olivLaw · US equity research
KLA Corporation KLAC
Optical Instruments & Lenses · SIC 3827 · Vertical: Optical Instruments & Lenses (SIC 3827)
KLA Corporation (KLAC) supplies process control and yield management equipment and services to the electronics industry, with total revenues of 13.58 billion USD in fiscal 2026. Services accounted for about 23% of revenues, and the company ended the year with a backlog of 12.57 billion USD. Fourth-quarter results and first-quarter fiscal 2027 guidance point to growth driven by AI infrastructure demand.
The AI analysis may be outdated: new filings came after its sources (see the «AI analysis» section).
At the close of 04 Nov 2026, KLA Corporation (KLAC) stock was 149.79 USD (−4.10% on the day), with market capitalisation 195.2 bn USD, P/E 7.8 on diluted EPS of 19.26 USD over the last 12 months, dividend yield 0.56%, beta 2.01, 52-week range 109.71–301.71 USD. Latest reported quarter (Q1 2027): revenue of 4.1 bn USD (+28.9% YoY), net income of 1.5 bn USD (+38.1% YoY), diluted EPS 1.18 USD.
Data as of · AI analysis dated · Source: SEC filings and closing prices, computed by olivLaw.
Price history
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Technical reading
- RSI (14)
- 36.5
- weak (30–45)
- Bollinger (20, 2)
- 134.81 – 196.84
- in the lower half of the band · %B 0.24 · band width 37.4%
- SMA 50 / 200
- 176.82 / 182.06
- downtrend (price < SMA50 < SMA200)
- MACD (12, 26, 9)
- -8.56 / -8.03
- MACD below signal
Indicators describe past prices; on their own they do not predict direction. On our history the RSI ≤ 40 filter added no return (see the signals methodology).
Performance
| Company | S&P 500 | vs S&P 500 | Vertical median | |
|---|---|---|---|---|
| 1 month | −27.6% | −1.1% | −26.5 pp | — |
| 3 months | −22.3% | −0.5% | −21.9 pp | — |
| 6 months | −17.5% | +4.4% | −21.9 pp | — |
| Year to date | +23.3% | +12.3% | +11.0 pp | — |
| 1 year | +25.5% | +13.5% | +12.0 pp | −11.6% |
| 3 years | +199.8% | +76.4% | +123.4 pp | +67.2% |
| 5 years | +259.4% | +63.7% | +195.8 pp | — |
Price returns, dividends excluded.
Quarterly results
Latest quarter: Q1 2027 · 30 Sept 2026
Quarterly margins
Quarterly statements · USD
| Fiscal year | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 | Q3 '26 | Q4 '26 | Q1 '27 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 3.1 bn | 3.1 bn | 3.2 bn | 3.2 bn | 3.3 bn | 3.4 bn | 3.7 bn | 4.1 bn |
| Cost of revenue | 1.2 bn | 1.2 bn | 1.2 bn | 1.2 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.6 bn |
| Research & development | 346.2 m | 338.0 m | 353.0 m | 360.5 m | 383.9 m | 388.8 m | 399.0 m | 395.1 m |
| SG&A | 267.1 m | 248.9 m | 262.7 m | 269.0 m | 279.9 m | 291.1 m | 291.5 m | 301.5 m |
| Depreciation & amortisation | 103.9 m ≈ | 98.1 m ≈ | 96.3 m | 97.0 m | 99.3 m ≈ | 99.1 m ≈ | 98.6 m | 97.4 m |
| Interest expense | 75.0 m | 71.9 m | 73.1 m | 71.1 m | 69.7 m | 70.4 m | 73.3 m | 67.9 m |
| Pre-tax income | 972.5 m | 1.3 bn | 1.3 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.5 bn | 1.8 bn |
| Income tax | 148.0 m | 176.0 m | 126.0 m | 188.4 m | 184.6 m | 215.8 m | 186.3 m | 275.5 m |
| Net income | 824.5 m | 1.1 bn | 1.2 bn | 1.1 bn | 1.1 bn | 1.2 bn | 1.4 bn | 1.5 bn |
| Diluted EPS | 6.16 | 8.16 | 0.24 ≈ | 0.85 | 8.68 | 9.12 | 0.28 ≈ | 1.18 |
| Operating cash flow | 849.5 m ≈ | 1.1 bn ≈ | 1.2 bn | 1.2 bn | 1.4 bn ≈ | 707.5 m ≈ | 906.4 m | 1.5 bn |
| Capex | 92.3 m ≈ | 82.1 m ≈ | 100.4 m | 95.9 m | 105.6 m ≈ | 85.2 m ≈ | 89.3 m | 194.8 m |
| Dividends paid | 226.8 m ≈ | 225.8 m ≈ | 254.0 m | 254.0 m | 249.7 m ≈ | 248.8 m ≈ | 305.3 m | 305.1 m |
| Share repurchases | 650.1 m ≈ | 506.7 m ≈ | 425.7 m | 545.1 m | 547.8 m ≈ | 626.0 m ≈ | 571.0 m | 935.8 m |
≈ derived quarter (cumulative difference / share-days average)
E/P over time
E/P = trailing-12-month diluted EPS / price at quarter end. E/P is the inverse of P/E and stays defined when earnings are negative.
