KLA (KLAC)
Market Price (8/12/2026): $201.15 | Market Cap: $262.8 BilInvestor Relations Sector: Information Technology | Industry: Semiconductor Materials & Equipment
KLA (KLAC)
Market Price (8/12/2026): $201.15Market Cap: $262.8 BilSector: Information TechnologyIndustry: Semiconductor Materials & Equipment
Investment Highlights Why It Matters Detailed financial logic regarding cash flow yields vs trend-riding momentum.
Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 42% Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 28%, CFO LTM is 4.1 Bil, FCF LTM is 3.8 Bil Stock buyback supportStock Buyback 3Y Total is 6.2 Bil Megatrend and thematic driversMegatrends include Artificial Intelligence, Automation & Robotics, Advanced Materials, and 5G & Advanced Connectivity. Show more. | Stock price has recently run up significantly12M Rtn12 month market price return is 122% Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% Key risksKLAC key risks include [1] its substantial revenue from China being threatened by U.S. Show more. |
| Attractive operating marginsOp Mgn LTMOperating Margin = Operating Income / Revenue Reflects profitability before taxes and before impact of capital structure (interest payments). is 42% |
| Attractive cash flow generationCFO/Rev LTMCash Flow from Operations / Revenue (Sales), Last Twelve Months (LTM) is 31%, FCF/Rev LTMFree Cash Flow / Revenue (Sales), Last Twelve Months (LTM) is 28%, CFO LTM is 4.1 Bil, FCF LTM is 3.8 Bil |
| Stock buyback supportStock Buyback 3Y Total is 6.2 Bil |
| Megatrend and thematic driversMegatrends include Artificial Intelligence, Automation & Robotics, Advanced Materials, and 5G & Advanced Connectivity. Show more. |
| Stock price has recently run up significantly12M Rtn12 month market price return is 122% |
| Yield minus risk free rate is negativeERPEquity Risk Premium (ERP) = Total Yield - Risk Free Rate, Reflects the premium above risk free assets offered by the investment. is -2.2% |
| Key risksKLAC key risks include [1] its substantial revenue from China being threatened by U.S. Show more. |
Qualitative Assessment
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KLA (KLAC) stock has gained about 15% since 4/30/2026 because of the following key factors:
1. Strong Fiscal Q4 2026 Financial Performance and Upbeat Guidance.
KLA Corporation reported strong results for its fiscal fourth quarter 2026, which ended on June 30, 2026, surpassing Wall Street's revenue expectations with $3.66 billion, a 15.2% year-over-year increase, against analyst estimates of $3.61 billion. The company also beat non-GAAP diluted earnings per share (EPS) estimates by 5.1%, reporting $1.05 per share. Furthermore, KLA provided an optimistic revenue guidance for fiscal Q1 2027 (calendar Q3 2026), projecting a midpoint of $4 billion, which was 1.2% above analysts' estimates.
2. Increased Demand for Semiconductor Process Control Driven by AI Infrastructure.
Management highlighted an acceleration in business momentum, expected to continue through the second half of calendar 2026 and into 2027, largely propelled by the buildout of AI infrastructure. KLA emphasized its critical role in the semiconductor ecosystem, particularly with strong demand for high-end inspection systems vital for advanced packaging and sub-2nm process nodes. The company specifically projected that its advanced packaging revenue would grow more than 70% in calendar year 2026.
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KLA (KLAC) stock has gained about 15% since 4/30/2026 because of the following key factors:
1. Strong Fiscal Q4 2026 Financial Performance and Upbeat Guidance.
KLA Corporation reported strong results for its fiscal fourth quarter 2026, which ended on June 30, 2026, surpassing Wall Street's revenue expectations with $3.66 billion, a 15.2% year-over-year increase, against analyst estimates of $3.61 billion. The company also beat non-GAAP diluted earnings per share (EPS) estimates by 5.1%, reporting $1.05 per share. Furthermore, KLA provided an optimistic revenue guidance for fiscal Q1 2027 (calendar Q3 2026), projecting a midpoint of $4 billion, which was 1.2% above analysts' estimates.
