KLAC KLA Corporation - Common Stock

NASDAQ · Semiconductors · View on SEC EDGAR ↗
$1789.12
Price · May 20, 2026
Fundamentals as of Apr 30, 2026
52W Range
$740–$1939
87% of range
Analyst Rating
BUY
36 analysts
Price Target
$1852
+3% upside
P/E (TTM)
29.5
ROE
98.1%
Net Profit Margin
33.4%

KLAC Stock Snapshot Price, market cap, P/E, EPS, ROE, debt/equity, 52-week range

Price
$1789.12
Market Cap
$118.26B
P/E (TTM)
29.5
EPS (TTM)
$30.37
Revenue (TTM)
$12.16B
Div Yield
0.76%
ROE
98.1%
Debt/Equity
0.0
52W Range
$740 – $1939

KLAC Stock Price Chart Daily OHLCV with technical indicators — pan, zoom, and customize your view

10-Year Performance Revenue, net income, margins and EPS trends

Revenue & Net Income $12.16B
10-point trend, +307.3%
2016-06-30 → 2025-06-30
EPS $30.37
10-point trend, +576.4%
2016-06-30 → 2025-06-30
Free Cash Flow $3.75B
10-point trend, +414.7%
2016-06-30 → 2025-06-30
Margins 33.4%

Valuation P/E, P/S, P/B, EV/EBITDA ratios — is the stock expensive or cheap?

Metric
5Y trend
KLAC
Peer Median
P/E (TTM)
5-point trend, +21.6%
29.5
43.8
P/S (TTM)
5-point trend, +35.9%
9.7
9.8
P/B
5-point trend, +71.9%
25.2
4.1
EV / EBITDA
5-point trend, +208.7%
294.8
—
Price / FCF
5-point trend, +24.5%
31.6
—

Profitability Gross, operating and net margins; ROE, ROA, ROIC

Metric
5Y trend
KLAC
Peer Median
Net Profit Margin
5-point trend, +11.2%
33.4%
13.8%
ROA
5-point trend, +21.3%
25.8%
6.2%
ROE
5-point trend, +42.7%
98.1%
11.3%

Financial Health Debt, liquidity, solvency — balance sheet strength

Metric
5Y trend
KLAC
Peer Median
Debt / Equity
5-point trend, -100.0%
0.0
44.0
Current Ratio
5-point trend, -3.3%
2.6
2.7
Quick Ratio
5-point trend, -18.4%
1.1
—

Growth Revenue, EPS and net income growth: YoY, 3Y CAGR, 5Y CAGR

Metric
5Y trend
KLAC
Peer Median
Revenue YoY
5-point trend, +75.7%
23.9%
—
Revenue CAGR 3Y
5-point trend, +75.7%
9.7%
—
Revenue CAGR 5Y
5-point trend, +75.7%
15.9%
—
EPS YoY
5-point trend, +127.2%
49.8%
—
Net Income YoY
5-point trend, +95.4%
47.1%
—

Per Share Metrics EPS, book value per share, cash flow per share, dividend per share

Metric
5Y trend
KLAC
Peer Median
EPS (Diluted)
5-point trend, +127.2%
$30.37
—

Capital Efficiency Asset turnover, inventory turnover, receivables turnover

Metric
5Y trend
KLAC
Peer Median
Payout Ratio
5-point trend, -17.2%
22.3%
—

Dividends Yield, payout ratio, dividend history, 5Y CAGR

Dividend Yield
0.76%
Payout Ratio
22.3%
5Y Div CAGR
—
Ex-dateAmount
Feb. 17, 2026$1.9000
Nov. 17, 2025$1.9000
Aug. 18, 2025$1.9000
May 19, 2025$1.9000
Feb. 24, 2025$1.7000
Nov. 18, 2024$1.7000
Aug. 15, 2024$1.4500
May 14, 2024$1.4500
Feb. 15, 2024$1.4500
Nov. 14, 2023$1.4500
Aug. 14, 2023$1.3000
May 12, 2023$1.3000
Feb. 10, 2023$1.3000
Nov. 14, 2022$1.3000
Aug. 12, 2022$1.3000
May 13, 2022$1.0500
Feb. 11, 2022$1.0500
Nov. 12, 2021$1.0500
Aug. 13, 2021$1.0500
May 14, 2021$0.9000

KLAC Analyst Consensus Bullish and bearish analyst opinions, 12-month price target, upside

BUY 36 analysts
  • Strong Buy 10 27.8%
  • Buy 14 38.9%
  • Hold 12 33.3%
  • Sell 0 0.0%
  • Strong Sell 0 0.0%

