KLA (KLAC) AI Stock Analysis

• Market Cap: $123.45B
• Dividend Yield: 0.71%
• Average Volume (3M): 921.15K
• Price to Earnings (P/E): 30.8
• Beta (1Y): 1.82
• Revenue Growth: 24.04%
• EPS Growth: 49.69%
• Country: US
• Employees: 15,000
• Sector: Technology
• Sector Strength: 94
• Industry: Semiconductors
• EPS (TTM): 9.38
• Shares Outstanding: 131,961,360
• 10 Day Avg. Volume: 1,127,416
• 30 Day Avg. Volume: 921,154
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 9.91
• Enterprise Value/Gross Profit: 16.18
• Enterprise Value/Ebitda: 22.74
• 1Y Price Target: $957.00
• Price Target Upside: 0.17% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 20

• Rating: 82 Outperform
• Price Target: $1,058.00 ▲(10.74% Upside)

KLA's overall stock score is driven by strong financial performance and positive earnings call outcomes. The company's leadership in advanced packaging and AI infrastructure positions it well for future growth. However, valuation concerns and external challenges like tariffs and reduced demand from China pose risks.

Positive Factors

Financial Performance

KLA delivered strong results above consensus expectations, reflecting continued strength in leading-edge foundry/logic and HBM, combined with accelerating momentum in advanced packaging.

Growth Prospects

KLAC is on track to outperform with management reaffirming that the future could also be a growth year, contrasting with more cautious tones from peers.

Market Performance

The company has diversified end-market exposure through acquisitions, which should enable it to outgrow the overall market and drive an EPS CAGR of 15-20% over the next three years.

Negative Factors

Market Concerns

Some investors have questioned the decline in KLA's reported remaining performance obligation from $8.9B to $7.9B.

Performance Obligations

The next twelve months' remaining performance obligations are estimated at $5.8 billion, down 11% quarter-over-quarter and 4% year-over-year.

Revenue Decline

Estimated TSMC revenue decreased by 23% quarter-over-quarter in the June quarter after two quarters of elevated spending.

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 Control; Specialty Semiconductor Process; PCB, Display and Component Inspection; and Other. The company offers integrated circuit (IC) manufacturing products that comprises wafer inspection and review, and metrology; wafer and substrate defect inspection and metrology; reticle defect inspection and metrology; chemical/materials quality analysis; in situ process management and wafer handling diagnostics for IC and original equipment manufacturer (OEM) manufacturing; software products to provide run-time process control, defect excursion identification, process corrections, and defect classification; and refurbished and remanufactured products. It also provides specialty semiconductor manufacturing, benchtop metrology, surface characterization, and electrical property measurement services for general purpose/ lab applications; etch, plasma dicing, deposition, and other wafer processing technologies and solutions for the semiconductor and microelectronics industry. In addition, the company offers direct imaging, inspection, optical shaping, additive printing, and computer-aided manufacturing and engineering solutions for the PCB market; inspection and electrical testing systems to identify and classify defects, as well as systems to repair defects for the display market; and inspection and metrology systems for quality control and yield improvement in advanced and traditional semiconductor packaging markets. The company was formerly known as KLA-Tencor Corporation and changed its name to KLA Corporation in July 2019. KLA Corporation was incorporated in 1975 and is headquartered in Milpitas, California.

How the Company Makes Money

KLA generates revenue primarily through the sale of its semiconductor manufacturing equipment, including inspection and metrology tools, which are critical for ensuring the quality and precision of semiconductor devices. The company also earns income from software solutions that support data analysis and yield management, which are essential for semiconductor manufacturers aiming to maximize output and minimize defects. Additionally, KLA benefits from ongoing service and support contracts, which provide a steady stream of recurring revenue. Strategic partnerships with major semiconductor manufacturers and technology companies further bolster KLA's financial performance, allowing the company to stay at the forefront of technology advancements and benefit from industry growth.

KLA Financial Statement Overview

Summary

KLA demonstrates strong financial performance with high profitability and revenue growth. The company has a robust gross profit margin of 60.9% and a net profit margin of 33.4%. Revenue growth is significant at 23.9%, and cash flow metrics are solid. However, the balance sheet shows a higher reliance on debt with a debt-to-equity ratio of 1.25, which requires careful management.

Income Statement

KLA demonstrates strong profitability with a gross profit margin of 60.9% and a net profit margin of 33.4% for TTM. The company has shown significant revenue growth of 23.9% from the previous year. EBIT and EBITDA margins are robust at 41.3% and 42.4%, respectively, indicating efficient cost management and operational excellence.

