KLA (NASDAQ:KLAC – Get Free Report) announced its earnings results on Tuesday. The semiconductor company reported $1.05 earnings per share (EPS) for the quarter, beating the consensus estimate of $1.00 by $0.05, FiscalAI reports. KLA had a net margin of 35.66% and a return on equity of 91.89%. The business had revenue of $3.66 billion for the quarter, compared to analyst estimates of $3.61 billion. During the same quarter last year, the business earned $0.94 earnings per share. The company’s revenue for the quarter was up 15.2% compared to the same quarter last year. KLA updated its Q1 2027 guidance to 1.060-1.260 EPS.
Here are the key takeaways from KLA’s conference call:
- Record June-quarter results: Revenue reached $3.66 billion, up 7% sequentially and 15% year over year, while earnings and profitability came in above the midpoint of guidance.
- AI-driven demand is strengthening: KLA cited accelerating hyperscale data-center investment, leading-edge logic and memory growth, HBM adoption, and advanced packaging as drivers of rising process-control intensity. The company expects second-half 2026 revenue to grow approximately 20% over the first half and significant growth to continue in 2027.
- Outlook was raised: KLA now expects the 2026 wafer-equipment market, including advanced packaging, to reach the low-$150 billion range, up from its prior $140 billion-plus estimate. Advanced-packaging process-control revenue is forecast at approximately $1.1 billion, up more than 70% year over year.
- September-quarter guidance signals continued momentum: Revenue is expected at $4.0 billion, plus or minus $200 million, with gross margin guided to 62.5% and non-GAAP diluted EPS to $1.16, plus or minus $0.10. Backlog is expected to reach roughly $12.5 billion, supporting visibility into late 2027.
- Cost pressures remain: Higher memory prices and tariff-related costs are weighing on gross margins, with management estimating the memory headwind at more than 100 basis points and expecting it to continue through 2027, although new-product pricing and operating leverage should provide offsets.
KLA Stock Performance
Shares of KLA stock traded down $11.65 on Wednesday, hitting $179.15. The stock had a trading volume of 2,928,105 shares, compared to its average volume of 11,489,982. The company has a current ratio of 3.03, a quick ratio of 2.11 and a debt-to-equity ratio of 1.01. KLA has a 52-week low of $83.22 and a 52-week high of $307.37. The company’s 50 day moving average price is $224.25 and its 200 day moving average price is $180.95. The stock has a market cap of $234.02 billion, a price-to-earnings ratio of 50.74, a P/E/G ratio of 1.93 and a beta of 1.41.
KLA Cuts Dividend
More KLA News
Here are the key news stories impacting KLA this week:
- Positive Sentiment: KLA reported fiscal Q4 non-GAAP EPS of $1.05, above the approximately $1.00–$1.02 consensus, while revenue rose 15.2% year over year to $3.66 billion. Operating cash flow was $906.4 million and free cash flow was $817.1 million. KLA fiscal 2026 fourth-quarter and full-year results
- Positive Sentiment: Management forecast fiscal Q1 2027 revenue of $3.8 billion to $4.2 billion and EPS of $1.06 to $1.26. The revenue midpoint and EPS midpoint are above Wall Street expectations, supported by continued artificial-intelligence infrastructure investment and improving wafer-fabrication-equipment demand. KLA forecasts upbeat quarter on sustained AI investment
- Positive Sentiment: Several analysts remained constructive. Citi reiterated a Buy rating with a $290 target, while JPMorgan raised its target to $238 and Cantor Fitzgerald reaffirmed Overweight with a $325 target. Needham also maintained Buy with a $270 target. KLA analyst rating and price target
- Neutral Sentiment: The earnings reaction highlights very high expectations for AI-related semiconductor equipment stocks. Although results and guidance were positive, analysts described the quarter as a “skinny” beat and a frustrating report, suggesting investors wanted a larger upside surprise.
- Negative Sentiment: Revenue of $3.66 billion was slightly below one estimate of $3.67 billion, and the stock’s high valuation leaves less room for execution concerns. Unusually heavy put-option activity before the report also signaled expectations for substantial volatility. KLA stock reaction to fourth-quarter earnings
Analyst Ratings Changes
KLAC has been the subject of several research reports. Bank of America boosted their price objective on KLA from $210.00 to $317.00 and gave the stock a “buy” rating in a research note on Tuesday, June 23rd. JPMorgan Chase & Co. raised their target price on shares of KLA from $200.00 to $238.00 and gave the stock an “overweight” rating in a research note on Wednesday. Cantor Fitzgerald reissued an “overweight” rating and issued a $325.00 price objective on shares of KLA in a report on Wednesday. Wolfe Research boosted their price objective on shares of KLA from $180.00 to $200.00 and gave the company an “outperform” rating in a report on Friday, April 10th. Finally, TD Cowen restated a “buy” rating and set a $260.00 price target (up from $200.00) on shares of KLA in a research note on Thursday, July 9th. Twenty equities research analysts have rated the stock with a Buy rating and ten have issued a Hold rating to the company’s stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and a consensus price target of $218.75.
Check Out Our Latest Analysis on KLA
Insider Activity at KLA
In other KLA news, CFO Bren D. Higgins sold 27,701 shares of KLA stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total value of $7,359,878.69. Following the transaction, the chief financial officer directly owned 263,472 shares in the company, valued at approximately $70,001,875.68. This trade represents a 9.51% decrease in their position. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. Also, CEO Richard P. Wallace sold 45,120 shares of the business’s stock in a transaction on Thursday, June 11th. The shares were sold at an average price of $221.34, for a total transaction of $9,986,725.44. Following the completion of the transaction, the chief executive officer directly owned 713,830 shares in the company, valued at $157,996,990.71. This represents a 5.95% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. Insiders sold a total of 132,333 shares of company stock worth $29,547,170 in the last 90 days. 91.48% of the stock is owned by insiders.
Hedge Funds Weigh In On KLA
Large investors have recently modified their holdings of the business. Pinebridge Investments LLC acquired a new stake in shares of KLA in the fourth quarter valued at about $32,812,000. Russell Investments Group Ltd. lifted its position in shares of KLA by 31.4% during the 4th quarter. Russell Investments Group Ltd. now owns 91,413 shares of the semiconductor company’s stock valued at $111,910,000 after acquiring an additional 21,850 shares during the period. Captrust Financial Advisors lifted its position in shares of KLA by 237.8% during the 4th quarter. Captrust Financial Advisors now owns 17,055 shares of the semiconductor company’s stock valued at $20,723,000 after acquiring an additional 12,006 shares during the period. Longbow Finance SA purchased a new stake in shares of KLA during the 4th quarter worth approximately $6,105,000. Finally, Horizon Investments LLC grew its holdings in shares of KLA by 30.1% in the 3rd quarter. Horizon Investments LLC now owns 10,981 shares of the semiconductor company’s stock worth $11,844,000 after acquiring an additional 2,540 shares during the period. 86.65% of the stock is owned by hedge funds and other institutional investors.
About KLA
KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.
Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.
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