Today's P/E sits at the 93 percentile of its own 44-quarter history (min 1.0, median 2.2, max 15.9; quarters with earnings only).
Fiscal years
| Fiscal year | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 |
|---|---|---|---|---|---|---|---|---|
| Revenue | 4.6 bn | 5.8 bn | 6.9 bn | 9.2 bn | 10.5 bn | 9.8 bn | 12.2 bn | 13.6 bn |
| Revenue YoY | +13.2% | +27.1% | +19.2% | +33.1% | +13.9% | −6.5% | +23.9% | +11.7% |
| Net income | 1.2 bn | 1.2 bn | 2.1 bn | 3.3 bn | 3.4 bn | 2.8 bn | 4.1 bn | 4.8 bn |
| Net income YoY | +46.5% | +3.5% | +70.8% | +59.8% | +2.0% | −18.5% | +47.1% | +18.9% |
| Diluted EPS | 7.49 | 7.70 | 13.37 | 21.92 | 24.15 | 2.03 | 3.04 | 3.66 |
| Diluted EPS YoY | +46.9% | +2.8% | +73.6% | +63.9% | +10.2% | −91.6% | +49.8% | +20.4% |
| net % | 25.7% | 21.0% | 30.0% | 36.1% | 32.3% | 28.1% | 33.4% | 35.6% |
| Free cash flow | 1.0 bn | 1.6 bn | 2.0 bn | 3.0 bn | 3.3 bn | 3.0 bn | 3.7 bn | 3.8 bn |
Reported results vs expectations
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Balance sheet & financial health
Fiscal year 2026 · 30 Jun 2026
- Cash
- 1.6 bn USD
- Financial debt
- 5.9 bn USD
- Net debt
- 4.2 bn USD
- Equity
- 6.3 bn USD
- Total assets
- 18.0 bn USD
- Debt / equity
- 0.93x
- Current ratio
- 2.88x
- ROE
- 87.5%
- ROA
- 28.4%
- FCF margin
- 27.7%
Financial statements (source on every figure)
Revenue and net income (USD)
Margins
Income statement · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Revenue | 6.9 bn | 9.2 bn | 10.5 bn | 9.8 bn | 12.2 bn | 13.6 bn | SEC (XBRL)· 06 Aug 2026verified |
| Cost of revenue | 2.8 bn | 3.6 bn | 4.2 bn | 3.9 bn | 4.8 bn | 5.3 bn | SEC (XBRL)· 06 Aug 2026verified |
| Gross profit | 4.1 bn ≈ | 5.6 bn ≈ | 6.3 bn ≈ | 5.9 bn ≈ | 7.4 bn ≈ | 8.3 bn ≈ | SEC (XBRL)· 06 Aug 2026derived |
| Research & development | 928.5 m | 1.1 bn | 1.3 bn | 1.3 bn | 1.4 bn | 1.5 bn | SEC (XBRL)· 06 Aug 2026verified |
| SG&A | 729.6 m | 860.0 m | 986.3 m | 969.5 m | 1.0 bn | 1.1 bn | SEC (XBRL)· 06 Aug 2026verified |
| Depreciation & amortisation | 333.3 m | 363.3 m | 415.1 m | 401.7 m | 394.1 m | 394.0 m | SEC (XBRL)· 06 Aug 2026verified |
| Interest expense | 157.3 m | 160.3 m | 296.9 m | 311.3 m | 302.2 m | 284.4 m | SEC (XBRL)· 06 Aug 2026verified |
| Pre-tax income | 2.4 bn | 3.5 bn | 3.8 bn | 3.2 bn | 4.6 bn | 5.6 bn | SEC (XBRL)· 06 Aug 2026verified |
| Income tax | 283.1 m | 167.2 m | 401.8 m | 428.1 m | 582.8 m | 775.2 m | SEC (XBRL)· 06 Aug 2026verified |
| Net income | 2.1 bn | 3.3 bn | 3.4 bn | 2.8 bn | 4.1 bn | 4.8 bn | SEC (XBRL)· 06 Aug 2026verified |