2. Increased Demand for Semiconductor Process Control Driven by AI Infrastructure.
Management highlighted an acceleration in business momentum, expected to continue through the second half of calendar 2026 and into 2027, largely propelled by the buildout of AI infrastructure. KLA emphasized its critical role in the semiconductor ecosystem, particularly with strong demand for high-end inspection systems vital for advanced packaging and sub-2nm process nodes. The company specifically projected that its advanced packaging revenue would grow more than 70% in calendar year 2026.
3. Positive Analyst Reaffirmations and Raised Price Targets.
Following the robust fiscal Q4 2026 results and the positive outlook, numerous analysts reiterated their "Buy" ratings and increased their price targets for KLA. For instance, Cantor Fitzgerald raised its price target to $325 from $250, and JPMorgan elevated its target to $238 from $200, designating KLA as its top semi-cap stock pick. Zacks also upgraded KLA to a "Strong-Buy" rating, reflecting growing confidence in the company's future performance.
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Stock Movement Drivers
Fundamental Drivers
The 14.7% change in KLAC stock from 4/30/2026 to 8/11/2026 was primarily driven by a 10.7% change in the company's P/E Multiple.| (LTM values as of) | 4302026 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 174.81 | 200.47 | 14.7% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 13,097 | 13,579 | 3.7% |
| Net Income Margin (%) | 35.7% | 35.6% | -0.2% |
| P/E Multiple | 49.0 | 54.2 | 10.7% |
| Shares Outstanding (Mil) | 1,309 | 1,307 | 0.2% |
| Cumulative Contribution | 14.7% |
Market Drivers
4/30/2026 to 8/11/2026| Return | Correlation | |
|---|---|---|
| KLAC | 14.7% | |
| Market (SPY) | 7.2% | 62.3% |
| Sector (XLK) | 16.7% | 78.8% |
Fundamental Drivers
The 40.8% change in KLAC stock from 1/31/2026 to 8/11/2026 was primarily driven by a 32.2% change in the company's P/E Multiple.| (LTM values as of) | 1312026 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 142.43 | 200.47 | 40.8% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 12,745 | 13,579 | 6.6% |
| Net Income Margin (%) | 35.8% | 35.6% | -0.5% |
| P/E Multiple | 41.0 | 54.2 | 32.2% |
| Shares Outstanding (Mil) | 1,313 | 1,307 | 0.5% |
| Cumulative Contribution | 40.8% |
Market Drivers
1/31/2026 to 8/11/2026| Return | Correlation | |
|---|---|---|
| KLAC | 40.8% | |
| Market (SPY) | 11.7% | 61.5% |
| Sector (XLK) | 29.5% | 77.2% |
Fundamental Drivers
The 129.5% change in KLAC stock from 7/31/2025 to 8/11/2026 was primarily driven by a 73.0% change in the company's P/E Multiple.| (LTM values as of) | 7312025 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 87.34 | 200.47 | 129.5% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 11,550 | 13,579 | 17.6% |
| Net Income Margin (%) | 32.0% | 35.6% | 11.2% |
| P/E Multiple | 31.3 | 54.2 | 73.0% |
| Shares Outstanding (Mil) | 1,326 | 1,307 | 1.5% |
