KLIC Q2 Earnings Call Highlights TCB Capacity Expansion

Kulicke and Soffa Industries, Inc. KLIC used its fiscal second-quarter 2026 earnings call to frame a faster demand recovery and a larger commitment to advanced packaging capacity.

Earnings of $1.20 per share beat the Zacks Consensus Estimate of $1.00. Revenues of $330.41 million topped the $310 million consensus.

Kulicke and Soffa Industries, Inc. Price, Consensus and EPS Surprise

Kulicke and Soffa Industries, Inc. price-consensus-eps-surprise-chart | Kulicke and Soffa Industries, Inc. Quote

KLIC Sees a Broader Demand Recovery

Interim CEO and CFO Lester Wong said demand improved faster than management had expected, with customer sentiment strong and utilization above average across the company’s largest served markets.

General Semiconductor revenues increased 19.4% sequentially to $148.9 million, while memory shipments rose 93% to $31.3 million. Automotive and Industrial shipments climbed 63%, driven mainly by high-I/O and power-related packaging demand.

Wong said China utilization was about 92%, with strength also visible in Korea, Japan and Taiwan. Southeast Asia remained softer, while North America and Europe showed improvement.

Kulicke & Soffa Builds for TCB Growth

Interim CEO and CFO Lester Wong positioned Fluxless ThermoCompression bonding as the centerpiece of KLIC’s advanced packaging expansion. Management expects fiscal 2026 TCB revenues to exceed $100 million and grow at least 70% sequentially.

KLIC plans to expand Advanced Solutions production capacity to support approximately $400 million in annual TCB system sales. The capacity increase is expected to be substantially available during the first half of fiscal 2027.

The company expects $20 million of capital expenditures for the expansion, with $12 million deployed in fiscal 2026. Wong linked the investment to growing engagement from IDMs, foundries, OSATs and fabless customers.

KLIC Broadens Its Packaging Pipeline

Interim CEO and CFO Lester Wong said logic and heterogeneous packaging should drive most near-term TCB growth. KLIC also delivered its first HBM system in December, and that tool remained in qualification.

The company is increasing resources for HBM, panel-level architecture and hybrid bonding. Wong said hybrid bonding remains several years from broad adoption, leaving TCB as the current production solution for complex heterogeneous applications.

Vertical Wire is positioned as a longer-term memory opportunity, with more meaningful contribution expected from fiscal 2027 onward. KLIC is also advancing new power semiconductor, memory and dispense systems.

Kulicke & Soffa Sets a Higher Operating Pace

Interim CEO and CFO Lester Wong guided fiscal third-quarter revenues to approximately $310 million, with gross margin around 48%. Non-GAAP earnings are targeted at $1 per share.

Non-GAAP operating expenses are expected to reach $85 million. Wong attributed the increase to variable incentive compensation, sales commissions and critical headcount supporting advanced packaging programs.

Management also expects fiscal fourth-quarter revenues to increase 5% to 10% sequentially. Wong said visibility had improved across both the core business and Advanced Solutions through the rest of calendar 2026.

KLIC Q&A Tests the Capacity Bet

A TD Cowen analyst asked which customers were driving TCB demand. Interim CEO and CFO Lester Wong said growth was broadening across IDMs, foundries and OSATs, with engagement also extending to fabless customers.

A Steelhead Securities analyst questioned whether the $400 million capacity target reflected share gains or market growth. Wong said KLIC expected both, citing additional logic qualifications, potential HBM entry and broader customer adoption.

A Needham analyst asked whether the higher revenue level could be sustained. Wong reinforced management’s fiscal fourth-quarter sequential growth outlook and described business strength as broad-based.

Kulicke & Soffa Keeps Execution Central

Management’s tone combined confidence in demand with a clear focus on execution. Interim CEO and CFO Lester Wong emphasized production expansion, targeted hiring and continued research and development investment.

The company’s priorities remain converting customer interest into TCB growth, supporting core-market capacity additions and advancing longer-duration packaging technologies without abandoning cost discipline.

KLIC’s Zacks Signals Remain Mixed

KLIC carries a Zacks Rank #3 (Hold), indicating a neutral near-term earnings estimate revision signal. The stock has a Momentum Score of A, but Value, Growth and VGM Score of F. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Zacks Style Scores are designed to complement the Zacks Rank, with A and B scores representing more favorable characteristics. KLIC’s profile therefore shows strong momentum but weaker value, growth and combined VGM readings. The Zacks Rank can change as analyst estimates are revised after the reported results.


 

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