KLA (KLAC)
NASDAQ:KLAC
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KLA
(NASDAQ:KLAC)
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Rating:75Outperform
Price Target:
$1,881.00
▲(8.90% Upside)
Action:ReiteratedDate:03/13/26
The score is driven primarily by excellent underlying financial performance (best-in-class margins and strong free cash flow) and a solid, optimistic earnings outlook. These strengths are partially offset by a softer near-term technical picture and a relatively expensive valuation, with moderate leverage and near-term margin/supply headwinds as additional risks.
Positive Factors
Industry-leading margins
KLA's sustained high gross and EBIT margins reflect durable pricing power, differentiated inspection/metrology IP, and operating scale. Such structural profitability supports reinvestment in R&D, funds shareholder returns, and provides a margin buffer versus peers through industry cycles.
Negative Factors
Moderate leverage on balance sheet
Elevated leverage amplifies earnings cyclicality and limits financial flexibility in downturns. Even with strong cash flow and investment-grade ratings, higher net debt relative to equity constrains scope for large M&A or aggressive buybacks if industry conditions deteriorate.
Read all positive and negative factors
Positive Factors
Negative Factors
Industry-leading margins
KLA's sustained high gross and EBIT margins reflect durable pricing power, differentiated inspection/metrology IP, and operating scale. Such structural profitability supports reinvestment in R&D, funds shareholder returns, and provides a margin buffer versus peers through industry cycles.
Read all positive factors
KLA (KLAC) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$226.40B
Dividend Yield0.58%
Average Volume (3M)958.23K
Price to Earnings (P/E)34.9
Beta (1Y)1.88
Revenue Growth22.27%
EPS Growth45.32%
CountryUS
Employees15,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)8.85
Shares Outstanding131,076,610
10 Day Avg. Volume751,274
30 Day Avg. Volume958,227
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 Cap1.03
Enterprise Value/Revenue18.21
Enterprise Value/Gross Profit29.43
Enterprise Value/Ebitda39.28
Forecast
1Y Price Target
$1,741.70Price Target Upside0.84% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering22
EPS Forecast (FY)36.58
Revenue Forecast (FY)$13.41B
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:Jan 29, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Apr 23, 2026
Earnings Call Sentiment Positive
The call presented a strong financial and operational performance picture: record revenue, double-digit top-line growth, substantial EPS expansion, industry-leading margins, robust free cash flow, and continued share gains in process control and advanced packaging. Management provided a constructive 2026 outlook (mid-single digit company growth and market outperformance) while flagging near-term headwinds — chiefly elevated DRAM costs that are expected to pressure gross margins (~75–100 bps in 2026) and supply/lead-time constraints that limit first-half shipments. On balance, the positives (scaleable profitability, cash generation, market share momentum, and strong guidance cadence) materially outweigh the manageable near-term challenges.Positive Updates
Record 2025 Revenue and Strong Top‑Line Growth
Full-year 2025 revenue grew 17% year-over-year to a record $12.745 billion; December-quarter revenue was $3.3 billion, above the guidance midpoint.
Negative Updates
DRAM Cost Headwind to Gross Margins
Rapidly escalating DRAM prices for image processing computers are a near-term headwind. Management expects this to be transitory but to persist through 2026, creating an estimated ~75–100 basis point negative impact on gross margins for the calendar year.
Read all updates
Q2-2026 Updates
Positive
Negative
Record 2025 Revenue and Strong Top‑Line Growth
Full-year 2025 revenue grew 17% year-over-year to a record $12.745 billion; December-quarter revenue was $3.3 billion, above the guidance midpoint.