| Cumulative Contribution | 129.5% |
Market Drivers
7/31/2025 to 8/11/2026| Return | Correlation | |
|---|---|---|
| KLAC | 129.5% | |
| Market (SPY) | 22.9% | 59.7% |
| Sector (XLK) | 42.2% | 73.3% |
Fundamental Drivers
The 300.1% change in KLAC stock from 7/31/2023 to 8/11/2026 was primarily driven by a 175.3% change in the company's P/E Multiple.| (LTM values as of) | 7312023 | 8112026 | Change |
|---|---|---|---|
| Stock Price ($) | 50.11 | 200.47 | 300.1% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 10,628 | 13,579 | 27.8% |
| Net Income Margin (%) | 33.0% | 35.6% | 7.8% |
| P/E Multiple | 19.7 | 54.2 | 175.3% |
| Shares Outstanding (Mil) | 1,379 | 1,307 | 5.5% |
| Cumulative Contribution | 300.1% |
Market Drivers
7/31/2023 to 8/11/2026| Return | Correlation | |
|---|---|---|
| KLAC | 300.1% | |
| Market (SPY) | 74.3% | 64.6% |
| Sector (XLK) | 112.6% | 77.0% |
Price Returns Compared
| 2021 | 2022 | 2023 | 2024 | 2025 | 2026 | Total [1] | |
|---|---|---|---|---|---|---|---|
| Returns | |||||||
| KLAC Return | 68% | -11% | 56% | 9% | 94% | 59% | 688% |
| Peers Return | 66% | -39% | 74% | -2% | 51% | 85% | 381% |
| S&P 500 Return | 27% | -19% | 24% | 23% | 16% | 13% | 106% |
Monthly Win Rates [3] | |||||||
| KLAC Win Rate | 75% | 42% | 67% | 42% | 58% | 75% | |
| Peers Win Rate | 68% | 33% | 65% | 48% | 62% | 68% | |
| S&P 500 Win Rate | 75% | 42% | 67% | 75% | 67% | 50% | |
Max Drawdowns [4] | |||||||
| KLAC Max Drawdown | -19% | -40% | -16% | -31% | -26% | -44% | |
| Peers Max Drawdown | -21% | -53% | -24% | -37% | -44% | -43% | |
| S&P 500 Max Drawdown | -5% | -25% | -10% | -8% | -19% | -9% | |
[1] Cumulative total returns since the beginning of 2021
[2] Peers: AMAT, LRCX, ONTO, VECO, MKSI. See KLAC Returns vs. Peers.
[3] Win Rate = % of calendar months in which monthly returns were positive
[4] Max drawdown represents maximum peak-to-trough decline within a year
[5] 2026 data is for the year up to 8/11/2026 (YTD)
How Low Can It Go
| Event | KLAC | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.4% | -18.8% |
| % Gain to Breakeven | 34.1% | 23.1% |
| Time to Breakeven | 39 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -22.0% | -7.8% |
| % Gain to Breakeven | 28.2% | 8.5% |
| Time to Breakeven | 318 days | 18 days |
| 2023 SVB Regional Banking Crisis | ||
| % Loss | -11.3% | -6.7% |
| % Gain to Breakeven | 12.7% | 7.1% |
| Time to Breakeven | 19 days | 31 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -38.9% | -24.5% |
| % Gain to Breakeven | 63.7% | 32.4% |
| Time to Breakeven | 213 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -33.8% | -33.7% |
| % Gain to Breakeven | 51.0% | 50.9% |
| Time to Breakeven | 40 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -20.3% | -19.2% |
| % Gain to Breakeven | 25.5% | 23.8% |
| Time to Breakeven | 37 days | 105 days |
In The Past
KLA's stock fell -25.4% during the 2025 US Tariff Shock. Such a loss loss requires a 34.1% gain to breakeven.