12-Month Price Target

29 analysts · 2026-05-18
Median target $1875.00 +4.8%
Mean target $1851.69 +3.5%

Earnings History EPS actual vs estimate, surprise %, beat rate, next earnings date

Avg Surprise
0.16%
Period EPS Actual EPS Est Surprise
March 31, 2026 $9.40 $9.32 0.08%
Dec. 31, 2025 $8.85 $8.98 -0.13%
Sept. 30, 2025 $8.81 $8.78 0.03%
June 30, 2025 $9.38 $8.73 0.65%
March 31, 2025 $8.41 $8.26 0.15%

Peer Comparison Key metrics vs sector peers

Ticker Market Cap P/E Rev YoY Net Margin ROE Gross Margin
KLAC $118.26B 29.5 23.9% 33.4% 98.1% —
LRCX $123.32B 23.4 23.7% 29.1% 57.4% 48.7%
AMAT $181.40B 26.4 4.4% 24.7% 35.5% 48.7%
TER $30.21B 55.8 13.1% 17.4% 19.7% 58.2%
Q — 24.7 9.7% 15.3% 8.2% —
MKSI $10.74B 36.6 9.6% 7.5% 11.2% 46.7%
ENTG $12.80B 54.4 -1.4% 7.4% 6.1% 44.4%
AMKR $9.76B 26.3 6.2% 5.6% 8.7% 14.0%
ONTO $8.24B 59.7 1.8% 13.6% 6.7% 49.7%
FORM $4.51B 84.1 2.8% 6.9% 5.4% 39.3%
AXTI $905M -33.4 -11.1% -24.1% -9.1% 12.7%

Full Fundamentals All metrics by year — income statement, balance sheet, cash flow

