MILPITAS, Calif. - KLA Corporation (NASDAQ: KLAC ) reported better-than-expected third quarter results but saw its shares drop 2% in after-hours trading Wednesday.

The semiconductor equipment maker posted adjusted earnings per share of $8.41, surpassing analyst estimates of $8.07. Revenue for the quarter reached $3.06 billion, topping the consensus forecast of $3.01 billion and marking a 29.8% increase year-over-year.

"KLA’s March quarter results were above the midpoint of our guidance ranges and established a strong start to the calendar year," said Rick Wallace, president and CEO of KLA Corporation.

For the fourth quarter, KLA expects revenue between $2.925 billion and $3.225 billion. The company forecasts adjusted EPS of $7.75 to $9.31,3.

In a positive development for shareholders, KLA announced it will raise its quarterly dividend by 11.8% to $1.90 per share starting in May 2025. The company also authorized an additional $5 billion for share repurchases.

The company noted that while global trade dynamics are creating uncertainty, it has not yet seen changes in customer demand for 2025.