Kulicke and Soffa Industries (KLIC) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue reached $199.6M, up 12.4% sequentially and 20.2% year-over-year, driven by strong demand in General Semiconductor, Memory, Ball Bonding Equipment, and APS, with robust customer sentiment and high utilization across key markets.

• Net income for Q1 2026 was $16.8M, with non-GAAP net income at $23.1M and non-GAAP EPS at $0.44.

• Data center demand, technology transitions, and investments in Power Semiconductor, Advanced Dispense, and Advanced Packaging contributed to growth and improved market reach.

• Management highlighted improved FY26 visibility, ongoing production ramp, and strong new solution demand.

• Gross profit rose 13.6% to $99.0M, with gross margin at 49.6%, down 280 bps year-over-year due to less favorable product mix.

Financial highlights

• Gross margin for Q1 2026 was 49.6%, with non-GAAP operating margin at 12.6% and GAAP net margin at 8.4%.

• Non-GAAP net income was $23.1M, and diluted EPS was $0.32 (GAAP) and $0.44 (non-GAAP).

• Operating expenses (non-GAAP) were $74.2M, and total operating expense was $81.1M GAAP.

• Cash, cash equivalents, and short-term investments totaled $481.1M, representing 43.2% of total assets.

• Adjusted free cash flow was negative $11.6M for Q1 2026, with operating cash flow at $(8.9)M.

Outlook and guidance

• Q2 2026 revenue expected at $230M +/- $10M, with gross margin at 49% and non-GAAP EPS at $0.67 +/- 10%.

• Non-GAAP operating expenses projected at $73M; GAAP EPS guidance is $0.53 +/- 10%.

• Second half of FY 2026 expected to be 15%-20% higher than the first half, with gross margin expected to remain around 49%-50%.

• Fiscal 2026 capital expenditures expected between $10M and $14M, focused on R&D, manufacturing, and IT.

• Liquidity position is sufficient to meet capital requirements for at least the next twelve months.