Income Statement 17
Annual Income Statement data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Revenue 12-point trend, +315.0% $12.16B $9.81B $10.50B $9.21B $6.92B $5.81B $4.57B $4.04B $3.48B $2.98B $2.81B $2.93B
Cost of Revenue 12-point trend, +285.4% $4.75B $3.93B $4.22B $3.59B $2.77B $2.45B $1.87B $1.45B $1.29B $1.16B $1.22B $1.23B
R&D Expense 12-point trend, +152.2% $1.36B $1.28B $1.30B $1.11B $928M $864M $711M $609M $527M $481M $531M $539M
SG&A Expense 12-point trend, +167.5% $1.03B $970M $986M $860M $730M $734M $599M $442M $388M $379M $407M $385M
Operating Expenses · · · · · · · · · · · $2.16B
Operating Income · · · · · · · · · · · $772M
Interest Expense 10-point trend, +451.8% · · $297M $160M $157M $160M $125M $114M $122M $123M $106M $54M
Interest Income 12-point trend, +1230.0% $180M $161M $74M $9M $9M $22M $40M $37M $23M $15M $13M $14M
Other Non-op 12-point trend, +15807.9% $171M $155M $105M $-5M $29M $-3M $31M $30M $-6M $7M $-2M $1M
Pretax Income 12-point trend, +532.4% $4.64B $3.19B $3.79B $3.49B $2.36B $1.32B $1.30B $1.46B $1.17B $858M $434M $734M
Income Tax 12-point trend, +284.2% $583M $428M $402M $167M $283M $102M $121M $654M $247M $154M $68M $152M
Net Income 12-point trend, +597.0% $4.06B $2.76B $3.39B $3.32B $2.08B $1.22B $1.18B $802M $926M $704M $366M $583M
EPS (Basic) 12-point trend, +769.8% $30.53 $20.41 $24.28 $22.07 $13.49 $7.76 $7.53 $5.13 $5.92 $4.52 $2.26 $3.51
EPS (Diluted) 12-point trend, +775.2% $30.37 $20.28 $24.15 $21.92 $13.37 $7.70 $7.49 $5.10 $5.88 $4.49 $2.24 $3.47
Shares (Basic) 12-point trend, -19.9% 133,030,000 135,345,000 139,483,000 150,494,000 154,086,000 156,797,000 156,053,000 156,346,000 156,468,000 155,869,000 162,282,000 166,016,000
Shares (Diluted) 12-point trend, -20.4% 133,750,000 136,187,000 140,235,000 151,555,000 155,437,000 158,005,000 156,949,000 157,378,000 157,481,000 156,779,000 163,701,000 168,118,000
EBITDA 12-point trend, -53.9% $394M $402M $415M $363M $333M $348M $233M $63M $58M $67M $81M $855M
Balance Sheet 29
Annual Balance Sheet data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Cash & Equivalents 12-point trend, +229.5% $2.08B $1.98B $1.93B $1.58B $1.43B $1.23B $480M $1.40B $1.15B $1.11B $838M $631M
Short-term Investments 5-point trend, -41.5% · · · · · · · $1.48B $1.86B $1.38B $1.55B $2.52B
Receivables 12-point trend, +359.3% $2.26B $1.83B $1.75B $1.81B $1.31B $1.11B $990M $652M $571M $613M $585M $493M
Inventory 12-point trend, +389.3% $3.21B $3.03B $2.88B $2.15B $1.58B $1.31B $1.26B $932M $733M $699M $618M $656M
Prepaid Expense 12-point trend, +478.7% $201M $125M $121M $109M $77M $75M $88M $47M $36M $37M $37M $35M
Other Current Assets 12-point trend, +963.5% $728M $659M $499M $502M $321M $325M $323M $85M $71M $65M $78M $68M
Current Assets 12-point trend, +133.3% $10.70B $10.03B $8.37B $7.17B $5.70B $4.72B $4.32B $4.55B $4.39B $3.87B $3.90B $4.59B
PP&E (Net) 12-point trend, +279.3% $1.25B $1.11B $1.03B $850M $663M $520M $449M $286M $284M $278M $315M $330M
PP&E (Gross) 12-point trend, +216.5% $2.74B $2.39B $2.14B $1.75B $1.49B $1.27B $1.19B $985M $937M $888M $892M $865M
Accum. Depreciation 12-point trend, +177.8% $1.49B $1.28B $1.11B $905M $822M $755M $745M $698M $653M $610M $578M $535M
Goodwill 12-point trend, +434.4% $1.79B $2.02B $2.28B $2.32B $2.01B $2.05B $2.21B $355M $350M $335M $335M $335M
Intangibles 12-point trend, +1505.9% $445M $669M $935M $1.19B $1.19B $1.39B $1.56B $19M $19M $4M $12M $28M
Other Non-current Assets 12-point trend, +201.7% $774M $693M $637M $485M $445M $363M $266M $236M $196M $175M $181M $256M
Total Assets 12-point trend, +190.3% $16.07B $15.43B $14.07B $12.60B $10.27B $9.28B $9.01B $5.64B $5.53B $4.96B $4.83B $5.54B
Accounts Payable 12-point trend, +343.3% $459M $359M $371M $443M $342M $264M $202M $169M $147M $107M $103M $103M
Short-term Debt 4-point trend, +0.00 · · $0 $0 $20M $0 · · · · · ·
Current Liabilities 12-point trend, +356.2% $4.09B $4.66B $3.74B $2.87B $2.10B $1.70B $1.77B $1.21B $1.29B $1.00B $1.00B $896M
Capital Leases 6-point trend, +124.1% $159M $153M $138M $81M $71M $71M · · · · · ·
Deferred Tax 8-point trend, +37238.8% $447M $487M $529M $659M $651M $661M $702M $1M · · · ·
