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KLA
(NASDAQ:KLAC)
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Rating:78Outperform
Price Target:
$303.00
▼(-83.09% Downside)
Action:Reiterated
Date:07/02/26
KLAC scores well primarily on financial quality and momentum: very high margins, strong free-cash-flow conversion, and bullish technical trend support the stock. The latest earnings call reinforced strong demand, share gains, and confident guidance, but the overall score is capped by expensive valuation (high P/E, low yield) and identified near-term margin/expense and geopolitical/regulatory risks.
Positive Factors
High margins and profitability
Sustained very high gross and net margins indicate strong pricing power, differentiated technology and durable operating leverage. High margins support reinvestment in R&D, margin cushions through cycles, and enable superior return generation even if revenue growth moderates.
Negative Factors
Balance-sheet leverage
Meaningful leverage (debt-to-equity ~1.0, net debt modestly above cash) increases financial vulnerability for a cyclical semiconductor-equipment company. Elevated debt can limit agility for large capex, slowdowns, or aggressive buybacks if demand weakens or interest costs rise.
Read all positive and negative factors
Positive Factors
Negative Factors
High margins and profitability
Sustained very high gross and net margins indicate strong pricing power, differentiated technology and durable operating leverage. High margins support reinvestment in R&D, margin cushions through cycles, and enable superior return generation even if revenue growth moderates.
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
$339.06B
Dividend Yield0.58%
Average Volume (3M)11.59M
Price to Earnings (P/E)7.3
Beta (1Y)1.82
Revenue Growth13.43%
EPS Growth28.40%
CountryUS
Employees15,000
SectorTechnology
Sector Strength88
IndustrySemiconductors
Share Statistics
EPS (TTM)3.56
Shares Outstanding1,306,275,300
10 Day Avg. Volume16,213,931
30 Day Avg. Volume11,586,906
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 Cap0.93
Enterprise Value/Revenue24.14
Enterprise Value/Gross Profit39.29
Enterprise Value/Ebitda52.17
Forecast
1Y Price Target
$229.92Price Target Upside-87.17% Downside
Rating ConsensusStrong Buy
Number of Analyst Covering21
EPS Forecast (FY)5.13
Revenue Forecast (FY)$17.18B
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: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 | 8.05B | 7.40B | 5.88B | 6.28B | 5.62B | 4.15B |
| EBITDA | 6.06B | 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 | 6.15B | 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
Neutral
1791.44
Price Trends
208.72
Positive
180.90
Positive
151.70
Positive
Market Momentum
17.10
Positive
49.78
Neutral
48.26
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For KLAC, the sentiment is Neutral. The current price of 1791.44 is above the 20-day moving average (MA) of 243.77, above the 50-day MA of 208.72, and above the 200-day MA of 151.70, indicating a neutral trend. The MACD of 17.10 indicates Positive momentum. The RSI at 49.78 is Neutral, neither overbought nor oversold. The STOCH value of 48.26 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $478.79B | 56.41 | 39.78% | 0.69% | 3.35% | 29.52% | |
78 Outperform | $339.06B | 7.28 | 89.07% | 0.58% | 13.43% | 28.40% | |
78 Outperform | $844.36B | 168.12 | 8.08% | ― | 34.97% | 123.87% | |
78 Outperform | $439.46B | 66.05 | 65.79% | 0.56% | 26.53% | 47.73% | |
72 Outperform | $211.62B | 63.94 | 9.79% | 1.43% | 29.75% | 83.33% | |
63 Neutral | $604.88B | -194.11 | -2.95% | ― | 1.36% | 86.07% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% |
* Technology Sector Average
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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.