KLA Corporation
- Open
- 280.53
- Day high
- 307.15
- Day low
- 279.03
- Prev close
- 278.39
- Volume
- 19.3M
- Mkt cap
- $39.4B
- P/E (TTM)
- 84.9
- EPS (TTM)
- $3.56
- P/B
- 6.8
- P/S
- 3.0
- Yield
- 2.65%
- Per share
- $8.00
- ▼Insiders net selling -$19.7M over the last 3 months (0 open-market buys, 4 sales)
- 🏛Institutions mixed (13F)
KLA Corporation (KLAC) is a Technology company listed on NASDAQ. The stock is up 236% over the past year. Over the trailing 3 months, insiders filed 0 open-market buys and 4 sales (SEC Form 4). Drillr has 2 published research articles covering KLAC.
KLA Corporation (KLAC) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 12 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
KLAC earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Apr 29, 2026 | $9.17 | $9.40 | +2.5% | $3.4B | +1.2% |
| Jan 29, 2026 | $8.79 | $8.85 | +0.7% | $3.3B | +1.5% |
| Oct 29, 2025 | $8.63 | $8.81 | +2.1% | $3.2B | +1.2% |
| Jul 31, 2025 | $8.56 | $9.38 | +9.6% | $3.2B | +3.1% |
| Apr 30, 2025 | $8.09 | $8.41 | +4.0% | $3.1B | +1.8% |
| Jan 30, 2025 | $7.75 | $8.20 | +5.8% | $3.1B | +4.4% |
| Jul 24, 2024 | $6.15 | $6.60 | +7.3% | $2.6B | +1.8% |
| Apr 25, 2024 | $5.01 | $5.26 | +5.0% | $2.4B | +2.1% |
| Jan 25, 2024 | $5.88 | $6.16 | +4.8% | $2.5B | +1.0% |
| Oct 25, 2023 | $5.41 | $5.74 | +6.1% | $2.4B | +1.5% |
| Jul 27, 2023 | $4.85 | $5.40 | +11.3% | $2.4B | +4.3% |
| Jan 26, 2023 | $7.10 | $7.38 | +3.9% | $3.0B | +5.9% |
KLAC insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jun 11, 2026 | WALLACE RICHARD Pofficer: President and CEO | Sell | 4,512 | $2213.37 |
| May 12, 2026 | WALLACE RICHARD Pofficer: President and CEO | Sell | 4,512 | $1794.00 |
| May 12, 2026 | Kirloskar Virendra Aofficer: SVP & Chief Accounting Officer | Sell | 297 | $1879.02 |
| May 12, 2026 | Hanley Jeneanne Michelledirector | Sell | 550 | $1874.71 |
| Feb 6, 2026 | CALDERONI ROBERTdirector | Grant | 11 | — |
| Dec 18, 2025 | Higgins Bren D.officer: EVP & Chief Financial Officer | Sell | 2,254 | $1237.01 |
| Nov 13, 2025 | WALLACE RICHARD Pofficer: President and CEO | Sell | 10,803 | $1203.10 |
| Nov 7, 2025 | McMullen Michael R.director | Grant | 204 | — |
| Nov 7, 2025 | PENG VICTORdirector | Grant | 204 | — |
| Nov 7, 2025 | CALDERONI ROBERTdirector | Grant | 257 | — |
| Nov 7, 2025 | Taylor Susan J.S.director | Grant | 204 | — |
| Nov 7, 2025 | Hanley Jeneanne Michelledirector | Grant | 204 | — |
| Nov 7, 2025 | Samath Jamiedirector | Grant | 204 | — |
| Nov 7, 2025 | Conley Jasondirector | Grant | 204 | — |
| Nov 7, 2025 | Embree Tracy Adirector | Grant | 204 | — |
Source: KLAC SEC Form 4 filings, latest Jun 11, 2026. For informational purposes only — not investment advice.