| Diluted EPS | 13.37 | 21.92 | 24.15 | 2.03 | 3.04 | 3.66 | SEC (XBRL)· 06 Aug 2026verified |
| Weighted average diluted shares | 155.4 m | 151.6 m | 140.2 m | 1.4 bn | 1.3 bn | 1.3 bn | SEC (XBRL)· 06 Aug 2026verified |
| Dividend per share | 3.60 | 4.20 | 5.20 | 0.57 | 0.68 | 0.80 | SEC (XBRL)· 06 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Revenue − Cost of revenue.
Balance sheet · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Cash | 1.4 bn | 1.6 bn | 1.9 bn | 2.0 bn | 2.1 bn | 1.6 bn | SEC (XBRL)· 06 Aug 2026verified |
| Receivables | 1.3 bn | 1.8 bn | 1.8 bn | 1.8 bn | 2.3 bn | 2.9 bn | SEC (XBRL)· 06 Aug 2026verified |
| Inventories | 1.6 bn | 2.1 bn | 2.9 bn | 3.0 bn | 3.2 bn | 3.6 bn | SEC (XBRL)· 06 Aug 2026verified |
| Current assets | 5.7 bn | 7.2 bn | 8.4 bn | 10.0 bn | 10.7 bn | 12.4 bn | SEC (XBRL)· 06 Aug 2026verified |
| Property, plant & equipment, net | 663.0 m | 849.9 m | 1.0 bn | 1.1 bn | 1.3 bn | 1.4 bn | SEC (XBRL)· 06 Aug 2026verified |
| Goodwill | 2.0 bn | 2.3 bn | 2.3 bn | 2.0 bn | 1.8 bn | 1.8 bn | SEC (XBRL)· 06 Aug 2026verified |
| Intangibles (excl. goodwill) | 1.2 bn | 1.2 bn | 935.3 m | 668.8 m | 444.8 m | 255.8 m | SEC (XBRL)· 06 Aug 2026verified |
| Total assets | 10.3 bn | 12.6 bn | 14.1 bn | 15.4 bn | 16.1 bn | 18.0 bn | SEC (XBRL)· 06 Aug 2026verified |
| Accounts payable | 342.1 m | 443.3 m | 371.0 m | 359.5 m | 458.5 m | 623.7 m | SEC (XBRL)· 06 Aug 2026verified |
| Short-term debt | 20.0 m | 0 | 0 | 749.9 m | 0 | — | SEC (XBRL)· 08 Aug 2025verified |
| Long-term debt | 3.4 bn | 6.7 bn | 5.9 bn | 5.9 bn | 5.9 bn | 5.9 bn | SEC (XBRL)· 06 Aug 2026verified |
| Current liabilities | 2.1 bn | 2.9 bn | 3.7 bn | 4.7 bn | 4.1 bn | 4.3 bn | SEC (XBRL)· 06 Aug 2026verified |
| Total liabilities | 6.9 bn | 11.2 bn | 11.2 bn | 12.1 bn | 11.4 bn | 11.6 bn | SEC (XBRL)· 06 Aug 2026verified |
| Equity | 3.4 bn | 1.4 bn | 2.9 bn | 3.4 bn | 4.7 bn | 6.3 bn | SEC (XBRL)· 06 Aug 2026verified |
| Shares outstanding at year end | 152.7 m | 141.8 m | 136.7 m | — | — | — | SEC (XBRL)· 28 Apr 2023verified |
Cash flow · USD
| Line | 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Source (latest year) |
|---|---|---|---|---|---|---|---|
| Operating cash flow | 2.2 bn | 3.3 bn | 3.7 bn | 3.3 bn | 4.1 bn | 4.1 bn | SEC (XBRL)· 06 Aug 2026verified |
| Capex | 231.6 m | 307.3 m | 341.6 m | 277.4 m | 335.3 m | 375.9 m | SEC (XBRL)· 06 Aug 2026verified |
