KLA Corporation (NASDAQ:KLAC) gained 1.3% on Thursday, outperforming the broader technology sector as the Nasdaq 100 slipped 0.4%, after the semiconductor equipment manufacturer unveiled a $7 billion share repurchase program and increased its dividend by 21%.
The new buyback authorization adds to an existing program that still had $3.944 billion available as of December 31, 2025. KLA also lifted its quarterly dividend to $2.30 per share from $1.90, marking the company’s 17th consecutive year of dividend increases.
The announcements were made during KLA’s 2026 Investor Day in New York City, where executives outlined the company’s strategy and introduced a new 2030 Target Model. The company also reiterated its financial guidance for the March 2026 quarter.
“KLA’s 2026 Investor Day comes at an exciting time and provides us with an opportunity to explain how KLA is uniquely positioned to continue to benefit from the current semiconductor and AI growth trends,” said Rick Wallace, President and Chief Executive Officer. “Today’s announcement of the 17th consecutive increase in our quarterly dividend and a new supplemental $7 billion share repurchase authorization reinforces our confidence in the current business environment, the growing relevance of KLA in semiconductor manufacturing and our longstanding commitment to disciplined capital allocation.”
KLA also reaffirmed its previously issued outlook for the March quarter.