KLA's (KLAC) quarterly beat this time around fell short of what investors had hoped, Deutsche Bank said in a note emailed Thursday.

The company on Wednesday reported fiscal Q3 non-GAAP earnings of $8.41 per diluted share on revenue of $3.06 billion. The FactSet consensus was for $8.09 on revenue of $3.01 billion.

The company also set its fiscal Q4 ahead of forecasts, saying it expected non-GAAP diluted earnings of $7.75 to $9.31 per share on revenue of $2.93 billion to $3.23 billion.

Analysts polled by FactSet expect EPS of $8.00 on revenue of $3 billion.

The company's fiscal Q3 revenue provided an upside of around 2% which compares to the average beat of 3% to 4% last year, the firm said.

"While beats/raises are always welcome, we'd flag that the magnitude of the upside from [KLA] this quarter is somewhat lower than what we've become accustomed to," Deutsche Bank said.

Still, the firm noted that the company's solid beat and raise was "no small feat," especially considering the "otherwise volatile and uncertain semis demand environment."

The firm said it was "pleased" to see the resiliency of KLA's business model in such an environment.

Deutsche Bank reiterated its buy rating on the stock and slashed its price target by $60 to $790.

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