Financial Performance
5Y price score: 864
The price score is a basic measure of the stock's performance against the S&P 500 Index over a five-year period.
A score of 100 indicates that the stock did as well as the S&P 500 Index.
A score below 100 means the stock underperformed the index, while a score above 100 means it outperformed the S&P 500.
10Y return: 2,784.1%
US$ Per
Share
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83.2
52-week range
307.3
Your model inputs
Your fair value & Margin of safety
To calculate fair value based on cost of capital and terminal growth assumptions above, please select free cash flow forecast.
Forecast:
Valuation
Free Cash Flow Yield
1.4 %
Dividend Yield TTM
0.4 %
Market cap $
$ 277,911
Price / Earnings TTM
60.3
Price / Book TTM
47.8
PEG TTM
1.2
Earnings growth and return
LTM
5YR
10YR
Total return (price & dividends)
127.8 %
634.3 %
2,784.1 %
Free cash flow per share growth
25.7 %
171.8 %
717.6 %
Earnings per share growth
49.8 %
294.4 %
1,255.8 %
Founded: 1,975
Employees: 15,000
Business Summary:
Latest Earnings Call Takeaways
2026 Q3 (Apr 29, 2026)
1) Strong Financial Performance
- KLA reported Q3 2026 revenue of $3.415 billion, up 4% sequentially and 11% year-over-year.
- Non-GAAP diluted EPS was $9.40, exceeding guidance, while GAAP diluted EPS was $9.12.
- The gross margin stood at 62.2%, driven by a favorable service business mix and increased manufacturing scale.
- Free cash flow for the quarter was $622 million, with a free cash flow margin of 31%.
- Total capital returned in the quarter was $875 million, including $626 million in share repurchases and $249 million in dividends.
2) Market Leadership and Growth Drivers
- KLA achieved the #1 position in process control for advanced wafer-level packaging for 2025, with a projected revenue growth from $635 million in 2025 to $1 billion in 2026.
- The company expects high growth in its semiconductor process control systems business, forecasting over 20% growth in 2026.
- KLA's market share in advanced packaging increased by 14 percentage points, with a 70% year-over-year revenue growth in this segment.
- The company anticipates high teen revenue growth in the semiconductor process control systems business for the second half of 2026.
3) Challenges and Headwinds
- KLA faces challenges from elevated DRAM pricing, which is expected to negatively impact gross margins by approximately 100 basis points through 2026.
- The company also mentioned ongoing tariff impacts and a modestly weaker product mix affecting margins.
- Despite strong demand, the company noted that the semiconductor industry is constrained by the capacity of fabs and the time required to build new facilities.
4) Strategic Initiatives and Future Outlook
- KLA's long-term revenue growth target has been revised to a CAGR of 13% to 17% through 2030, reflecting strong growth across key segments.
- The company plans to allocate over 90% of free cash flow towards capital returns, including dividends and share repurchases.
- KLA's June quarter guidance is for revenue of $3.575 billion, plus or minus $200 million, with expectations for continued sequential growth throughout 2026.
- The company is focused on next-generation product development and infrastructure investments to support anticipated revenue growth.
5) Investor Considerations
- KLA's strong market position and growth in advanced packaging and semiconductor process control systems present a compelling investment thesis.
- However, investors should be aware of potential margin pressures from DRAM pricing and the challenges of scaling production to meet demand.
- The transcript lacks specific details on the impact of geopolitical factors, particularly regarding China, which could influence future performance.
Bottom line: KLA's robust financial performance and strategic positioning in the semiconductor market, particularly in advanced packaging and process control, suggest a strong growth trajectory. However, investors should monitor margin pressures and capacity constraints as potential risks to sustained performance.
Annual Reports, Presentations And IR Contacts
Go to the websiteKLA Corporation — Financial Overview, Stock Price, Market Cap
KLA Corporation is a company. Founded in 1975. As of July 20, 2026, the company's market capitalization is $277911070000 with a current stock price of $212.75.