Other Non-current Liabilities 12-point trend, +262.3% $610M $743M $813M $883M $631M $672M $588M $493M $172M $157M $182M $168M
Total Liabilities 12-point trend, +509.5% $11.38B $12.07B $11.15B $11.20B $6.90B $6.60B $6.33B $4.02B $4.21B $4.27B $4.40B $1.87B
Long-term Debt 12-point trend, +689.7% $5.88B $5.88B $5.89B $6.66B $3.42B $3.47B $3.42B $2.24B $2.93B $3.06B $3.19B $745M
Total Debt 10-point trend, -100.0% $0 $750M · $0 $20M $3.47B $3.42B $2.24B $2.93B $3.06B $3.19B ·
Common Stock 12-point trend, -20.0% $132.0K $134.0K $137.0K $142.0K $153.0K $155.0K $159.0K $156.0K $157.0K $156.0K $158.0K $165.0K
Retained Earnings 12-point trend, -12.1% $2.18B $1.14B $848M $367M $1.28B $655M $715M $1.06B $848M $285M $-12M $2.48B
AOCI 12-point trend, +104.0% $1M $-49M $-36M $-27M $-76M $-80M $-73M $-54M $-51M $-49M $-41M $-30M
Stockholders' Equity 12-point trend, +27.9% $4.69B $3.37B $2.92B $1.40B $3.38B $2.67B $2.66B $1.62B $1.33B $689M $421M $3.67B
Liabilities + Equity 12-point trend, +190.3% $16.07B $15.43B $14.07B $12.60B $10.27B $9.28B $9.01B $5.64B $5.53B $4.96B $4.83B $5.54B
Shares Outstanding 12-point trend, -20.2% 132,023,000 134,425,000 136,750,000 141,804,000 152,776,000 155,461,000 159,475,000 156,048,000 156,840,000 155,955,000 157,851,000 165,448,000
Cash Flow 19
Annual Cash Flow data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
D&A 12-point trend, +374.4% $394M $402M $415M $363M $333M $348M $233M $63M $58M $67M $81M $83M
Stock-based Comp 12-point trend, +334.9% $265M $213M $171M $127M $112M $111M $94M $63M $51M $45M $55M $61M
Deferred Tax 12-point trend, -1599.9% $-245M $-139M $-355M $-354M $-46M $-93M $-26M $101M $3M $16M $-24M $16M
Amort. of Intangibles 12-point trend, +1260.5% $220M $239M $261M $229M $206M $221M $87M $5M $3M $8M $16M $16M
Restructuring 11-point trend, +15.6% $8M $22M $44M $1M $12M $8M · $0 $0 $9M $32M $7M
Other Non-cash 12-point trend, -1200.7% $-394M $71M $51M $-146M $-293M $196M $-324M $200M $41M $-73M $128M $36M
Operating Cash Flow 12-point trend, +424.1% $4.08B $3.31B $3.67B $3.31B $2.19B $1.78B $1.15B $1.23B $1.08B $760M $606M $779M
CapEx 12-point trend, +396.7% $335M $277M $342M $307M $232M $153M $130M $67M $39M $32M $46M $68M
Investing Cash Flow 12-point trend, +70.1% $-202M $-1.48B $-483M $-876M $-500M $-259M $-1.18B $292M $-561M $145M $918M $-676M
Net Debt Issued 11-point trend, +18.1% $-750M $0 $-1.09B $-620M $-70M $-1.17B $-902M $-946M $-130M $-135M $-916M ·
Stock Issued 12-point trend, +35.0% $152M $145M $125M $113M $86M $76M $65M $61M $45M $38M $47M $112M
Stock Repurchased 12-point trend, +792.7% $2.15B $1.74B $1.31B $3.97B $939M $829M $1.10B $203M $25M $182M $603M $241M
Net Stock Activity 12-point trend, -1453.7% $-2.00B $-1.59B $-1.19B $-3.85B $-853M $-753M $-1.03B $-142M $20M $-143M $-556M $-129M
Dividends Paid 12-point trend, +202.7% $905M $773M $733M $638M $559M $522M $472M $402M $344M $346M $3.04B $299M
Financing Cash Flow 12-point trend, -725.0% $-3.79B $-1.78B $-2.83B $-2.26B $-1.50B $-1.30B $-360M $-1.27B $-473M $-637M $-1.30B $-459M
Net Change in Cash 12-point trend, +128.7% $102M $49M $343M $150M $200M $218M $-388M $251M $45M $270M $207M $-355M
Taxes Paid 12-point trend, +655.8% $887M $831M $495M $465M $326M $205M $180M $253M $234M $105M $70M $117M
Free Cash Flow 12-point trend, +426.7% $3.75B $3.03B $3.33B $3.01B $1.95B $1.63B $1.02B $1.16B $1.04B $728M $560M $711M
Levered FCF 10-point trend, +358.0% · · $3.06B $2.85B $1.81B $1.48B $909M $1.10B $944M $627M $471M $669M
Profitability 7
Annual Profitability data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Operating Margin · · · · · · · · · · · 26.4%
Net Margin 12-point trend, +68.0% 33.4% 28.1% 32.3% 36.1% 30.0% 21.0% 25.7% 19.9% 26.6% 23.6% 13.0% 19.9%
Pretax Margin 12-point trend, +52.4% 38.2% 32.5% 36.1% 37.9% 34.1% 22.7% 28.4% 36.1% 33.7% 28.8% 15.4% 25.1%
EBITDA Margin 12-point trend, -88.9% 3.2% 4.1% 4.0% 3.9% 4.8% 6.0% 5.1% 1.6% 1.7% 2.2% 2.9% 29.2%
ROA 12-point trend, +139.5% 25.8% 18.7% 25.4% 29.0% 21.3% 13.3% 16.1% 14.4% 17.6% 14.4% 7.1% 10.8%
ROE 12-point trend, +502.1% 98.1% 87.8% 134.9% 139.0% 68.8% 45.7% 54.9% 54.4% 91.9% 126.9% 17.9% 16.3%