| Free cash flow | 2.0 bn ≈ | 3.0 bn ≈ | 3.3 bn ≈ | 3.0 bn ≈ | 3.7 bn ≈ | 3.8 bn ≈ | SEC (XBRL)· 06 Aug 2026derived |
| Investing cash flow | -500.4 m | -876.5 m | -482.6 m | -1.5 bn | -202.5 m | -1.2 bn | SEC (XBRL)· 06 Aug 2026verified |
| Financing cash flow | -1.5 bn | -2.3 bn | -2.8 bn | -1.8 bn | -3.8 bn | -3.4 bn | SEC (XBRL)· 06 Aug 2026verified |
| Dividends paid | 559.4 m | 638.5 m | 732.6 m | 773.0 m | 904.6 m | 1.1 bn | SEC (XBRL)· 06 Aug 2026verified |
| Share repurchases | 938.6 m | 4.0 bn | 1.3 bn | 1.7 bn | 2.1 bn | 2.3 bn | SEC (XBRL)· 06 Aug 2026verified |
≈ computed by olivLaw from the reported lines of the same year: Operating cash flow − Capex.
Computed indicators
Growth
Profitability
Returns
Balance sheet
Liquidity
Cash
Efficiency
Market and valuation
1 indicators that do not apply to the sector.
Valuation
olivLaw classification
Score: 63 / 100
A scoring methodology on indicators and valuation, not investment advice.
Closing price
04 Nov 2026Source: olivLaw, closing series
Market cap: 195.2 bn USD
Key indicators
Coverage and freshness
Score by group
- Balance sheet100
- Valuation67
- Quality83
- Growth37
- Returns57
Estimated value range
The combined range = the median of the valid methods' low, central and high values; it is not a probability interval and does not cover every result. Envelope of all methods: 45.05 – 728.85 USD.
Methods computed but outside the aggregate range: Dividend discount (DDM) (a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate).
Valuation assumptions are editorial choices, not measured; beta is not measured.
Method ranges (USD per share)
— — Mid · ▏ Price
Valuation methods
- DCF (discounted cash flow)45.05 – 70.74 (Mid 55.03)WACC 9.2% · starting FCFF 4.3 bn USD · terminal value share of EV 74%The WACC × g sensitivity gives the method's bounds; these are not probabilities.Reverse DCF: no growth between −30% and +40% justifies the price
- Peers: EV/EBITDAunavailable · input data missing
- Peers: P/E481.24 – 728.85 (Mid 678.16)3 companies used · median multiple 35.2x · quartiles 25.0x – 37.8xCOHR, NVMI, OPXS
- Dividend discount (DDM)outside the aggregate10.51 – 14.14 (Mid 12.06)a small share of earnings is paid as dividends (capital returns through buybacks): the dividend model does not describe the value and stays outside the aggregate
Classification (SIC) comparables group by industry code, not by economic activity; the direct group is an editorial selection by activity. Members' multiples are on their own trailing twelve months, at their own latest close.