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Asset Allocation
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| Event | KLAC | S&P 500 |
|---|---|---|
| 2025 US Tariff Shock | ||
| % Loss | -25.4% | -18.8% |
| % Gain to Breakeven | 34.1% | 23.1% |
| Time to Breakeven | 39 days | 79 days |
| 2024 Yen Carry Trade Unwind | ||
| % Loss | -22.0% | -7.8% |
| % Gain to Breakeven | 28.2% | 8.5% |
| Time to Breakeven | 318 days | 18 days |
| 2022 Inflation Shock & Fed Tightening | ||
| % Loss | -38.9% | -24.5% |
| % Gain to Breakeven | 63.7% | 32.4% |
| Time to Breakeven | 213 days | 427 days |
| 2020 COVID-19 Crash | ||
| % Loss | -33.8% | -33.7% |
| % Gain to Breakeven | 51.0% | 50.9% |
| Time to Breakeven | 40 days | 140 days |
| Q4 2018 Fed Policy Error / Growth Scare | ||
| % Loss | -20.3% | -19.2% |
| % Gain to Breakeven | 25.5% | 23.8% |
| Time to Breakeven | 37 days | 105 days |
| 2014-2016 Oil Price Collapse | ||
| % Loss | -22.1% | -6.8% |
| % Gain to Breakeven | 28.4% | 7.3% |
| Time to Breakeven | 57 days | 15 days |
| 2011 US Debt Ceiling Crisis & European Contagion | ||
| % Loss | -22.9% | -17.9% |
| % Gain to Breakeven | 29.7% | 21.8% |
| Time to Breakeven | 54 days | 123 days |
| 2010 Eurozone Sovereign Debt Crisis / Flash Crash | ||
| % Loss | -21.2% | -15.4% |
| % Gain to Breakeven | 26.8% | 18.2% |
| Time to Breakeven | 89 days | 125 days |
| 2008-2009 Global Financial Crisis | ||
| % Loss | -68.8% | -53.4% |
| % Gain to Breakeven | 220.8% | 114.4% |
| Time to Breakeven | 810 days | 1085 days |
In The Past
KLA's stock fell -25.4% during the 2025 US Tariff Shock. Such a loss loss requires a 34.1% gain to breakeven.
Preserve Wealth
Limiting losses and compounding gains is essential to preserving wealth.
Asset Allocation
Actively managed asset allocation strategies protect wealth. Learn more.
About KLA (KLAC)
KLA Corporation (KLAC) is a leading technology provider for the global semiconductor and related nanoelectronics industries. The company specializes in designing, manufacturing, and marketing advanced process control and yield management solutions. Essentially, KLA's sophisticated tools and software enable chip manufacturers to detect, analyze, and manage defects and inefficiencies throughout the intricate semiconductor fabrication process, thereby improving chip quality and maximizing production yield.
KLA's extensive product portfolio addresses various critical stages of manufacturing. For chip and wafer production, they provide essential defect inspection and review systems, precise metrology solutions, in-situ process monitoring, computational lithography software, and data analytics systems. Beyond core chip manufacturing, KLA also offers solutions for reticle (mask) manufacturing and advanced packaging processes, including wafer inspection, die sorting, and integrated circuit component inspection. Their primary customers include semiconductor chip manufacturers, mask shops, and companies operating in emerging sectors such as compound semiconductors, power devices, LEDs, and data storage.
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KLA is like the ASML of quality control and yield management for the semiconductor industry, providing the essential inspection and metrology tools that ensure chips are made perfectly.
KLA is like GE Healthcare for semiconductor factories, but instead of diagnosing human health, they provide the advanced diagnostic and inspection systems that ensure the quality and efficiency of chip manufacturing.
KLA is like Palantir for chip factories, but instead of analyzing intelligence data for governments, they analyze manufacturing data to find defects, optimize processes, and improve the yield of complex semiconductors.
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- Defect Inspection and Review Systems: Systems designed to identify and analyze defects on semiconductor wafers and chips.
- Metrology Solutions: Tools providing precise measurements of critical dimensions and features during semiconductor manufacturing.
- In Situ Process Monitoring Products: Systems that offer real-time monitoring of manufacturing processes within the production environment.
- Computational Lithography Software: Software used to optimize the lithography process for creating patterns on wafers.
- Data Analytics Systems: Solutions that process and analyze manufacturing data to enhance yield and process control across semiconductor fabrication.
- Wafer Processing Systems: Equipment utilized for various stages of semiconductor wafer fabrication, including advanced packaging.
- Die Sorting and Inspection Systems: Solutions for inspecting and accurately sorting individual semiconductor dies.
- IC Component Inspection and Metrology Systems: Systems for inspecting and measuring integrated circuit components at various stages.
- Reticle Inspection Systems: Specialized systems for inspecting photomasks, known as reticles, used in semiconductor lithography.
- Support and Other Services: Comprehensive services including installation, maintenance, training, and technical support for their product lines.