ROIC · · · · · · · · · · · 16.7%
Liquidity & Solvency 5
Annual Liquidity & Solvency data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Current Ratio 12-point trend, -48.9% 2.6 2.2 2.2 2.5 2.7 2.8 2.4 3.7 3.4 3.9 3.9 5.1
Quick Ratio 12-point trend, -73.9% 1.1 0.8 1.0 1.2 1.3 0.9 1.1 2.9 2.8 3.1 3.0 4.1
Debt / Equity 10-point trend, -100.0% 0.0 0.2 · 0.0 0.0 1.3 1.3 1.4 2.2 4.4 7.6 ·
LT Debt / Equity 6-point trend, -82.7% · · · · · 1.3 1.2 1.4 2.0 4.4 7.5 ·
Interest Coverage · · · · · · · · · · · 14.3
Efficiency 3
Annual Efficiency data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Asset Turnover 12-point trend, +42.6% 0.8 0.7 0.8 0.8 0.7 0.6 0.6 0.7 0.7 0.6 0.5 0.5
Inventory Turnover 12-point trend, -20.4% 1.5 1.3 1.7 1.9 1.9 1.9 1.7 1.7 1.8 1.8 1.9 1.9
Receivables Turnover 12-point trend, +3.1% 5.9 5.5 5.9 5.9 5.7 5.5 5.6 6.6 5.9 5.0 5.2 5.8
Per Share 6
Annual Per Share data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Book Value / Share 12-point trend, +60.3% $35.54 $25.06 $21.35 $9.88 $22.11 $17.15 $16.67 $10.38 $8.46 $4.42 $2.67 $22.18
Revenue / Share 12-point trend, +421.6% $90.89 $72.05 $74.85 $60.78 $44.51 $36.75 $29.11 $25.65 $22.10 $19.04 $17.19 $17.42
Cash Flow / Share 12-point trend, +558.7% $30.52 $24.29 $26.17 $21.86 $14.06 $11.26 $7.34 $7.81 $6.86 $4.85 $3.70 $4.63
Cash / Share 12-point trend, +313.0% $15.75 $14.71 $14.10 $11.18 $9.39 $2.96 $6.37 $9.00 $7.35 $7.11 $5.31 $3.81
Dividend / Share 12-point trend, +275.0% $7 $6 $5 $4 $4 $3 $3 $3 $2 $2 $18 $2
EPS (TTM) 12-point trend, +775.2% $30.37 $20.28 $24.15 $21.92 $13.37 $7.70 $7.49 $5.10 $5.88 $4.49 $2.24 $3.47
Growth Rates 10
Annual Growth Rates data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Revenue YoY 5-point trend, +24.7% 23.9% -6.5% 13.9% 33.1% 19.2% · · · · · · ·
Revenue CAGR 3Y 3-point trend, -55.6% 9.7% 12.3% 21.8% · · · · · · · · ·
Revenue CAGR 5Y 15.9% · · · · · · · · · · ·
EPS YoY 5-point trend, -32.4% 49.8% -16.0% 10.2% 63.9% 73.6% · · · · · · ·
EPS CAGR 3Y 3-point trend, -75.2% 11.5% 14.9% 46.4% · · · · · · · · ·
EPS CAGR 5Y 31.6% · · · · · · · · · · ·
Net Income YoY 5-point trend, -33.5% 47.1% -18.5% 2.0% 59.8% 70.8% · · · · · · ·
Net Income CAGR 3Y 3-point trend, -83.0% 6.9% 9.9% 40.7% · · · · · · · · ·
Net Income CAGR 5Y 27.3% · · · · · · · · · · ·
Dividend CAGR 5Y 11.6% · · · · · · · · · · ·
Valuation (TTM) 17
Annual Valuation (TTM) data for KLAC
Metric Trend 202520242023202220212020201920182017201620152014
Revenue TTM 12-point trend, +315.0% $12.16B $9.81B $10.50B $9.21B $6.92B $5.81B $4.57B $4.04B $3.48B $2.98B $2.81B $2.93B
Net Income TTM 12-point trend, +597.0% $4.06B $2.76B $3.39B $3.32B $2.08B $1.22B $1.18B $802M $926M $704M $366M $583M
Market Cap 12-point trend, +884.0% $118.26B $110.83B $66.33B $45.25B $49.53B $30.23B $18.85B $16.00B $14.35B $11.42B $8.87B $12.02B
Enterprise Value 10-point trend, +1100.7% $116.18B $109.61B · $43.66B $48.12B $33.24B $21.26B $15.36B $14.27B $11.99B $9.68B ·
P/E 12-point trend, +40.9% 29.5 40.7 20.1 14.6 24.2 25.3 15.8 20.1 15.6 16.3 25.1 20.9
P/S 12-point trend, +137.1% 9.7 11.3 6.3 4.9 7.2 5.2 4.1 4.0 4.1 3.8 3.2 4.1
P/B 12-point trend, +669.5% 25.2 32.9 22.7 32.3 14.7 11.3 7.1 9.9 10.8 16.6 21.1 3.3
P / Tangible Book 3-point trend, -82.4% 48.2 162.1 · · 273.5 · · · · · · ·
P / Cash Flow 12-point trend, +87.8% 29.0 33.5 18.1 13.7 22.7 17.0 16.4 13.0 13.3 15.0 14.6 15.4
P / FCF 12-point trend, +86.8% 31.6 36.6 19.9 15.1 25.4 18.6 18.4 13.8 13.8 15.7 15.8 16.9
EV / EBITDA 10-point trend, +145.4% 294.8 272.8 · 120.2 144.3 95.5 91.1 245.0 246.7 179.1 120.1 ·
EV / FCF 10-point trend, +79.5% 31.0 36.2 · 14.5 24.6 20.4 20.8 13.2 13.7 16.5 17.3 ·
EV / Revenue 10-point trend, +177.9% 9.6 11.2 · 4.7 7.0 5.7 4.7 3.8 4.1 4.0 3.4 ·
Dividend Yield 12-point trend, -69.5% 0.76% 0.70% 1.1% 1.4% 1.1% 1.7% 2.5% 2.5% 2.4% 3.0% 34.3% 2.5%
Earnings Yield 12-point trend, -29.1% 3.4% 2.5% 5.0% 6.9% 4.1% 4.0% 6.3% 5.0% 6.4% 6.1% 4.0% 4.8%
Payout Ratio 12-point trend, -56.6% 22.3% 28.0% 21.6% 19.2% 26.9% 42.9% 40.2% 50.1% 37.1% 49.2% 830.5% 51.3%
Annual Payout 12-point trend, +202.7% $905M $773M $733M $638M $559M $522M $472M $402M $344M $346M $3.04B $299M

