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KLA
(NASDAQ:KLAC)
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Rating:70Outperform
Price Target:
$210.00
▼(-0.25% Downside)
Action:Upgraded
Date:07/29/26
KLAC scores well on financial performance and earnings outlook, supported by high margins, strong free cash flow, improving leverage, and confident guidance tied to advanced packaging and services growth. Offsetting factors are a weak near-term technical setup (below 20/50-day averages) and a demanding valuation (P/E ~51.8 with a modest ~0.42% yield).
Positive Factors
High margins and strong cash generation
KLA’s sustained ~60% gross margins and improving net margin (~36% in FY2026), plus large free cash flow (~$3.77B), indicate durable profitability and internal funding for R&D, capex and shareholder returns, supporting resilience across semiconductor cycles.
Negative Factors
Exposure to memory pricing cycles
Meaningful near‑term revenue mix from memory (guidance noted memory share) makes KLA sensitive to DRAM price swings and procurement costs. Persistent memory pricing weakness can compress tool demand and margins, creating multi-quarter earnings volatility tied to a single end‑market.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and strong cash generation
KLA’s sustained ~60% gross margins and improving net margin (~36% in FY2026), plus large free cash flow (~$3.77B), indicate durable profitability and internal funding for R&D, capex and shareholder returns, supporting resilience across semiconductor cycles.
Read all positive factors
KLA Key Performance Indicators (KPIs)
Any
Revenue by Geography
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Breaks down revenue across different regions, revealing where the company is strongest and where it may face risk or growth potential due to local economic conditions or market share shifts.
Data provided by:
The Fly
The FlyKLA (KLAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$238.81B
Dividend Yield0.44%
Average Volume (3M)13.60M
Price to Earnings (P/E)49.6
Beta (1Y)1.77
Revenue Growth11.74%
EPS Growth20.58%
CountryUS
Employees15,200
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.68
Shares Outstanding1,306,275,300
10 Day Avg. Volume10,504,044
30 Day Avg. Volume13,595,687
Financial Highlights & Ratios
PEG Ratio3.99
Price to Book (P/B)62.32
Price to Sales (P/S)29.14
P/FCF Ratio105.04
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$238.68Price Target Upside13.37% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering21
EPS Forecast (FY)5.48
Revenue Forecast (FY)$18.05B
KLA Business Overview & Revenue Model
Company Description
KLA Corporation specializes in creating, manufacturing, and distributing advanced solutions vital for process control, process optimization, and yield enhancement throughout the global semiconductor and broader electronics industries. The company ...
How the Company Makes Money
KLA makes money primarily by selling semiconductor process control equipment and associated software and services used in wafer fabs. The core revenue stream is the sale of capital equipment—inspection systems (to find pattern and wafer defects) a...
KLA Earnings Call Summary
Earnings Call Date:Jul 28, 2026
(Q4-2026)
| % Change Since: |
Next Earnings Date:Oct 28, 2026
Earnings Call Sentiment Positive
The call conveyed strong operational and financial performance (record revenue, robust margins, high free cash flow, accelerating advanced packaging and services) and management upgraded the industry outlook and provided confident guidance. The main negatives were memory pricing headwinds, tariff impacts and earlier supply‑chain/long lead‑time constraints that limited H1 shipments and pressured near‑term margins. Overall, the positives (revenue & EPS beat, significant FCF and raised TAM/guidance plus strong advanced packaging and services momentum) materially outweigh the headwinds.Positive Updates
Record Revenue and Strong EPS
Revenue of $3.66 billion (record) — up 7% sequentially and 15% year‑over‑year. Non‑GAAP diluted EPS $1.05 and GAAP diluted EPS $1.04, both at the upper end of guidance.
Negative Updates
Memory Pricing Headwinds and Margin Pressure
Management cited elevated memory procurement costs and a challenging memory pricing environment that reduced gross margin by roughly ~100 basis points (likely a bit more) in recent quarters and may continue into 2027 before normalizing.
Read all updates
Q4-2026 Updates
Positive
Negative
Record Revenue and Strong EPS
Revenue of $3.66 billion (record) — up 7% sequentially and 15% year‑over‑year. Non‑GAAP diluted EPS $1.05 and GAAP diluted EPS $1.04, both at the upper end of guidance.