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Major Customers of KLA Corporation (KLAC)
KLA Corporation primarily sells its process control and yield management solutions to other companies within the semiconductor and related nanoelectronics industries, rather than to individuals. While KLA does not publicly disclose the names of individual major customers due to the competitive nature of the industry and the fact that no single customer accounts for more than 10% of its total revenues, its customer base consists of leading companies across key segments of the semiconductor supply chain. The major categories of companies that purchase KLA's products and services include:-
Integrated Device Manufacturers (IDMs): These are companies that design, manufacture, and sell their own integrated circuits.
- Examples: Intel Corporation (NASDAQ: INTC), Micron Technology, Inc. (NASDAQ: MU), Texas Instruments Incorporated (NASDAQ: TXN)
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Foundries: Companies that specialize in manufacturing integrated circuits for other fabless semiconductor companies.
- Examples: Taiwan Semiconductor Manufacturing Company Limited (NYSE: TSM), GlobalFoundries Inc. (NASDAQ: GFS), United Microelectronics Corporation (NYSE: UMC)
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Outsourced Semiconductor Assembly and Test (OSAT) Companies: Firms that provide packaging and testing services for semiconductors manufactured by other companies.
- Examples: ASE Technology Holding Co., Ltd. (NYSE: ASX), Amkor Technology, Inc. (NASDAQ: AMKR)
- Mask Shops: Companies that produce photomasks, which are critical components used in the photolithography process for manufacturing integrated circuits. These are often divisions of major foundries/IDMs or specialized independent entities.
- Manufacturers in Related Nanoelectronics Industries: This broader category includes companies involved in the production of compound semiconductors, power devices, light-emitting diodes (LEDs), microelectromechanical systems (MEMS), data storage media/heads, and other advanced electronic components.
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Rick Wallace, President and Chief Executive Officer
Rick Wallace joined KLA Instruments in 1988 as an applications engineer and has held various general management positions throughout his tenure, becoming CEO in 2006. His prior experience includes positions at Procter & Gamble and Cypress Semiconductor. Mr. Wallace has served on the Board of Directors for companies such as Marvell Technology, Splunk, Proofpoint, NetApp, SEMI, and Beckman Coulter. He once led the initiative to start a new business within KLA.
Bren Higgins, Executive Vice President and Chief Financial Officer
Bren Higgins joined KLA in 1999 and has held numerous roles within the company, including multiple division controller assignments, group controller for KLA's largest business group, senior director of financial planning and analysis, and Vice President of corporate finance. He is responsible for KLA's worldwide finance and accounting, global manufacturing, logistics and supply chain operations, business development (including mergers and acquisitions), workplace services, IT, and investor relations.
Ahmad Khan, President, Semiconductor Products and Customers
Ahmad Khan joined KLA in 2004 (or 2003) in business development and has since moved into management roles for multiple product divisions. This includes serving as general manager of the Optical Films Metrology division and Group Vice President for the Patterning Division. Before joining KLA, Mr. Khan spent nine years at Applied Materials in various project engineering and management positions.
Ben Tsai, Chief Technical Officer and Executive Vice President, Corporate Alliances
Ben Tsai has over 35 years of experience at KLA, having held a wide range of technology and leadership roles, including Vice President and general manager of the wafer inspection division. He was named Chief Technology Officer in 1994. Prior to his current role, he served as Senior Vice President of technology at Tokyo Electron Limited. Mr. Tsai holds approximately 50 patents in inspection and metrology.
John Van Camp, Executive Vice President and Chief Human Resources Officer
Before joining KLA, John Van Camp held a variety of leadership positions in human resources. His previous roles include manager at General Electric and Vice President of Human Resources at Gap Inc.
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Geopolitical Risks and Export Controls
KLA Corporation faces significant geopolitical risks, particularly from evolving U.S. government export controls and trade tensions. These include regulations from the Bureau of Industry and Security (BIS) of the U.S. Department of Commerce, which can disrupt KLA's business and limit its access to certain markets, especially China. Trade disputes, tariffs, and potential retaliatory tariffs from other countries could increase production costs, disrupt supply chains, and negatively impact demand for KLA's products, leading to order cancellations and financial losses.
