A Business at a Glance
0 of 5 daily views used (5 remaining). Sign up free for 10 daily views, or try AAPL for a full preview.
KLA CORP
KLAC
$281.5B
Mkt Cap
$210.52
-3.75%
KLA CORP (KLAC) has a current P/E ratio of 59.8, compared to its historical median P/E of 18.5. The stock is currently considered Expensive based on its historical valuation range.
KLA CORP (KLAC) has a 5-year average return on invested capital (ROIC) of 62.2%. This indicates strong capital allocation and a potential competitive advantage.
KLA CORP (KLAC) has a market capitalization of $275.0B. It is classified as a mega-cap stock.
Yes, KLA CORP (KLAC) pays a dividend with a trailing twelve-month yield of 0.37%. The company also returns capital through share buybacks, with a buyback yield of 0.78%.
Based on historical P/E analysis, KLA CORP (KLAC) appears expensive. The current P/E of 59.8 is 223% above its historical median of 18.5. The estimated fair value CAGR (P/E method) is 26.1%.
KLA CORP (KLAC) operates in the Optical Instruments & Lenses industry, within the Technology sector.
KLA CORP (KLAC) reported annual revenue of $12.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
KLA Corporation supplies advanced process control and process-enabling equipment and services that enable innovation throughout the semiconductor and electronics manufacturing industries. The company operates through three reportable segments: Semiconductor Process Control, which provides inspection, metrology, and software products for IC, wafer, reticle/mask, and chemical/materials manufacturers; Specialty Semiconductor Process, which develops vacuum deposition and etching tools for MEMS, RF communication, and power semiconductor manufacturers; and PCB and Component Inspection, which enables manufacturers to inspect and test printed circuit boards, IC substrates, and packaged ICs. KLA's business model combines capital equipment sales with a services business that accounted for approximately 22% of fiscal 2025 revenue, providing comprehensive support across its installed base and extending system lifetimes. The company earns revenue primarily through direct sales of products and related service contracts, with international operations representing approximately 89% of total revenues, and serves leading semiconductor, semiconductor-related, and electronic device manufacturers across Asia, the U.S., and Europe. KLA's competitive differentiation stems from its leading technology, comprehensive product portfolio, unique process control software, and deep customer relationships, enabling customers to improve yields, reduce waste and costs, and accelerate technology advancement and production ramps.
【Strong momentum into 2027】 Management expects semiconductor process control systems revenue to grow over 20% in 2026, with the company positioned to outperform the broader wafer equipment market driven by rising process control intensity at the leading edge and significant growth in advanced packaging. The company anticipates accelerating growth in the second half of 2026 and expects 2027 year-over-year growth to exceed 2026 growth rates, supported by strong customer engagement, expanding backlog, and numerous new fab projects under construction. KLA's service business is expected to continue delivering strong growth as systems become more technologically advanced and customers demand higher tool performance and availability, with the company targeting 12%-14% long-term service revenue growth. The company is prioritizing next-generation product development and infrastructure investments to support expected revenue growth, while maintaining its business model designed to deliver 40%-50% incremental operating margin leverage on revenue growth over the long run.