Read all positive updates
Company Guidance
KLA guided September-quarter revenue of $4.0 billion, plus or minus $200 million (i.e., $3.8–$4.2B), with semiconductor foundry/logic to be roughly 73% and memory ~27% of Semiconductor Process Control systems revenue to semiconductor customers (memory = ~90% DRAM / 10% NAND); gross margin was forecast at 62.5% ±1 ppt, operating expenses about $690 million, other income/expense net roughly $25 million expense, and a planning tax rate of 14.5%; non‑GAAP diluted EPS was guided to $1.16 ± $0.10 (GAAP $1.14 ± $0.10) based on ~1.312 billion fully diluted shares. Management reiterated second‑half 2026 revenue is expected to be ~20% above the first half, raised the 2026 wafer‑equipment market outlook to the low $150 billion range (mid‑20% growth vs. ~ $120B in 2025) with 2027 consensus near ~$190B, and flagged key seculars driving upside including advanced‑packaging process‑control revenue now expected at ~ $1.1B in 2026 (up >70% YoY) and service growth targets of ~13–15% long‑term (quarterly services were $820M, +17% YoY).KLA Financial Statement Overview
Summary
Income Statement
86
Very Positive
Balance Sheet
70
Positive
Cash Flow
78
Positive
| Breakdown | Jun 2026 | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 13.58B | 12.16B | 9.81B | 10.50B | 9.21B |
| Gross Profit | 8.32B | 7.40B | 5.88B | 6.28B | 5.62B |
| EBITDA | 5.76B | 5.34B | 3.90B | 4.50B | 4.01B |
| Net Income | 4.83B | 4.06B | 2.76B | 3.39B | 3.32B |
Balance Sheet | |||||
| Total Assets | 17.95B | 16.07B | 15.43B | 14.07B | 12.60B |
| Cash, Cash Equivalents and Short-Term Investments | 4.90B | 4.49B | 4.50B | 3.24B | 2.71B |
| Total Debt | 5.89B | 6.09B | 6.82B | 6.06B | 6.77B |
| Total Liabilities | 11.60B | 11.38B | 12.07B | 11.15B | 11.20B |
| Stockholders Equity | 6.35B | 4.69B | 3.37B | 2.92B | 1.40B |
Cash Flow | |||||
| Free Cash Flow | 3.77B | 3.74B | 3.03B | 3.33B | 3.01B |
| Operating Cash Flow | 4.14B | 4.08B | 3.31B | 3.67B | 3.31B |
| Investing Cash Flow | -1.19B | -202.48M | -1.48B | -486.87M | -876.46M |
| Financing Cash Flow | -3.39B | -3.79B | -1.78B | -2.83B | -2.26B |
KLA Technical Analysis
Positive
210.52
Price Trends
221.46
Negative
194.77
Positive
163.14
Positive
Market Momentum
-11.94
Positive
44.28
Neutral
34.10
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLAC, the sentiment is Positive. The current price of 210.52 is above the 20-day moving average (MA) of 208.31, below the 50-day MA of 221.46, and above the 200-day MA of 163.14, indicating a neutral trend. The MACD of -11.94 indicates Positive momentum. The RSI at 44.28 is Neutral, neither overbought nor oversold. The STOCH value of 34.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KLAC.
KLA Risk Analysis
KLA disclosed 39 risk factors in its most recent earnings report. KLA reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
KLA Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $403.07B | 47.49 | 39.78% | 0.36% | 3.35% | 29.52% | |
74 Outperform | $776.41B | 154.59 | 8.08% | ― | 34.97% | 123.87% | |
71 Outperform | $178.96B | 54.35 | 9.79% | 1.12% | 29.75% | 83.33% | |
70 Outperform | $238.81B | 49.63 | 89.07% | 0.38% | 11.74% | 20.58% | |
66 Neutral | $366.44B | 50.61 | 66.97% | 0.34% | 26.02% | 38.85% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
52 Neutral | $454.97B | -42.75 | -10.76% | ― | 7.47% | 55.56% |
* Technology Sector Average
KLAC
KLA
195.45
107.67
122.67%
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KLA Corporate Events
Business Operations and StrategyRegulatory Filings and ComplianceStock Split
KLA Announces Ten-for-One Forward Stock Split Approval
Positive
Jun 12, 2026
KLA Corporation announced that its board approved a ten-for-one forward stock split of its common stock on May 7, 2026, implemented via an amendment to its Restated Certificate of Incorporation filed with the Delaware Secretary of State. The move ...
DividendsStock Split
KLA Announces Ten-for-One Stock Split and Dividend Boost
Positive
May 7, 2026
On May 7, 2026, KLA Corporation said its board had approved a ten-for-one forward stock split of its common shares, increasing authorized stock from 500 million to 5 billion and issuing nine additional shares for each one held as of June 4. The sp...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.