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Supply Chain Disruptions and Dependence on Limited Suppliers
The company is vulnerable to supply chain disruptions, including shortages of raw materials or components. KLA has faced challenges in managing its supply chain, and for certain critical parts, it relies on a single supplier or a limited group of suppliers. Such dependencies can lead to delays in product delivery, impact customer satisfaction, and disrupt KLA's production processes, affecting revenues.
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Intense Competition and Cyclicality of the Semiconductor Industry
The semiconductor equipment market is highly competitive, with several well-established players. This intense competition can exert pressure on KLA's market share and profit margins. Additionally, the semiconductor industry is cyclical, meaning that fluctuations in capital spending on semiconductor equipment can introduce uncertainty and variability in demand for KLA's products and services.
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KLA Corporation (KLAC) operates in several significant addressable markets related to semiconductor manufacturing process control and yield management.
Semiconductor Process Control Equipment Market
The global market for semiconductor process control equipment, a primary area for KLA, was valued at approximately USD 10.34 billion in 2024 and is projected to grow to USD 16.60 billion by 2032, exhibiting a Compound Annual Growth Rate (CAGR) of 6.10%. Other estimates for this market include USD 7.58 billion in 2024, projected to reach USD 13.05 billion by 2032 with a CAGR of 7.03%, and USD 8.57 billion in 2025, expected to reach USD 12.93 billion by 2032 with a CAGR of 6.05%. In the U.S. specifically, the semiconductor process control equipment market was valued at USD 1.32 billion in 2024 and is projected to reach USD 2.30 billion by 2032, with a CAGR of 7.21%. KLA holds a leading market share of around 56% in process control.
Semiconductor Metrology and Inspection Equipment Market
This market, which includes defect inspection and review systems and metrology solutions crucial to KLA's offerings, had a global market size estimated between USD 8.98 billion and USD 9.8 billion in 2024, with projections to grow to between USD 16.21 billion by 2033 and USD 18.7 billion by 2034 at a CAGR of 6.9%. In 2025, the global market size is estimated between USD 13.03 billion and USD 14.92 billion, with projections to reach between USD 16.95 billion by 2030 and USD 27.56 billion by 2034. The U.S. market for semiconductor metrology and inspection was valued at over USD 2.6 billion in 2024.
Wafer Inspection Equipment Market
For wafer inspection equipment, a core product area for KLA, the global market size was estimated at USD 5.72 billion in 2024, is estimated to reach USD 6.23 billion in 2025, and is expected to grow to USD 9.22 billion by 2030, at a CAGR of 8.15% during the forecast period (2025-2030). Another source estimates the global market at USD 4.9 billion in 2025, projected to reach USD 13.3 billion by 2035 with a CAGR of 10.6%.
Semiconductor Defect Inspection Equipment Market
The global semiconductor defect inspection equipment market was valued at USD 6.14 billion in 2025 and is projected to grow from USD 6.59 billion in 2026 to USD 13.41 billion by 2034, exhibiting a CAGR of 9.03%.
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Expected Drivers of Future Revenue Growth for KLA Corporation (KLAC)
- Demand for AI Infrastructure: KLA Corporation is significantly benefiting from the increasing demand for artificial intelligence (AI) infrastructure across all major wafer fabrication equipment (WFE) growth markets. The company's management and analysts consistently highlight AI as a primary driver of outsized growth in the semiconductor industry, directly impacting KLA's revenue.
- Growth in Advanced Packaging: Advanced packaging solutions represent a substantial and rapidly growing revenue stream for KLA. The company has reported significant year-over-year growth in advanced packaging revenue for 2024 and 2025, with projections indicating continued strong momentum in the mid-to-high teens for 2026. This growth is driven by the increasing complexity of semiconductor designs and customer interest in applying front-end capabilities to packaging.