| Metric | Target | Period |
|---|---|---|
| Semiconductor Process Control systems revenue growth | over 20% | Calendar 2026 |
| Advanced packaging systems revenue | approximately $1 billion | Calendar 2026 |
| Wafer equipment market (including advanced packaging) | exceed $140 billion | Calendar 2026 |
| Company revenue growth year-over-year | high teen | Calendar 2026 |
| Calendar 2026 gross margin | approximately 62% ±50 basis points | Calendar 2026 |
Semiconductor Process Control systems revenue growth (Calendar 2026): “the Semiconductor Process Control systems business to grow over 20%”
Advanced packaging systems revenue (Calendar 2026): “We now expect semiconductor process control product portfolio revenue for advanced packaging will grow from approximately $635 million in 2025 to approximately $1 billion in 2026”
Wafer equipment market (including advanced packaging) (Calendar 2026): “We expect the wafer equipment market, which includes advanced packaging, to exceed $140 billion in 2026”
Company revenue growth year-over-year (Calendar 2026): “leading to high teen revenue growth year-over-year”
Calendar 2026 gross margin (Calendar 2026): “our view of gross margins remains unchanged at approximately 62% ± 50 basis points in calendar 2026”
Generated solely from the company's own reports listed below — not from third-party data. Hallucination risk is low. · Sources: 10-K, Q4 FY2026 Earnings Call, Q3 FY2026 Earnings Call, Q2 FY2026 Earnings Call, Q1 FY2026 Earnings Call
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 13.1B | 12.2B | 9.8B | 10.5B | 9.2B | 6.9B |
| Net Income | 4.7B | 4.1B | 2.8B | 3.4B | 3.3B | 2.1B |
| EPS | $3.52 | $3.04 | $2.03 | $2.42 | $2.19 | $1.34 |
| Free Cash Flow | 4.0B | 3.7B | 3.0B | 3.3B | 3.0B | 2.0B |
| ROIC | 0.0% | 65.5% | 44.6% | 73.7% | 71.0% | 56.1% |
| Gross Margin | 61.4% | 60.9% | 60.0% | 59.8% | 61.0% | 59.9% |
| Debt/Equity | 1.01 | 1.25 | 2.19 | 2.02 | 4.75 | 1.02 |
| Dividends/Share | $0.77 | $0.68 | $0.57 | $0.52 | $0.42 | $0.36 |
| Operating Income | 0 | 4.9B | 3.5B | 4.1B | 3.6B | 2.5B |
| Operating Margin | 0.0% | 40.7% | 35.7% | 38.9% | 39.6% | 36.4% |
| ROE | 80.1% | 100.8% | 82.0% | 116.0% | 237.0% | 61.5% |
| Shares Outstanding | 1,306M | 1,337M | 1,362M | 1,403M | 1,515M | 1,554M |
KLA CORP passes 7 of 9 quality checks, indicating strong fundamentals.
KLA CORP trades at 59.8x trailing earnings, compared to its 15-year median P/E of 18.5x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 68.5x vs a median of 17.0x. The company's 5-year average ROIC is 62.2% with a gross margin of 60.3%. Total shareholder yield (dividends + buybacks) is 1.1%. At current prices, the estimated annualized return to fair value is +24.5%.
KLA CORP (KLAC) has a net profit margin of 33.4%. This is a strong margin indicating high profitability.
KLA CORP (KLAC) generated $3.7 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
KLA CORP (KLAC) has a debt-to-equity ratio of 1.25. This indicates moderate leverage.
KLA CORP (KLAC) reported earnings per share (EPS) of $3.04 in its most recent fiscal year.
KLA CORP (KLAC) has a return on equity (ROE) of 100.8%. This indicates the company generates strong returns for shareholders.
KLA CORP (KLAC) has a 5-year average gross margin of 60.3%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 17 years of financial data for KLA CORP (KLAC), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
KLA CORP (KLAC) has a book value per share of $3.51, based on its most recent annual SEC filing.
Based on recent SEC filings and earnings disclosures, Management expects semiconductor process control systems revenue to grow over 20% in 2026, with the company positioned to outperform the broader wafer equipment market driven by rising process control intensity at the leading edge and significant growth in advanced packaging. The company anticipates accelerating growth in the second half of 2026 and expects 2027 year-over-year growth to exceed 2026 growth rates, supported by strong customer engagement, expanding backlog, and numerous new fab projects under construction. KLA's service business is expected to continue delivering strong growth as systems become more technologically advanced and customers demand higher tool performance and availability, with the company targeting 12%-14% long-term service revenue growth. The company is prioritizing next-generation product development and infrastructure investments to support expected revenue growth, while maintaining its business model designed to deliver 40%-50% incremental operating margin leverage on revenue growth over the long run.
Based on recent SEC filings and earnings calls, KLA CORP (KLAC) has provided the following forward guidance: Semiconductor Process Control systems revenue growth: over 20% (Calendar 2026); Advanced packaging systems revenue: approximately $1 billion (Calendar 2026); Wafer equipment market (including advanced packaging): exceed $140 billion (Calendar 2026); Company revenue growth year-over-year: high teen (Calendar 2026); Calendar 2026 gross margin: approximately 62% ±50 basis points (Calendar 2026).
No recent press releases.