KLA (NASDAQ:KLAC) Issues Quarterly Earnings Results

KLA (NASDAQ:KLAC) posted its quarterly earnings data on Tuesday. The semiconductor company reported $1.05 EPS for the quarter, topping analysts’ consensus estimates of $1.00 by $0.05, FiscalAI reports. The company had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.61 billion. KLA had a net margin of 35.66% and a return on equity of 91.89%. KLA updated its Q1 2027 guidance to 1.060-1.260 EPS.

Here are the key takeaways from KLA’s conference call:

• Record June-quarter results: Revenue reached $3.66 billion, up 7% sequentially and 15% year over year, while earnings and profitability came in above the midpoint of guidance.
• AI-driven demand is strengthening: KLA cited accelerating hyperscale data-center investment, leading-edge logic and memory growth, HBM adoption, and advanced packaging as drivers of rising process-control intensity. The company expects second-half 2026 revenue to grow approximately 20% over the first half and significant growth to continue in 2027.
• Outlook was raised: KLA now expects the 2026 wafer-equipment market, including advanced packaging, to reach the low-$150 billion range, up from its prior $140 billion-plus estimate. Advanced-packaging process-control revenue is forecast at approximately $1.1 billion, up more than 70% year over year.
• September-quarter guidance signals continued momentum: Revenue is expected at $4.0 billion, plus or minus $200 million, with gross margin guided to 62.5% and non-GAAP diluted EPS to $1.16, plus or minus $0.10. Backlog is expected to reach roughly $12.5 billion, supporting visibility into late 2027.
• Cost pressures remain: Higher memory prices and tariff-related costs are weighing on gross margins, with management estimating the memory headwind at more than 100 basis points and expecting it to continue through 2027, although new-product pricing and operating leverage should provide offsets.

KLA Stock Performance

Shares of NASDAQ KLAC traded down $12.56 during mid-day trading on Tuesday, reaching $190.80. 17,002,447 shares of the company were exchanged, compared to its average volume of 11,564,360. The stock has a market capitalization of $249.24 billion, a P/E ratio of 54.01, a P/E/G ratio of 2.00 and a beta of 1.41. The company has a quick ratio of 2.11, a current ratio of 3.03 and a debt-to-equity ratio of 1.01. The company’s 50-day simple moving average is $223.91 and its 200-day simple moving average is $180.56. KLA has a twelve month low of $83.22 and a twelve month high of $307.37.

KLA Cuts Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were issued a dividend of $0.23 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.92 annualized dividend and a yield of 0.5%. KLA’s dividend payout ratio (DPR) is currently 26.06%.

Insider Transactions at KLA

In other KLA news, CEO Richard P. Wallace sold 45,120 shares of the stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $221.34, for a total transaction of $9,986,725.44. Following the transaction, the chief executive officer owned 713,830 shares in the company, valued at $157,996,990.71. This represents a 5.95% decrease in their position. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CFO Bren D. Higgins sold 27,701 shares of the firm’s stock in a transaction on Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total value of $7,359,878.69. Following the transaction, the chief financial officer owned 263,472 shares in the company, valued at approximately $70,001,875.68. This trade represents a 9.51% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 132,333 shares of company stock worth $29,547,170 over the last quarter. Company insiders own 91.48% of the company’s stock.

Institutional Trading of KLA

A number of institutional investors and hedge funds have recently made changes to their positions in KLAC. Brooklyn Investment Group increased its stake in KLA by 15.4% in the fourth quarter. Brooklyn Investment Group now owns 1,914 shares of the semiconductor company’s stock valued at $2,411,000 after acquiring an additional 256 shares during the last quarter. Russell Investments Group Ltd. boosted its holdings in shares of KLA by 31.4% in the 4th quarter. Russell Investments Group Ltd. now owns 91,413 shares of the semiconductor company’s stock valued at $111,910,000 after purchasing an additional 21,850 shares in the last quarter. Pinebridge Investments LLC acquired a new stake in shares of KLA in the 4th quarter valued at $32,812,000. CSM Advisors LLC increased its stake in shares of KLA by 21.1% in the 4th quarter. CSM Advisors LLC now owns 3,542 shares of the semiconductor company’s stock valued at $4,304,000 after purchasing an additional 618 shares during the last quarter. Finally, Monetary Management Group Inc. increased its stake in shares of KLA by 0.4% in the 2nd quarter. Monetary Management Group Inc. now owns 3,773 shares of the semiconductor company’s stock valued at $3,380,000 after purchasing an additional 15 shares during the last quarter. Institutional investors own 86.65% of the company’s stock.

Analyst Ratings Changes

Several analysts recently issued reports on KLAC shares. Wells Fargo & Company reiterated an “overweight” rating and set a $305.00 target price (up from $210.00) on shares of KLA in a report on Monday, June 22nd. Scotiabank set a $200.00 price target on KLA in a research report on Wednesday, June 10th. Royal Bank Of Canada upped their price objective on KLA from $160.00 to $170.00 and gave the stock a “sector perform” rating in a research note on Thursday, April 30th. Needham & Company LLC increased their price objective on KLA from $200.00 to $270.00 and gave the company a “buy” rating in a report on Friday, July 10th. Finally, TD Cowen reissued a “buy” rating and issued a $260.00 target price (up from $200.00) on shares of KLA in a research note on Thursday, July 9th. Twenty research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. According to MarketBeat.com, the stock currently has an average rating of “Moderate Buy” and a consensus target price of $218.41.

KLA News Summary

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal fourth-quarter non-GAAP earnings of $1.05 per share, above the $1.00 Zacks consensus estimate and up from $0.94 a year earlier. Revenue reached approximately $3.66 billion, exceeding the consensus cited by several reports. KLA Q4 Earnings and Revenues Top Estimates
• Positive Sentiment: Management issued fiscal first-quarter 2027 guidance of $3.8 billion to $4.2 billion in revenue and $1.06 to $1.26 in EPS. The midpoint of both ranges is above Wall Street expectations, supporting the view that sustained artificial-intelligence infrastructure investment is driving demand for KLA’s chipmaking process-control tools. KLA Forecasts Upbeat Quarter
• Neutral Sentiment: The company generated $906.4 million in quarterly operating cash flow and returned $876.3 million to shareholders during the quarter, highlighting strong cash generation and capital returns. However, these results were largely backward-looking and did not offset investors’ concerns about valuation and near-term expectations. KLA Fiscal 2026 Results
• Negative Sentiment: The approximately $3.66 billion revenue result was slightly below one estimate of $3.669 billion, leaving little room for error given KLA’s elevated valuation and high investor expectations. The market reaction suggests traders were looking for a stronger upside surprise.
• Negative Sentiment: Semiconductor-equipment stocks were already under pressure after reports that China is moving toward mass production of domestic DUV lithography equipment, raising concerns about future competitive pressure and demand in the Chinese market. Chip Equipment Stocks Falling
• Negative Sentiment: Options activity indicated heightened downside hedging, with put-option volume about 64% above its average. The combination of sector weakness, a high earnings multiple and elevated post-earnings volatility amplified selling pressure.

About KLA

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.