KLA Corporation (KLAC) AI Stock Analysis

Established in 1975 and based in Milpitas, California, KLA Corporation provides advanced process control, yield management, and process-enabling solutions. The company operates across four main segments: Semiconductor Process Control, Specialty Semiconductor Process, PCB, Display and Component Inspection, and Other. Its primary Semiconductor Process Control segment delivers wafer inspection, metrology, defect detection, reticle inspection, and substrate analysis systems to optimize integrated circuit manufacturing. Additionally, KLA provides benchtop metrology and surface characterization for specialty semiconductors, direct imaging and optical shaping solutions for printed circuit boards, and inspection equipment for display and packaging manufacturing.

KLA Corporation delivered a 5-year revenue CAGR of 14.4% from FY2021 to FY2026. Annual revenue grew from $9.21B in FY2022 to $10.50B in FY2023, declined 6.5% to $9.81B in FY2024, rebounded 23.9% to $12.16B in FY2025, and reached $13.58B in FY2026. Net income expanded from $3.32B in FY2022 to $4.83B in FY2026, with gross margin increasing to 61.3% and operating margin reaching 41.7%. For the trailing twelve months ended June 30, 2026, EPS was $3.66 on a 35.6% profit margin. In the latest quarter ended June 30, 2026, quarterly revenue grew 15.2% year-over-year while quarterly earnings rose 13.8%.

As of June 30, 2026, KLA held $4.90B in cash and short-term investments against $6.15B in total debt, resulting in net debt of $1.25B. Shareholders' equity stood at $6.35B, yielding a debt-to-equity ratio of 0.97 and a current ratio of 2.88. Operating cash flow reached $4.14B in FY2026, supporting $3.77B in free cash flow after capital expenditures of $375.9M. The company deployed capital toward shareholder returns in FY2026 through $2.29B in share buybacks and $1.06B in dividends paid, contributing to a 13.4% reduction in share count over 5 years.

At $165.74, KLA trades at a trailing P/E of 45.3x and a forward P/E of 34.8x, compared to 42.1x and 25.1x for the median of its Nasdaq-100 Technology peers. Its enterprise value stands at $246.41B with an EV/EBITDA of 39.4x, above the peer median of 30.6x, and a price-to-sales multiple of 15.9x versus the peer median of 11.9x. Over the past year, KLA shares gained 51.7%, outperforming the S&P 500 return of 16.8%. Over a 5-year span, the stock appreciated 428.8% against 83.0% for the S&P 500.

KLA pays a forward annual dividend of $0.92 per share, representing a 0.56% dividend yield. The payout ratio stands at 22.3%, and dividends have been paid for 22 consecutive years. The dividend grew at an annualized rate of 16.2% over the past 5 years, with the last ex-dividend date on August 17, 2026.

Wall Street coverage includes 15 Strong Buy, 5 Buy, and 10 Hold ratings, with zero Sell or Strong Sell ratings. The mean price target is $232.77, representing a 40.4% premium over the last close of $165.74. For the fiscal year ending June 30, 2027, consensus estimates project revenue of $18.14B and EPS of $5.44, representing 44.6% EPS growth. KLA beat EPS estimates in each of the last 4 quarters, with its next earnings report scheduled for October 28, 2026.

This page is an AI-written research summary of KLA Corporation (KLAC). The text was generated on October 30, 2026 from Quotelinks data as of October 16, 2026 (company profile, annual results, latest balance sheet, valuation, price performance and analyst estimates). An automatic check rejects any draft that contains a figure not found in that data. It is not investment advice; verify figures on the linked tabs before making decisions.

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