KLA (KLAC) AI Stock Analysis

• Market Cap: $163.67B
• Dividend Yield: 0.58%
• Average Volume (3M): 989.40K
• Price to Earnings (P/E): 39.1
• Beta (1Y): 1.97
• Revenue Growth: 22.27%
• EPS Growth: 45.32%
• Country: US
• Employees: 15,000
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 8.81
• Shares Outstanding: 131,392,330
• 10 Day Avg. Volume: 1,050,193
• 30 Day Avg. Volume: 989,399
• PEG Ratio: 0.59
• Price to Book (P/B): 25.39
• Price to Sales (P/S): 9.80
• P/FCF Ratio: 31.85
• Enterprise Value/Market Cap: 0.89
• Enterprise Value/Revenue: 11.66
• Enterprise Value/Gross Profit: 18.93
• Enterprise Value/Ebitda: 26.26
• 1Y Price Target: $1,372.72
• Price Target Upside: 8.46% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20
• EPS Forecast (FY): 35.81
• Revenue Forecast (FY): $13.10B

• Rating: 77 Outperform
• Price Target: $1,378.00 ▲(8.88% Upside)

KLA's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust growth in advanced packaging and service revenue, along with record cash flow, position it well for future growth. However, the high P/E ratio and potential risks from U.S. export controls on China slightly temper the overall outlook.

Positive Factors

Revenue Growth

The significant growth in advanced packaging revenue indicates strong demand and market position, supporting long-term revenue expansion.

Cash Flow Generation

Record cash flow and high free cash flow margins demonstrate efficient cash management, providing financial flexibility for future investments.

Service Business Growth

The growth in service revenue reflects strong demand for ongoing support and maintenance, enhancing long-term customer relationships and recurring revenue.

Negative Factors

High Debt Levels

High debt levels can limit financial flexibility and increase risk, potentially impacting the company's ability to invest in growth opportunities.

China Export Controls Impact

Export controls impacting China could reduce revenue from a key market, affecting growth prospects and market share in the region.

Mixed Segment Performance

Reduced demand in certain segments may lead to uneven performance, potentially affecting overall revenue growth and market positioning.

KLA Business Overview & Revenue Model

Company Description

KLA Corporation (KLAC) is a leading global supplier of process control and yield management solutions for the semiconductor and related industries. The company operates primarily in two segments: Semiconductor Process Control and Specialty Semiconductor Process. KLA's core products include advanced inspection and metrology systems, which help manufacturers optimize their production processes and improve yield rates. Additionally, KLA provides software solutions and services that enhance the performance and reliability of semiconductor manufacturing.

How the Company Makes Money

KLA generates revenue primarily through the sale of its semiconductor equipment and related services. The company's key revenue streams include the sale of inspection and metrology tools, which are critical for ensuring quality and precision in semiconductor manufacturing. KLA also earns revenue from software solutions that aid in data analysis and process optimization, as well as from service contracts that provide ongoing support and maintenance for its equipment. Significant partnerships with leading semiconductor manufacturers and technology companies further bolster KLA's earnings by integrating their solutions into high-volume production environments. Additionally, ongoing advancements in semiconductor technology and increasing demand for chips in various applications, such as AI and IoT, contribute positively to KLA's revenue growth.

KLA Financial Statement Overview

Summary

KLA exhibits strong financial health with excellent profitability and cash flow metrics. The income statement shows robust revenue growth and high margins, while the cash flow statement indicates efficient cash management. However, the high debt-to-equity ratio on the balance sheet poses a potential risk.

Income Statement

KLA's income statement shows strong profitability with a consistent gross profit margin above 60% and a net profit margin around 33%. The company has demonstrated positive revenue growth, particularly in the TTM period, indicating a robust growth trajectory. EBIT and EBITDA margins are also healthy, reflecting efficient operational management.

Balance Sheet

The balance sheet reveals a relatively high debt-to-equity ratio, which poses a potential risk. However, the return on equity is impressive, indicating effective use of equity to generate profits. The equity ratio suggests moderate leverage, but the high debt levels warrant caution.

Cash Flow

KLA's cash flow statement is strong, with positive free cash flow growth and a high operating cash flow to net income ratio, indicating good cash generation relative to earnings. The free cash flow to net income ratio is also robust, suggesting efficient cash management.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	12.52B	12.16B	9.81B	10.50B	9.21B	6.92B
Gross Profit	7.72B	7.58B	5.88B	6.28B	5.62B	4.15B
EBITDA	5.56B	5.34B	3.90B	4.50B	4.01B	2.85B
Net Income	4.24B	4.06B	2.76B	3.39B	3.32B	2.08B
Balance Sheet
Total Assets	16.32B	16.07B	15.43B	14.07B	12.60B	10.27B
Cash, Cash Equivalents and Short-Term Investments	4.68B	4.49B	4.50B	3.24B	2.71B	2.49B
Total Debt	6.09B	6.09B	6.82B	6.06B	6.77B	3.55B
Total Liabilities	11.33B	11.38B	12.07B	11.15B	11.20B	6.90B
Stockholders Equity	4.99B	4.69B	3.37B	2.92B	1.40B	3.38B
Cash Flow
Free Cash Flow	3.87B	3.74B	3.03B	3.33B	3.01B	1.95B
Operating Cash Flow	4.25B	4.08B	3.31B	3.67B	3.31B	2.19B
Investing Cash Flow	-441.43M	-202.48M	-1.48B	-486.87M	-876.46M	-500.40M
Financing Cash Flow	-3.83B	-3.79B	-1.78B	-2.83B	-2.26B	-1.50B

KLA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 1265.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 1265.66 is above the 20-day moving average (MA) of 1204.10, above the 50-day MA of 1176.57, and above the 200-day MA of 923.99, indicating a bullish trend. The MACD of 20.77 indicates Negative momentum. The RSI at 60.95 is Neutral, neither overbought nor oversold. The STOCH value of 77.18 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for KLAC.

KLA Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
ADI	78 Outperform	$134.38B	60.12	6.57%	1.44%	16.89%	39.29%
KLAC	77 Outperform	$163.67B	39.11	99.17%	0.58%	22.27%	45.32%
AMAT	77 Outperform	$203.32B	29.61	35.51%	0.69%	4.47%	0.48%
LRCX	77 Outperform	$216.38B	37.96	62.26%	0.56%	25.66%	46.68%
AMD	73 Outperform	$347.47B	106.23	5.32%	―	31.83%	80.45%
INTC	64 Neutral	$175.63B	3,431.13	0.19%	―	-1.49%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

KLA Corporate Events

KLA Announces Cash Dividend Amid Shareholder Meeting

On November 5, 2025, KLA held its annual meeting of stockholders where three proposals were considered, including the election of ten directors, ratification of PricewaterhouseCoopers LLP as the independent auditor, and approval of executive compensation. Notably, Emiko Higashi and Gary Moore ended their terms, with Michael McMullen appointed as Chair of the Compensation and Talent Committee. Additionally, on November 6, 2025, KLA announced a cash dividend of $1.90 per share, payable on December 2, 2025, reflecting the company’s ongoing commitment to returning value to shareholders.