KLA Corporation (KLAC)

Information Technology · $198B market cap · SEC CIK 0000319201

Next reports on Jan 27, 2027, with analysts expecting $1.48 in earnings per share.

52-week range $107.20 to $307.37. 50% below its 52-week high and 43% above its low.

The case for KLAC

• Generated $3.8B of free cash flow in FY2026, 28% of revenue.
• Earns 87% on shareholder equity.
• 36% of revenue drops through to net profit.
• Revenue growing 15.8% year over year.
• Earnings per share up 25.5%.
• Has compounded revenue at 14.4% a year over five years.

The case against

• Priced at 39× book value. Very little hard asset backing here.
• The price trend is weak (38/100): +26.8% over a year, −21.5% over three months, 50% below its 52-week high.

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. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.

• Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.

The financials

The financials, five years deep

Pulled from KLA Corporation's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.

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

• 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
• We are exposed to risks related to the development, adoption, governance and use of AI by us, our competitors and other third parties
• If we do not develop and introduce new products and technologies in a timely manner in response to changing market conditions or customer requirements, our business could be seriously harmed
• Our success is dependent in part on our technology and other proprietary rights. If we are unable to maintain our lead or protect our proprietary technology, we may lose valuable assets
• Our future performance depends, in part, upon our ability to continue to compete successfully worldwide
• If we fail to operate our business in accordance with our business plan, our operating results, business and stock price may be significantly and adversely impacted
• We have a leveraged capital structure
• Our leveraged capital structure may adversely affect our financial condition, results of operations and net income per share
• There can be no assurance that we will continue to declare cash dividends at all or in any particular amounts
• We are exposed to risks related to our commercial terms and conditions, including our indemnification of third parties, as well as the performance of our products
• There are risks associated with our receipt of government funding
• We have recorded significant asset impairment, restructuring and inventory write-off charges and may do so again in the future, which could have a material negative impact on our results of operations
• We are exposed to risks related to our receivables factoring and banking arrangements
• We are subject to the risks of additional government actions in the event we were to breach the terms of any settlement arrangement into which we have entered

Filings

Other Information Technology companies