Financial Statements Income statement, balance sheet, cash flow — annual, last 5 years

Income Statement
2025-06-302024-06-302023-06-302022-06-302021-06-30
Revenue $12.16B$9.81B$10.50B$9.21B$6.92B
Net Income $4.06B$2.76B$3.39B$3.32B$2.08B
Diluted EPS $30.37$20.28$24.15$21.92$13.37
Balance Sheet
2025-06-302024-06-302023-06-302022-06-302021-06-30
Debt / Equity 0.00.2—0.00.0
Current Ratio 2.62.22.22.52.7
Quick Ratio 1.10.81.01.21.3
Cash Flow
2025-06-302024-06-302023-06-302022-06-302021-06-30
Free Cash Flow $3.75B$3.03B$3.33B$3.01B$1.95B

KLAC AI Analyst Panel — Bullish and Bearish Views 2026Q2 debate: Claude, Grok, Gemini, ChatGPT on the stock's prospects

Round 1 — Opening Takes

Grok NEUTRAL 0.75
↑ Bullish

I see KLA thriving as the go-to metrology leader for advanced chip fabs, capturing AI-driven demand with elite profitability. Its ROE of 98% crushes peers like LRCX's 60%, generating almost every equity dollar in profit—a hardware rarity signaling huge pricing power. Gross margins stick at 62%, proving a durable moat in a cutthroat industry. The stock rocketed 48% in three months on spiking volume, momentum that screams conviction ahead of 2026Q2 fab expansions.

↓ Bearish

My concern is KLAC's stretched valuations expose it to chip cycle reversals with no margin for error. P/E at 37.7 matches peers but pairs with flat EPS, so price gains outpace any fundamental progress. P/B of 25x demands endless perfection in a boom-bust sector. Debt-to-equity at 118%—still high despite a dip—magnifies downside if semis cool.

Claude NEUTRAL 0.68
↑ Bullish

KLA has pricing power in a market where demand for chip inspection tools is structurally rising. The 61.99% gross margin and 33.83% net margin tell me this company extracts real profit from every dollar of sales — not just volume, but pricing discipline. Yes, the P/E of 37.7 is elevated, but the 98% ROE shows KLA turns shareholder capital into earnings at a rate most industrial companies cannot touch. The stock is up 32% from May lows, but that reflects genuine earnings momentum, not speculation. If semiconductor capex stays elevated through 2026, KLA's moat widens.

