KLA (KLAC)
NASDAQ:KLAC
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KLA
(NASDAQ:KLAC)
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Rating:83Outperform
Price Target:
$2,114.00
▲(18.01% Upside)
Action:ReiteratedDate:04/30/26
KLAC scores well on high profitability and cash generation, reinforced by a strong technical uptrend and a positive earnings call with confident guidance and capital return commitment. The main offset is valuation (high P/E with low dividend yield), plus some near-term margin and execution headwinds (DRAM/tariffs, supply-chain scaling, and elevated OpEx).
Positive Factors
High profitability and margins
Sustained high gross and EBITDA margins reflect differentiated inspection/metrology products with pricing power and limited commoditization. High margins support durable reinvestment in R&D, buffer cyclical revenue swings, and underpin long-term cash generation that funds capex and shareholder returns.
Negative Factors
Meaningful leverage and net debt
Debt near parity with equity reduces financial flexibility in a cyclical semiconductor equipment market. Ongoing large buybacks and dividends can keep leverage elevated, increasing vulnerability to demand troughs, raising refinancing and interest risks, and constraining discretionary capex if revenues soften.
Read all positive and negative factors
Positive Factors
Negative Factors
High profitability and margins
Sustained high gross and EBITDA margins reflect differentiated inspection/metrology products with pricing power and limited commoditization. High margins support durable reinvestment in R&D, buffer cyclical revenue swings, and underpin long-term cash generation that funds capex and shareholder returns.
Read all positive factors
KLA (KLAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$229.43B
Dividend Yield0.58%
Average Volume (3M)916.15K
Price to Earnings (P/E)34.9
Beta (1Y)1.84
Revenue Growth13.44%
EPS Growth28.40%
CountryUS
Employees15,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)9.40
Shares Outstanding131,076,610
10 Day Avg. Volume800,964
30 Day Avg. Volume916,152
Financial Highlights & Ratios
PEG Ratio0.59
Price to Book (P/B)25.39
Price to Sales (P/S)9.80
P/FCF Ratio31.85
Enterprise Value/Market Cap1.06
Enterprise Value/Revenue18.53
Enterprise Value/Gross Profit30.01
Enterprise Value/Ebitda41.13
Forecast
1Y Price Target
$1,918.29Price Target Upside7.08% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)36.67
Revenue Forecast (FY)$13.42B
KLA Business Overview & Revenue Model
Company Description
KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide. It operates through four segments: Semiconductor Process Contr...
How the Company Makes Money
KLA primarily makes money by selling capital equipment used for semiconductor process control—most notably wafer inspection and metrology systems. These tools are purchased by semiconductor manufacturers (including foundries, logic manufacturers, ...
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 Earnings Call Summary
Earnings Call Date:Apr 29, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Jul 23, 2026
Earnings Call Sentiment Positive
The call conveyed a strongly positive operational and financial picture: revenue and EPS beat expectations, robust market-share gains (especially in advanced packaging and process control), sizable capital returns, and upgraded long-term growth targets. Notable near-term headwinds include memory-related gross margin pressure (DRAM-related component costs and tariffs), some supply-chain scaling constraints in the first half, and elevated operating expenses. Management nevertheless expressed confidence in backlog visibility, 2026–2027 industry momentum, and the company’s ability to scale resources to meet demand.Positive Updates
Revenue Growth
March quarter revenue of $3.415 billion, up 4% sequentially and 11% year-over-year; revenue above guidance midpoint ($3.35B).
Negative Updates
Gross Margin Headwinds from Memory Pricing and Tariffs
Management cited elevated DRAM shipping costs for image processing components as a recurring headwind, estimating roughly a 100 basis-point negative impact on gross margin over the next several quarters; tariffs also represent an incremental gross-margin headwind (management referenced a combined ~50–100 bps impact).
Read all updates
Q3-2026 Updates
Positive
Negative
Revenue Growth
March quarter revenue of $3.415 billion, up 4% sequentially and 11% year-over-year; revenue above guidance midpoint ($3.35B).
