KLA Corporation (KLAC)
Information Technology · $245B market cap · SEC CIK 0000319201
fundamentals score out of 100
Next reports on Oct 27, 2026, with analysts expecting $1.20 in earnings per share.
The case for KLAC
- Generated $3.7B of free cash flow in FY2025, 31% of revenue.
- Earns 85% on shareholder equity.
- 36% of revenue drops through to net profit.
- Revenue growing 11.7% year over year.
- Has compounded revenue at 14.4% a year over five years.
- Gross margin of 62% absorbs cost shocks.
The case against
- Pricey at 50.7× earnings, against a long-run market average nearer 20×.
- Priced at 18.0× sales, which leaves no room for a stumble.
- Priced at 62× book value. Very little hard asset backing here.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings, sales, assets and cash | 20 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 63 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 84 |
| Momentumhow the price has behaved lately | 48 |
| Stabilityhow violently it moves, what it owes and what it pays you | 44 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
Key numbers
| Price / earnings | 50.7× |
|---|---|
| Price / book | 62.07× |
| Price / sales | 18.0× |
| Revenue growth (YoY) | +11.7% |
| EPS growth (YoY) | +20.6% |
| Gross margin | 62% |
| Operating margin | 42% |
| Net margin | 36% |
| Return on equity | 85% |
| Debt / equity | 0.93× |
| Current ratio | 2.88 |
| Dividend yield | 1.04% |
| Beta | 1.45 |
| 52-week range | $98.10 – $307.37 |
| Position in that range | 43% of the way up |
| 3-month return | -29.1% |
| 1-year return | +76.1% |
Five years of financials, as filed
Pulled from KLA Corporation's XBRL filings on SEC EDGAR. Italic rows are derived from the rows above.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue | $12.2B | $9.8B | $10.5B | $9.2B | $6.9B |
| Net income | $4.1B | $2.8B | $3.4B | $3.3B | $2.1B |
| Operating cash flow | $4.1B | $3.3B | $3.7B | $3.3B | $2.2B |
| Capital expenditure | $335M | $277M | $342M | $307M | $232M |
| Total assets | $16.7B | $15.0B | $14.3B | $13.7B | $11.7B |
| Total liabilities | $11.3B | $11.4B | $11.2B | $11.1B | $7.6B |
| Shareholder equity | $5.5B | $3.6B | $3.0B | $2.6B | $4.0B |
| Cash | $2.5B | $1.8B | $1.7B | $1.6B | $1.7B |
| Long-term debt | $5.9B | $5.9B | $5.1B | $6.1B | $3.4B |
| Free cash flow | $3.7B | $3.0B | $3.3B | $3.0B | $2.0B |
| Net margin | 33.4% | 28.1% | 32.3% | 36.1% | 30.0% |
| Diluted shares | 1.3B | 1.4B | 1.4B | 1.5B | 1.6B |
Share count is down 14.0% over 4 years. Buybacks have been shrinking the pie. Counts are restated for stock splits so the years compare.
What KLA Corporation says it does
The Company KLA Corporation and its majority-owned subsidiaries ("KLA" or the "Company," and also referred to as "we," "our," "us" or similar references) are suppliers of industry-leading equipment and services that enable innovation throughout the electronics industry. We provide advanced process control and process-enabling solutions for manufacturing wafers, reticles/masks, chemicals/materials, integrated circuits ("ICs" or "chips"), packaged ICs and printed circuit boards ("PCBs"), as well as comprehensive support and services across our installed base. Our suite of advanced products, coupled with our unique process control software and services, allows us to deliver solutions that help our customers achieve their technology advancement and high-volume production goals by improving yields while reducing waste, risks and costs. This improves our customers’ overall profitability and return on investment. Our services business, which…
Risk factors KLAC lists in its 10-K
- Macroeconomic, International Trade, Operational and Regulatory Risks
- Business Model and Capital Structure Risks
- We are exposed to risks associated with a weakening in the condition of the financial markets and the global economy
- Export controls, sanctions and other trade-related regulations issued by Commerce and other governmental authorities may limit our ability to sell certain products or provide certain services to certain customers, particularly in
- China, and may significantly harm our business, results of operations, financial condition and cash flows, unless we are able to obtain required licenses
- We are exposed to various risks related to the legal, regulatory and tax environments in which we perform our operations and conduct our business
- Differing expectations, requirements and attention to ESG matters from our stakeholders, including any targets or other ESG initiatives, could result in additional costs or risks or adversely impact our business
- We depend on key personnel to manage our business effectively, and if we are unable to attract, retain and motivate our key employees, our sales and product development could be harmed
- We depend on information technology for our business and are exposed to risks related to cybersecurity threats and cyber incidents affecting our, our customers
- We self-insure certain risks including earthquake risk. If one or more of the uninsured events occurs, we could suffer major financial loss
- We are exposed to risks associated with our interest rate hedging activities
- We are exposed to risks in connection with tax and regulatory compliance audits in various jurisdictions
- A change in our effective tax rate can have a significant adverse impact on our business
- We are exposed to risks associated with a highly concentrated customer base