Balance Sheet

The balance sheet reveals a moderate debt-to-equity ratio of 1.25, suggesting a balanced capital structure. Return on Equity stands impressively at 86.6% for TTM, reflecting strong profitability relative to shareholder equity. However, the equity ratio of 29.2% indicates a higher reliance on debt, which could pose risks if not managed carefully.

Cash Flow

KLA's cash flow is strong, with a free cash flow growth rate of 23.6% compared to the previous year. The operating cash flow to net income ratio is commendable at 1.00, showing efficient cash generation from operations. The free cash flow to net income ratio is also healthy at 0.92, affirming the company's solid cash conversion capabilities.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	12.16B	9.81B	10.50B	9.21B	6.92B	5.81B
Gross Profit	7.44B	5.88B	6.28B	5.62B	4.15B	3.36B
EBITDA	5.30B	3.91B	4.50B	4.01B	2.85B	1.83B
Net Income	4.06B	2.76B	3.39B	3.32B	2.08B	1.22B
Balance Sheet
Total Assets	16.07B	15.43B	14.07B	12.60B	10.27B	9.28B
Cash, Cash Equivalents and Short-Term Investments	4.49B	4.50B	3.24B	2.71B	2.49B	1.98B
Total Debt	5.88B	6.82B	6.06B	6.77B	3.55B	3.57B
Total Liabilities	11.38B	12.07B	11.15B	11.20B	6.90B	6.60B
Stockholders Equity	4.69B	3.37B	2.92B	1.40B	3.38B	2.67B
Cash Flow
Free Cash Flow	3.74B	3.03B	3.33B	3.01B	1.95B	1.63B
Operating Cash Flow	4.08B	3.31B	3.67B	3.31B	2.19B	1.78B
Investing Cash Flow	-202.48M	-1.48B	-486.87M	-876.46M	-500.40M	-258.87M
Financing Cash Flow	-3.79B	-1.78B	-2.83B	-2.26B	-1.50B	-1.30B

KLA Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 955.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 955.41 is above the 20-day moving average (MA) of 912.96, above the 50-day MA of 897.14, and above the 200-day MA of 743.83, indicating a bullish trend. The MACD of 11.18 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 96.11 is Negative, 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
KLAC	82 Outperform	$123.45B	30.81	100.78%	0.71%	24.04%	49.69%
AMAT	82 Outperform	$151.06B	22.91	36.37%	0.88%	6.12%	-5.66%
ASML	82 Outperform	$287.83B	28.40	56.14%	0.90%	27.09%	40.94%
LRCX	82 Outperform	$133.24B	25.35	58.24%	0.86%	23.68%	43.16%
TSM	77 Outperform	$1.02T	27.81	33.29%	1.12%	38.65%	―
Sector *	61 Neutral	€6.51B	18.07	3.81%	2.08%	2.67%	-29.74%
INTC	52 Neutral	$95.46B	―	-19.24%	2.10%	-3.72%	-2120.70%

KLA Corporate Events

KLA Announces Board Changes and Dividend Declaration

On August 7, 2025, KLA Corporation announced the retirement of Gary Moore and Emiko Higashi from its Board of Directors, effective at the 2025 annual meeting of stockholders. The Board plans to nominate Tracy Embree and Jason Conley as new directors. Additionally, KLA declared a quarterly cash dividend of $1.90 per share, payable on September 3, 2025, to shareholders of record as of August 18, 2025. These changes reflect KLA’s ongoing commitment to strategic leadership and shareholder value.

The most recent analyst rating on (KLAC) stock is a Buy with a $900.00 price target. To see the full list of analyst forecasts on KLA stock, see the KLAC Stock Forecast page.

KLA Secures New $1.5 Billion Credit Agreement

On July 3, 2025, KLA Corporation entered into a new Credit Agreement with several financial institutions, replacing its previous revolving credit facility from June 8, 2022. The new agreement provides a five-year unsecured revolving credit facility of $1.5 billion, with options for extensions and increases, and includes sustainability-linked pricing components. The facility will support general corporate purposes, including debt repayment, and features flexible borrowing and repayment terms. The agreement also includes customary covenants and events of default provisions, ensuring financial discipline and risk management for KLA.

The most recent analyst rating on (KLAC) stock is a Buy with a $980.00 price target. To see the full list of analyst forecasts on KLA stock, see the KLAC Stock Forecast page.