Assumptions (illustrative, editorial)
- Risk-free rate
- 4.3%
- Equity risk premium
- 5.0%
- Beta (default)
- 1.00
- Cost of equity
- 9.3%
- Terminal growth
- 2.5%
Factor scorecard
Neutral profile · Score 63/100
| Factor | Value | Score | Weight used |
|---|---|---|---|
| ROIC · Quality | unavailable | unavailable | — |
| Net margin · Quality | 36.2% | 100 (vs peers) | 10% |
| FCF conversion · Quality | 76.8% | 67 (on a fixed band) | 10% |
| Revenue CAGR 3Y · Growth | 9.0% | 75 (on a fixed band) | 13% |
| EPS CAGR 3Y · Growth | -46.7% | 0 (on a fixed band) | 13% |
| Net debt / EBITDA · Balance sheet | unavailable | unavailable | — |
| Interest coverage · Balance sheet | unavailable | unavailable | — |
| Current ratio · Balance sheet | 2.8x | 100 (on a fixed band) | 7% |
| P/E (TTM) · Valuation | 7.8x | 100 (on a fixed band) | 17% |
| EV/EBITDA · Valuation | unavailable | unavailable | — |
| FCF yield · Valuation | 2.1% | 26 (on a fixed band) | 13% |
| Shareholder yield (distributions) · Returns | 1.9% | 28 (on a fixed band) | 10% |
| Payout ratio (FCF) · Returns | 27.5% | 100 (on a fixed band) | 7% |
Factors without a value were dropped; the remaining weights were renormalised.
Score groups
- Balance sheet· partial100/100 · 1/3 factors with a value
- Growth37/100 · 2/2 factors with a value
- Quality83/100 · 2/3 factors with a value
- Returns57/100 · 2/2 factors with a value
- Valuation67/100 · 2/3 factors with a value
A «partial» group is computed from under half of its weight or from one factor: it is not a full assessment of the group.
Memo
KLA CORPORATION (KLAC). Latest full fiscal year: 2026; data up to 2026-09-30.
Figures computed from the financial statements: revenue 13.6 bn USD in 2026; YoY growth 11.7%; net margin 36.2%; ROE 91.4%.
The estimated value range is 263.15–399.80 USD per share (median of 2 methods, agreement: low); assumptions are illustrative. Against the central value of 366.60 USD, the price of 149.79 USD leaves a potential of 144.7% (value / price − 1) and a margin of safety of 59.1% (1 − price / value). The range is the median of the methods' low, central and high values, not a probability interval.
olivLaw score 63/100, methodological classification: neutral profile (score, margin of safety and method agreement together; not a judgement of the right price). Groups assessed only in part: balance. Not investment advice.
Text generated deterministically from the figures shown; no language model. Not investment advice.
What supports the thesis
- Net margin: 36.2%
- Revenue CAGR 3Y: 9.0%
- Current ratio: 2.8x
- P/E (TTM): 7.8x
- Payout ratio (FCF): 27.5%
- The price is below the estimated value range
What contradicts it
- EPS CAGR 3Y: -46.7%
- FCF yield: 2.1%
- Shareholder yield (distributions): 1.9%
- The valuation methods diverge
Not assessed (insufficient data or a ratio without meaning): ROIC, Net debt / EBITDA, Interest coverage, EV/EBITDA.
Versus the vertical median
Optical Instruments & Lenses (SIC 3827) · same industry (4-digit SIC) · compared with 6 companies
The size band was not applied: too few companies would have remained; the vertical includes much smaller or larger companies.
Multiples and returns vs the median
Price rebased to 100 (monthly, 5 years)
Companies in the vertical
| Market cap | P/E | ROE | Net margin | Revenue YoY | 1A / 3A | |
|---|---|---|---|---|---|---|
| KLACKla Corporation | 195.2 bn | 7.8 | 91.4% | 36.2% | +11.7% | +26% / +200% |
| COHRCoherent Corp. | 38.4 bn | 40.5 | 11.2% | 12.2% | +22.5% | +19% / +430% |
| NVMINova Ltd. | 8.2 bn | 35.2 | 23.1% | 29.4% | +31.0% | −10% / +118% |
| CAMTCamtek Ltd. | 4.2 bn | 88.4 | 8.7% | 10.2% | +15.6% | −13% / +45% |
| OPTXSyntec Optics Holdings, Inc. | 151.7 m | — | -11.6% | -8.3% | −1.3% | +118% / −36% |
| OPXSOptex Systems Holdings, Inc. | 56.2 m | 14.8 | 15.3% | 9.8% | +21.6% | −44% / +90% |
| MSAIMultiSensor AI Holdings, Inc. | 6.7 m | — | -46.5% | -141.7% | −25.0% | −88% / −99% |
1- and 3-year price returns: for KLAC from daily closes (the same as the performance table), for the other companies from month-end closes.
olivLaw engine forecast
The world engine ran after the company's latest material disclosure. Probabilities are of TOUCHING a level within the horizon (not closing there) and sit next to the random walk (p_rw), the no-information benchmark.