Read all positive updates
Company Guidance
KLA guided June‑quarter revenue of $3.575 billion ± $200 million, gross margin of 61.75% ± 1.0 percentage point (reiterating ~62% ±50 bps for calendar 2026), non‑GAAP diluted EPS of $9.87 ± $1 and GAAP diluted EPS of $9.66 ± $1 on ~131.4 million diluted shares; operating expenses are forecast ≈ $665 million (with R&D/SG&A historically ~$389M/$281M and ~+$15M sequential growth expected through the year), other income/(expense) net ≈ $25 million expense for the quarter, and a planning tax rate of 14.5%. For 2026 KLA expects quarter‑to‑quarter revenue growth, semiconductor process‑control systems growth >20% (company revenue running to high‑teens % YoY), the wafer equipment market to exceed $140 billion, June‑quarter semi process‑control mix ≈ 82% foundry/logic and 18% memory (memory: ~84% DRAM, 16% NAND), a ~100‑bp gross‑margin headwind from elevated DRAM ship costs, and continued strong cash returns (targeting >90% of free cash flow to capital return; incremental $7B buyback authorization noted).KLA Financial Statement Overview
Summary
Income Statement
91
Very Positive
Balance Sheet
72
Positive
Cash Flow
84
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 13.10B | 12.16B | 9.81B | 10.50B | 9.21B | 6.92B |
| Gross Profit | 8.09B | 7.58B | 5.88B | 6.28B | 5.62B | 4.15B |
| EBITDA | 5.90B | 5.34B | 3.90B | 4.50B | 4.01B | 2.85B |
| Net Income | 4.67B | 4.06B | 2.76B | 3.39B | 3.32B | 2.08B |
Balance Sheet | ||||||
| Total Assets | 16.87B | 16.07B | 15.43B | 14.07B | 12.60B | 10.27B |
| Cash, Cash Equivalents and Short-Term Investments | 4.96B | 4.49B | 4.50B | 3.24B | 2.71B | 2.49B |
| Total Debt | 5.89B | 6.09B | 6.82B | 6.06B | 6.77B | 3.55B |
| Total Liabilities | 11.04B | 11.38B | 12.07B | 11.15B | 11.20B | 6.90B |
| Stockholders Equity | 5.83B | 4.69B | 3.37B | 2.92B | 1.40B | 3.38B |
Cash Flow | ||||||
| Free Cash Flow | 4.01B | 3.74B | 3.03B | 3.33B | 3.01B | 1.95B |
| Operating Cash Flow | 4.40B | 4.08B | 3.31B | 3.67B | 3.31B | 2.19B |
| Investing Cash Flow | -1.34B | -202.48M | -1.48B | -486.87M | -876.46M | -500.40M |
| Financing Cash Flow | -3.14B | -3.79B | -1.78B | -2.83B | -2.26B | -1.50B |
KLA Technical Analysis
Positive
1791.44
Price Trends
1516.37
Positive
1419.71
Positive
1213.83
Positive
Market Momentum
81.34
Negative
68.81
Neutral
87.21
Negative
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 1791.44 is above the 20-day moving average (MA) of 1598.55, above the 50-day MA of 1516.37, and above the 200-day MA of 1213.83, indicating a bullish trend. The MACD of 81.34 indicates Negative momentum. The RSI at 68.81 is Neutral, neither overbought nor oversold. The STOCH value of 87.21 is Negative, 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 |
|---|---|---|---|---|---|---|---|
83 Outperform | $229.43B | 34.87 | 89.07% | 0.58% | 13.44% | 28.40% | |
81 Outperform | $322.47B | 34.22 | 65.79% | 0.56% | 26.53% | 47.73% | |
77 Outperform | $196.39B | 45.73 | 7.92% | 1.43% | 25.91% | 74.58% | |
76 Outperform | $577.94B | 80.54 | 7.18% | ― | 34.34% | 163.27% | |
72 Outperform | $313.07B | 31.26 | 38.90% | 0.69% | 2.15% | 27.46% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $474.86B | -14.70 | -2.95% | ― | 1.36% | 86.07% |
* Technology Sector Average
KLAC
KLA
1,750.35
1,057.44
152.61%
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KLA Corporate Events
Business Operations and StrategyStock BuybackDividends
KLA Highlights Strategy and Capital Returns at Investor Day
Positive
Mar 12, 2026
KLA Corporation held an investor day on March 12, 2026, featuring presentations from its top executives and providing shareholders with updates on the company’s strategy and financial policies. The materials from the event are available on t...
Business Operations and StrategyDividends
KLA Declares Regular Quarterly Dividend, Reinforcing Shareholder Returns
Positive
Feb 5, 2026
On February 5, 2026, KLA Corporation announced that its board of directors declared a regular quarterly cash dividend of $1.90 per share on its common stock, payable on March 3, 2026, to shareholders of record as of the close of business on Februa...
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.