↓ Bearish

I'm concerned KLA is pricing in years of flawless execution at a 37.7x multiple. The debt-to-equity ratio of 118% is high — that leverage amplifies the ROE but also means a revenue miss hits harder. The P/S of 12.7 is stretched relative to LRCX at a similar P/E but lower leverage. Most worrying: the stock has rallied 32% in seven weeks on thin volume spikes (5.3M shares on one day). That pace of repricing suggests momentum, not fundamental rerating. If chip capex cycles soften in late 2025 or early 2026, multiple compression could be swift.

Gemini NEUTRAL 0.75
↑ Bullish

KLA Corporation is essentially the toll booth for the semiconductor industry, making it an essential play on the long-term complexity of chip manufacturing. The company maintains a 61.99% gross margin, which reflects its dominant position as the primary provider of process control and yield management equipment. Because chipmakers cannot afford to skip quality checks as they move to smaller nodes, this high margin is remarkably sticky. With a 98.15% return on equity, KLA is generating massive value from its capital base, proving that it is an elite operator that can scale efficiently alongside the broader AI-driven semiconductor cycle.

↓ Bearish

The valuation has stretched to a point where the stock is highly vulnerable to any slowdown in capital expenditure from major foundries. Trading at 37.68 times trailing earnings, the market has priced in near-perfect execution for the next several quarters. This P/E ratio indicates that investors are paying a premium for growth that may be difficult to accelerate from current levels. Furthermore, the debt-to-equity ratio of 118.06 reminds me that the company is carrying significant leverage, which could become a major liability if the semiconductor equipment cycle hits a cyclical downturn in 2026.

Chatgpt NEUTRAL 0.65
↑ Bullish

I think KLAC's core advantage is its market leadership and profitability, which should power upside into 2026Q2. ROE 98.15% — That level signals exceptional capital efficiency and pricing power, meaning the company can fund growth and sustain high earnings. Gross margin 61.99% — That margin anchors cash flow and resilience to input costs, supporting a robust earnings path. Debt/Equity 118.06 (down from 125.4) — That improvement reduces financial risk and increases flexibility to weather a capex cycle.

↓ Bearish

I think KLAC faces valuation and cyclicality risk that could cap upside into 2026Q2. P/E 37.68 — In line with peers, that offers little cushion for disappointment; the April 15 option activity suggests hedging rather than conviction. ROE 98.15% — That level could be unsustainable if cycles soften, raising the risk of a pullback in returns. Debt/Equity 118.06 — That leverage level leaves financial risk if cash flow dips or rates rise.

Round 2 — Responses & Rebuttals

Grok

ChatGPT, your bearish read on that April 15 options activity as hedging misses the bigger picture of bullish conviction. The 5,278 contracts equaled 57% of average daily volume, fueling a stock surge from $694 to $925 in three months—that's not defensive positioning but smart money piling into metrology demand ahead of 2026Q2 capex. It reinforces my buy call amid the rally's momentum.

Claude

I need to push back on Grok's momentum read here. Yes, the stock is up 48% in three months, but Grok is treating volume spikes as conviction when the data says otherwise. That April 15 options print—5.3 million shares notional—is hedging activity, not accumulation. More important: Grok claims flat EPS yet price gains outpace fundamentals, but that misses what actually happened. EPS was $30.39 in Q3, now $31.85 in Q1—that's 4.8% earnings growth quarter-over-quarter. The stock repriced because the market finally priced in that KLA's margins aren't cyclical noise; they're structural. The momentum isn't a red flag; it's the market catching up to the business reality. That said, Grok is right that 118% leverage leaves no room for error if fab spending rolls over.

Gemini

Grok, I disagree with your buy rating because you are overlooking the danger of the company's capital structure in a cyclical downturn. You cited the 98% ROE as proof of pricing power, but that figure is heavily inflated by the 118.06% debt-to-equity ratio. This means the company is funding a massive portion of its operations with borrowed money rather than just operational efficiency. If the semiconductor equipment cycle cools, that high leverage will act as a massive anchor on earnings, making the stock's current 37.68 P/E multiple look far too expensive for the level of risk involved.

Chatgpt

Grok, your point that KLAC's ROE of 98% signals a pricing-power moat is compelling. That level can be boosted by leverage or buybacks and may not persist if the chip cycle slows. The stock trades around a 37.7x P/E. That means the market is pricing in sustained earnings growth and leaves little cushion if demand softens. Between those dynamics, I would watch the upcoming capex cycle signals and confirm that ROE isn't just a buyback illusion.