See the full KLAC insider & 13F page →KLAC research & analysis
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KLA Corporation company profile
Overview
KLA Corporation (NASDAQ:KLAC) is a leading provider of process control and yield management solutions for the semiconductor manufacturing industry. Founded in 1975 and headquartered in Milpitas, California, the company was formerly known as KLA-Tencor Corporation before changing its name in July 2019. KLA has established itself as the dominant player in semiconductor process control equipment, serving as a critical enabler for the production of increasingly complex microchips that power everything from smartphones to artificial intelligence systems.
Business
KLA operates in the semiconductor capital equipment industry, specifically focusing on process control and yield management solutions. The company's core business revolves around helping semiconductor manufacturers detect defects, measure critical dimensions, and ensure quality throughout the chip manufacturing process. The semiconductor manufacturing process is extraordinarily complex, involving hundreds of steps to create microscopic circuits on silicon wafers. As these circuits become smaller and more intricate, manufacturers need sophisticated equipment to inspect and measure their work at each stage. This is where KLA's products become essential - they act as the "quality control inspectors" of the semiconductor factory floor. KLA's business is organized into four main segments: 1. Semiconductor Process Control (approximately 85% of revenue): This is KLA's largest segment, providing wafer inspection, metrology (measurement), and reticle (photomask) inspection systems. These tools scan semiconductor wafers and identify defects as small as a few nanometers - thousands of times smaller than the width of a human hair. The segment serves both foundry/logic customers (who make processors and other logic chips) and memory customers (who make DRAM and NAND flash storage). 2. Specialty Semiconductor Process (approximately 10% of revenue): This segment offers specialized manufacturing tools including etch, deposition, and plasma dicing equipment, as well as benchtop metrology systems for research and development applications. 3. PCB, Display and Component Inspection (approximately 3% of revenue): This segment provides inspection and testing solutions for printed circuit boards, flat panel displays, and semiconductor packaging applications. 4. Other/Services (approximately 2% of revenue): This includes refurbished equipment, spare parts, and maintenance services for KLA's installed base of equipment. The company also has a rapidly growing advanced packaging business, which serves the emerging market for sophisticated chip packaging technologies needed for AI and high-performance computing applications.
Revenue model
KLA generates revenue primarily through product sales of capital equipment to semiconductor manufacturers, with additional recurring revenue from services and spare parts. The company's customers are semiconductor fabrication facilities (fabs) operated by companies like Taiwan Semiconductor Manufacturing Company (TSMC), Samsung, SK Hynix, Micron, and Intel. The business model is characterized by high-value, complex equipment sales with long development cycles and strong customer relationships. A typical KLA inspection or metrology tool can cost anywhere from hundreds of thousands to several million dollars, with customers often purchasing multiple units for a single production line. Several factors influence KLA's profitability and margins: Positive margin drivers include the increasing complexity of semiconductor manufacturing, which requires more sophisticated and expensive process control equipment. As chip geometries shrink to 3nm, 2nm and beyond, the "process control intensity" - the percentage of total fab spending devoted to inspection and metrology - continues to increase. The artificial intelligence boom has created particularly strong demand for advanced logic chips and high-bandwidth memory, both of which require extensive process control. KLA's dominant market position (roughly 4x larger than its nearest competitor) also provides pricing power. Negative margin pressures come from cyclical downturns in semiconductor capital spending, competitive pricing pressure, supply chain cost inflation, and geopolitical trade restrictions. The company faces particular challenges from U.S. export controls on sales to China, which historically represented around 40% of revenue. Currency fluctuations and the need for continuous R&D investment (typically 15-20% of revenue) also impact margins. The services business provides a more stable, recurring revenue stream with higher margins, as customers require ongoing maintenance, spare parts, and upgrades for their installed equipment base. This segment has grown consistently and helps offset the cyclical nature of new equipment sales.
