KLAC · 10-Q · 2026Q3 · Full report

Services Revenue and Installed Base

KLA CORP · 2026-10-29 · Importance 44 · Surprise 24

KLA’s services business accounted for approximately 20% of total revenue in the first quarter of fiscal 2027 and has grown consistently year over year. Services are generated largely through recurring, subscription-like maintenance and support contracts that help customers maximize tool uptime, productivity, and life. Demand from legacy semiconductor markets also supports the service business, while service revenue generally depends on the installed tool base, utilization, and contract renewals.

Key facts

• Services accounted for approximately 20% of KLA's total revenues in Q1 FY2027. source
• KLA's service revenue increased 4% sequentially, reflecting support requirements from higher product shipments and growth in the installed base of tools. source
• KLA's service revenue increased 14% year over year, reflecting support requirements from higher product shipments and growth in the installed base of tools. source
• KLA's services revenue is generated largely from recurring subscription-like contracts that provide maintenance and other services to maximize customer uptime, productivity, and tool life. source
• KLA's service revenue is typically a function of the number and utilization of systems installed at customer sites, and is also affected by service-contract renewals, the types of systems serviced, and foreign-exchange fluctuations. source
• KLA's Semiconductor Process Control revenue growth also benefited from higher service revenue associated with support for higher product shipments and growth in its installed base of tools. source