Round 3 — Final Rebuttals

G
Grok

Gemini, I push back on calling the 98.15% ROE 'heavily inflated' by leverage alone, as if operations play no role. Gross margin at 61.99% proves KLA extracts durable premiums for process control tools that chipmakers must buy to hit yields at 2nm and below. That profitability base—before any debt multiplier—drives the ROE and underpins my buy for 2026Q2 fab builds.

C
Claude

I want to push back on something no one has touched yet: customer concentration. KLA's top three customers—TSMC, Samsung, Intel—likely represent 60–70% of revenue, and that matters enormously here. If Intel's capex stalls or TSMC's growth slows, KLA doesn't get to spread that risk across a diversified base. That concentration is baked into the 98% ROE because those customers are locked in by switching costs, but it also means KLA's earnings are far more cyclical than the margin profile suggests. Gemini is right that leverage amplifies downside, but the real vulnerability isn't just the debt-to-equity ratio—it's that KLA's top-three customer base could contract sharply if foundry demand softens in late 2025 or early 2026. That's the scenario where the 37.7x multiple breaks.

G
Gemini

Grok, I have to challenge your interpretation of the April 15 options activity as a bullish signal. That volume represents 57.1% of the average daily trading volume, which in this market environment is classic institutional hedging against a potential earnings miss. While you see conviction, I see defensive positioning from funds protecting gains after a 32% rally. Furthermore, we are ignoring the geopolitical risk of export controls on advanced metrology tools to China, which accounts for a significant chunk of industry revenue. If those restrictions tighten, KLA’s 33.83% net margin—the share of revenue that actually becomes profit—is at immediate risk.

C
Chatgpt

Claude, I challenge your contention that a capex tailwind alone widens the moat. KLAC trades around 37.7x trailing earnings. That implies the market is pricing in sustained earnings growth, so any capex slowdown would compress the multiple before margins can fully compensate. And the high leverage means cash flow weakness or rate moves could hit hard if the cycle turns.

Price Forecasts

Model 3M Target 6M Target Reasoning
G Grok 3M Target $1020.00 6M Target $1120.00 Reasoning I think KLA's unmatched pricing power in process control tools positions it for steady gains as AI-driven fab capex ramps into 2026Q2. The key catalyst is TSMC's Q2 earnings on July 17, 2025, where sustained capex guidance will confirm demand for KLA's inspection gear. The big risk is tightened US export controls on advanced tools to China by Q3 2025, hitting 10-15% of revenue. Trading at 37.7x P/E today, expansion to 40x on flat $31.85 EPS implies $1274 fair value, but I see 1120 by 6 months on moat confirmation versus peers like LRCX.
C Claude 3M Target $875.00 6M Target $920.00 Reasoning KLA's structural margin power and customer lock-in justify a premium multiple, but the 37.7x P/E leaves no room for a capex miss. My thesis: the stock holds 2026Q2 upside if foundry capex signals remain intact, but customer concentration—TSMC, Samsung, Intel likely 60–70% of revenue—makes KLA far more cyclical than the 61.99% gross margin suggests. Catalyst: Q2 2026 earnings beat on sustained fab spending would re-rate the stock toward $920. Risk: any guidance cut from TSMC or Intel capex weakness breaks the multiple and sends the stock toward $800. The current 37.7x multiple means the market is pricing perfection; one quarter of slowdown compresses valuation sharply. I'm holding my hold at 68% confidence—the upside is real if the cycle holds, but the downside is swift if it doesn't.
G Gemini 3M Target $880.00 6M Target $825.00 Reasoning I believe KLA is entering a period of multiple contraction as the market realizes that current valuation levels cannot be sustained without a significant acceleration in foundry capital expenditure. My 6-month target rests on the upcoming 2026Q2 earnings guidance, where any sign of softening in advanced node equipment orders will trigger a swift repricing. Conversely, if TSMC announces a major capacity expansion in the next quarter, it could push the stock toward my 3-month target. The current P/E of 37.68 means investors are paying a premium for growth that is already fully priced, leaving zero room for execution errors in a high-leverage environment.
C Chatgpt 3M Target $750.00 6M Target $820.00 Reasoning I think KLAC can drift higher over the next 3–6 months as margins stay sticky and the secular demand for metrology remains intact. The catalyst is the upcoming earnings print that should confirm margin resilience and signal continued capex by leading foundries. Risk is a cyclical downturn in chip capex that could compress the multiple and undermine the thesis. ROE is around 98%. That high return on equity means the business is highly efficient at converting capital into profits, but it can be pulled down quickly if demand softens or leverage drags cash flow.

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