Read all positive updates
Company Guidance
KLA guided March-quarter revenue of $3.35 billion ± $150 million with non‑GAAP diluted EPS of $9.80 ± $0.78 and GAAP diluted EPS of $8.85 ± $0.78 based on ~131.7 million diluted shares; semiconductor process-control mix assumptions: foundry logic ~60% and memory ~40% (memory split ~85% DRAM / 15% NAND). Quarterly gross margin guidance is 61.75% ± 1.0 percentage point, with company‑level 2026 gross margins modeled at ~62% ± 50 bps (noting a transitory DRAM cost headwind of roughly 75–100 bps for the year); March-quarter operating expenses are forecasted at ~$645 million with OpEx expected to grow ~$15 million sequentially through 2026. Other income/expense is expected to be about $25 million per quarter, the planning tax rate for 2026 is 14.5%, and KLA expects 2026 revenue to grow mid‑single digits versus 2025 (2025 revenue was $12.745 billion) while the broader WFE market is seen rising to the low ~$120 billion range and total WFE + advanced packaging to the mid‑$130 billion range (advanced packaging ≈ $12 billion).KLA Financial Statement Overview
Summary
Income Statement
92
Very Positive
Balance Sheet
72
Positive
Cash Flow
88
Very Positive
| Breakdown | TTM | Jun 2025 | Jun 2024 | Jun 2023 | Jun 2022 | Jun 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 12.74B | 12.16B | 9.81B | 10.50B | 9.21B | 6.92B |
| Gross Profit | 7.89B | 7.58B | 5.88B | 6.28B | 5.62B | 4.15B |
| EBITDA | 5.91B | 5.34B | 3.90B | 4.50B | 4.01B | 2.85B |
| Net Income | 4.56B | 4.06B | 2.76B | 3.39B | 3.32B | 2.08B |
Balance Sheet | ||||||
| Total Assets | 16.72B | 16.07B | 15.43B | 14.07B | 12.60B | 10.27B |
| Cash, Cash Equivalents and Short-Term Investments | 5.21B | 4.49B | 4.50B | 3.24B | 2.71B | 2.49B |
| Total Debt | 6.28B | 6.09B | 6.82B | 6.06B | 6.77B | 3.55B |
| Total Liabilities | 11.25B | 11.38B | 12.07B | 11.15B | 11.20B | 6.90B |
| Stockholders Equity | 5.47B | 4.69B | 3.37B | 2.92B | 1.40B | 3.38B |
Cash Flow | ||||||
| Free Cash Flow | 4.38B | 3.74B | 3.03B | 3.33B | 3.01B | 1.95B |
| Operating Cash Flow | 4.77B | 4.08B | 3.31B | 3.67B | 3.31B | 2.19B |
| Investing Cash Flow | -1.17B | -202.48M | -1.48B | -486.87M | -876.46M | -500.40M |
| Financing Cash Flow | -2.99B | -3.79B | -1.78B | -2.83B | -2.26B | -1.50B |
KLA Technical Analysis
Positive
1727.26
Price Trends
1480.88
Positive
1382.05
Positive
1187.66
Positive
Market Momentum
42.20
Negative
69.59
Neutral
93.33
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 1727.26 is above the 20-day moving average (MA) of 1506.82, above the 50-day MA of 1480.88, and above the 200-day MA of 1187.66, indicating a bullish trend. The MACD of 42.20 indicates Negative momentum. The RSI at 69.59 is Neutral, neither overbought nor oversold. The STOCH value of 93.33 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 |
|---|---|---|---|---|---|---|---|
80 Outperform | $323.13B | 34.75 | 62.59% | 0.56% | 25.66% | 46.68% | |
75 Outperform | $226.40B | 34.87 | 95.22% | 0.58% | 22.27% | 45.32% | |
73 Outperform | $171.54B | 45.73 | 7.92% | 1.43% | 16.89% | 39.29% | |
72 Outperform | $315.71B | 31.26 | 38.90% | 0.69% | 4.47% | 0.48% | |
71 Outperform | $385.82B | 80.54 | 7.18% | ― | 34.34% | 163.27% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
55 Neutral | $309.90B | ― | -0.26% | ― | -0.47% | 98.20% |
* Technology Sector Average
KLAC
KLA
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159.67%
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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.