Competitive moat
KLA possesses a strong and durable competitive moat built on several key advantages. The company's most significant moat is its technological leadership and dominant market share in process control equipment, where it holds roughly 50% of the global market - approximately four times larger than its nearest competitor. The semiconductor process control industry has extremely high barriers to entry due to the technical complexity required to detect nanometer-scale defects and measure critical dimensions with atomic-level precision. KLA has spent decades developing proprietary algorithms, optical systems, and electron beam technologies that are deeply integrated into customers' manufacturing processes. The switching costs for semiconductor manufacturers are enormous, as changing process control vendors would require extensive requalification, potential production disruptions, and retraining of personnel. KLA's moat is further strengthened by the mission-critical nature of its products - a single undetected defect can render an entire wafer worthless, making reliability and performance far more important than price. This creates strong customer loyalty and recurring revenue streams through the services business. The company's extensive patent portfolio and continuous R&D investment (typically 15-20% of revenue) help maintain its technological edge. KLA also benefits from network effects, as its large installed base generates valuable data that improves its algorithms and helps develop next-generation products. However, the moat faces some challenges. Large customers like TSMC and Samsung have significant bargaining power and occasionally develop competing technologies in-house. Emerging technologies like artificial intelligence and quantum computing could potentially disrupt traditional inspection methods. Additionally, geopolitical tensions and export restrictions limit KLA's ability to serve certain markets, potentially creating opportunities for competitors in those regions. Overall, KLA's moat remains strong due to the technical complexity of its products, high switching costs, and the critical nature of process control in semiconductor manufacturing, though ongoing investment in R&D is essential to maintain this position.
Risks & safety
KLA demonstrates solid financial stability with manageable debt levels and strong cash generation, though valuation metrics suggest limited margin of safety at current prices. • Liquidity and Solvency: Current ratio of 2.54x indicates strong short-term liquidity. Cash and short-term investments of $1.86 billion provide adequate cushion. Debt-to-equity ratio of 1.52x is elevated but manageable given the company's strong cash flow generation. • Cash Flow Strength: Free cash flow of $990 million in the most recent quarter demonstrates strong cash generation. The company is not burning cash and consistently generates substantial operating cash flows across business cycles. • Valuation Concerns: Trading at 20.7x P/E ratio and 18.1x EV/EBITDA, which appears elevated for a cyclical technology company. Price-to-book ratio of 22.5x suggests limited tangible asset backing. Graham number of $74.68 indicates significant overvaluation relative to conservative metrics. • Other Considerations: Strong market position and recurring services revenue provide some downside protection. However, exposure to semiconductor cycle volatility and China trade restrictions create earnings uncertainty. High return on equity of 27% reflects strong profitability but may not be sustainable through a full cycle.
Recent development
Over the past few years, KLA has pursued several key strategic initiatives based on the artificial intelligence revolution and advancing semiconductor technology. The company has significantly expanded its advanced packaging portfolio, with revenue growing from $400 million in 2023 to an expected $850+ million in 2025. This growth reflects the increasing complexity of AI chip packaging, where KLA has successfully adapted its front-end inspection tools for back-end packaging applications. KLA has also focused on capturing the benefits of increasing process control intensity at leading-edge nodes, particularly 3nm and 2nm technologies. The company has gained approximately 250 basis points of market share in process control over the past five years, with particularly strong gains in e-beam inspection where it doubled revenues and gained 700 basis points of market share. The company has navigated significant geopolitical challenges, adapting to U.S. export controls that reduced China revenue from approximately 40% to around 29% of total revenue in 2025. Despite this headwind, KLA has maintained growth by capturing increased demand from AI infrastructure buildout and leading-edge technology investments. Recent product development has focused on high-bandwidth memory (HBM) and advanced logic applications, where process control requirements are particularly stringent. The company has also strengthened its services business, which grew 13-18% year-over-year in recent quarters, providing more stable recurring revenue. KLA has maintained aggressive capital allocation, implementing a new $5 billion share repurchase authorization and increasing dividends for 16 consecutive years, with a 12% increase in the most recent year. The company targets returning 85% of free cash flow to shareholders while continuing to invest heavily in R&D to maintain technological leadership.
KLAC company profile · for informational purposes only — not investment advice.
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