Valuation scenarios (editable assumptions)
Illustrative scenarios
Illustrative: not forecasts and without probabilities. Each case is one coherent set of assumptions, computed on today's figures.
Estimated price (USD)
| Estimated price | Bear | Base | Bull |
|---|---|---|---|
| 1 years | 19.39 Total return -87% · Per year -87% | 34.20 Total return -77% · Per year -77% | 51.42 Total return -66% · Per year -66% |
| 3 years | 20.54 Total return -86% · Per year -48% | 40.61 Total return -72% · Per year -35% | 66.79 Total return -55% · Per year -23% |
| 5 years | 21.76 Total return -85% · Per year -32% | 48.22 Total return -67% · Per year -20% | 86.74 Total return -41% · Per year -10% |
- Exit P/E± 10.15
- Net margin± 7.11
- Annual revenue growth± 5.59
- Annual dilution± 0.60
AI analysis
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
In brief
KLA Corporation (KLAC) supplies process control and yield management equipment and services to the electronics industry, with total revenues of 13.58 billion USD in fiscal 2026 1. Services accounted for about 23% of revenues, and the company ended the year with a backlog of 12.57 billion USD 1. Fourth-quarter results and first-quarter fiscal 2027 guidance point to growth driven by AI infrastructure demand 2.
SWOT
Strengths
- Technology leadership in process control and a broad portfolio of products and software, supported by sustained investment in research and development 1.
- Recurring service revenue forms a large share of sales and offers a steadier base than equipment sales alone 12.
- Strong cash generation and an active policy of returning capital to shareholders 2.
Weaknesses
- Customer concentration is high, so a single major customer can meaningfully influence revenue and planning 1.
- Demand is cyclical, and orders can be delayed, reduced or cancelled during periods of economic uncertainty 1.
- The capital structure includes significant debt, which limits financial flexibility if revenues decline 1.
Opportunities
- Expansion of AI infrastructure and advanced packaging could create new growth opportunities for process control solutions 12.
- Adoption of EUV and advanced nodes could raise the intensity of process control and the value of each sale 1.
- Expanding services for the installed base could support long-term recurring revenue 1.
Risks
- Export controlshigh
Restrictions on sales and services to certain customers in China could reduce revenue and disrupt operations 1.
- Customer concentrationhigh
A small number of large customers account for a significant part of revenue, so the loss or reduction of orders from one could have a major impact 1.
- Industry cyclicalitymedium
Customer capital spending can fall sharply, and orders may be delayed or cancelled during economic slowdowns 1.
- Tariffs and international trademedium
Tariffs, retaliatory measures and uncertainty over refund processes could raise costs and delay deliveries 12.
- Supply chain constraintsmedium
Dependence on limited-source suppliers, rare earth availability and DRAM chip shortages could affect production and costs 1.
Investment thesis
What would need to be true (bull case)
- Leadership in process control and demand linked to artificial intelligence could support growth in revenue and backlog in the period ahead 12.
- A large share of recurring services offers a steadier base, and strong cash generation allows continued capital returns to shareholders 12.
- EUV adoption, advanced nodes and complex packaging could raise the intensity of process control and the value of each sale 1.
What would break the thesis
- Export restrictions and trade tensions could reduce access to important markets, especially China, which would weigh on revenue 1.
- Customer concentration and the cyclicality of semiconductor investment could create volatility in revenue and orders 1.
- Significant debt and dependence on limited-source suppliers could constrain financial flexibility and production capacity in difficult periods 1.
What to watch
- Delivery against first-quarter revenue and gross margin guidanceQ1 2027
- Development of backlog and orders linked to AI infrastructure2027
Products, market & competition
AI-generatedAI-generated analysis (Claude) from cited public sources; it may contain errors. Not investment advice. As of 27 Oct 2026 · Model: claude-haiku-5-5.
