growth are strengthening, and we see momentum across our business accelerating in the second half of calendar 2026 and continuing through 2027."

Guidance Disappoints

The real story, though, is the forward guidance. For the first quarter, KLA expects adjusted EPS between $1.06 and $1.26, compared to the $1.14 analyst estimate. Revenue is projected in a range of $3.8 billion to $4.2 billion, versus the $3.92 billion consensus. While the midpoint of the revenue guidance is slightly above estimates, the earnings outlook is mixed, and investors apparently wanted more.

Stock Reaction

KLA shares fell 9.60% to $172.48 in Tuesday's extended trading, after already dropping 6.18% during the regular session. The double decline suggests the market is pricing in concerns about near-term headwinds, despite management's upbeat long-term view.