Possibly outdated: the newest document it read is from 06 Aug 2026; since then the company filed 10-Q (29 Oct 2026), 8-K (28 Oct 2026 · results).
The business
KLA Corporation provides advanced process control solutions for manufacturing wafers, reticles, integrated circuits and printed circuit boards, along with maintenance services for its installed base 1. The company is organized into three reportable segments, and services made up about 23% of total revenues in fiscal 2026 1. International revenues represented about 87% of total revenues in the same year 1.
Demand for the company depends on capital spending by semiconductor and electronics manufacturers, which is cyclical and affected by global economic conditions and regulatory change 1. Rising chip complexity and the high cost of advanced fabs make yield control a critical factor for customers 1. The company maintains research and development centers in several countries and treats continued investment in innovation as essential to its competitive position 1.
Segments
Semiconductor Process Control
This is the largest segment, offering inspection, metrology, chemistry process control and software products with related services used by chip, wafer and reticle manufacturers from R&D through volume production 1.
Specialty Semiconductor Process
The segment develops advanced vacuum deposition and etching tools used for MEMS, RF communication chips and power semiconductors for automotive and industrial applications 1.
PCB and Component Inspection
The segment provides inspection, testing, measurement and direct imaging systems for printed circuit boards, IC substrates and packaged ICs 1.
Trends
- AI-driven demandtailwind
Demand for AI chips and data center infrastructure raises process control intensity at advanced nodes, which could support revenue if customer investment continues 12.
- EUV and advanced packagingtailwind
Adoption of EUV lithography in volume production and rising complexity of advanced packages increase demand for inspection and metrology solutions 1.
- Export restrictions to Chinaheadwind
Bureau of Industry and Security rules limit sales to certain China-based entities, and an affiliates rule is temporarily suspended, which could affect revenue if restrictions expand 1.
- Tariffs and geopolitical tensionmixed
Tariffs and trade measures could raise costs or delay deliveries, though the effect depends on evolving trade policy and possible refunds 12.
Competitive position
The analyzed sources do not describe direct competitors in detail, but they state that competitive position depends on technology, the scale of sales and service organizations and relationships with leading chipmakers 1. The company also notes that local providers in some regions may compete on price 1.
Competitive risk also includes policies that favor domestic suppliers and efforts by customers or governments to support local competitors 1. The company aims to sustain its advantage through continued research and development even during industry downturns 1.
- Local suppliers in Asia
Sources mention local providers that may compete on price in the region without naming them.
- Government-supported domestic suppliers
Risk factors cite competitors supported by public policy or customers, without identification in the sources.
- Deposition and etch equipment makers
The Specialty Semiconductor Process segment competes with specialized firms not named in the sources.
- PCB inspection equipment makers
The PCB and Component Inspection segment faces specialized inspection equipment producers not named in the source.
Links, dependencies and risks
Who the company is tied to, from its own SEC filings (customers, suppliers, production, partners, competitors, countries, regulation), from the 5 %+ holders' statements (13D/13G) and from what other companies say about it. Click a node for its evidence; on a listed company the graph moves to it.
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News & filings
In the press
No news in our archive over the last 180 days.
SEC filings
- Quarterly report29 Oct 2026
- Current report28 Oct 2026Results of operations · Financial statements and exhibits
- Proxy statement22 Sept 2026
- Annual report06 Aug 2026
- Current report06 Aug 2026Other events · Financial statements and exhibits
- Current report28 Jul 2026Results of operations · Financial statements and exhibits
- Current report12 Jun 2026Amendments to articles or bylaws · Financial statements and exhibits
- Current report07 May 2026Other events · Financial statements and exhibits
- Quarterly report30 Apr 2026
- Current report29 Apr 2026Results of operations · Financial statements and exhibits
Sources
- [1] Form 10-K, fiscal year ended 2026-06-30 · SEC / KLA Corporation · 06 Aug 2026
- [2] Form 8-K, results release (exhibit 99.1) · SEC / KLA Corporation · 28 Jul 2026
Figures computed by olivLaw from SEC filings and closing prices; the qualitative analysis is AI-generated from cited sources. Not investment advice.