- Increasing Process Control Intensity for Advanced Logic and Smaller Nodes: As semiconductor manufacturing progresses to more advanced nodes, such as 2nm and beyond, the "process control intensity" required per wafer increases significantly. KLA's leadership in process control, inspection, and metrology solutions positions it to capitalize on this trend, as these technologies become even more critical for managing yield in complex chip fabrication processes for advanced logic and high-bandwidth memory (HBM).
- Consistent Growth of the Services Business: KLA's services business has demonstrated a track record of continuous year-over-year growth, contributing a predictable and recurring revenue stream. This segment provides ongoing maintenance, optimization, and support for KLA's extensive installed base of equipment, further enhancing customer success and securing revenue independent of the cyclical nature of equipment sales.
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Share Repurchases
- KLA's Board of Directors approved a new $7 billion share repurchase program in March 2026, adding to an existing $5 billion program announced in April 2025 which had $3.94 billion remaining as of December 31, 2025.
- The company's annual share repurchases amounted to $2.15 billion in 2025, $1.736 billion in 2024, and $1.312 billion in 2023.
- In the first quarter of fiscal 2026 (ending in September 2025), KLA repurchased $545 million worth of shares.
Capital Expenditures
- KLA Corporation is characterized by an "extremely asset-light" business model, with capital expenditures typically around 3% of revenue, which is noted as the lowest in the semiconductor equipment industry.
- The company's capital expenditures for fiscal year 2025 were $100.4 million.
- KLA outsources most of its hardware manufacturing, focusing its capital on optical system design, software development, and system integration.
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Peer Comparisons
| Peers to compare with: |
Financials
| Median | |
|---|---|
| Name | |
| Mkt Price | 302.89 |
| Mkt Cap | 140.9 |
| Rev LTM | 8,963 |
| Op Inc LTM | 3,193 |
| FCF LTM | 2,111 |
| FCF 3Y Avg | 1,993 |
| CFO LTM | 2,389 |
| CFO 3Y Avg | 2,224 |
Growth & Margins
| Median | |
|---|---|
| Name | |
| Rev Chg LTM | 9.9% |
| Rev Chg 3Y Avg | 6.3% |
| Rev Chg Q | 21.7% |
| QoQ Delta Rev Chg LTM | 5.2% |
| Op Inc Chg LTM | 8.9% |
| Op Inc Chg 3Y Avg | 9.0% |
| Op Mgn LTM | 23.4% |
| Op Mgn 3Y Avg | 23.3% |
| QoQ Delta Op Mgn LTM | 0.7% |
| CFO/Rev LTM | 24.5% |
| CFO/Rev 3Y Avg | 26.3% |
| FCF/Rev LTM | 19.7% |
| FCF/Rev 3Y Avg | 21.8% |
Valuation
| Median | |
|---|---|
| Name | |
| Mkt Cap | 140.9 |
| P/S | 14.2 |
| P/Op Inc | 47.6 |
| P/EBIT | 45.4 |
| P/E | 53.9 |
| P/CFO | 56.1 |
| Total Yield | 2.2% |
| Dividend Yield | 0.3% |
| FCF Yield 3Y Avg | 2.7% |
| D/E | 0.1 |
| Net D/E | -0.0 |
Returns
| Median | |
|---|---|
| Name | |
| 1M Rtn | -12.7% |
| 3M Rtn | 9.3% |
| 6M Rtn | 43.7% |
| 12M Rtn | 194.3% |
| 3Y Rtn | 254.0% |
| 1M Excs Rtn | -12.1% |
| 3M Excs Rtn | 2.8% |
| 6M Excs Rtn | 33.5% |
| 12M Excs Rtn | 171.2% |
| 3Y Excs Rtn | 162.4% |
Comparison Analyses
Segment Financials
Revenue by Segment| $ Mil | 2025 | 2024 | 2023 | 2022 | 2021 |
|---|---|---|---|---|---|
| Semiconductor Process Control | 10,947 | 8,734 | 9,324 | 7,925 | 5,735 |
| Printed Circuit Boards (PCB) and Component Inspection | 622 | 552 | 632 | 832 | 813 |
| Specialty Semiconductor Process | 587 | 529 | 543 | 457 | 369 |
| Effects of changes in foreign currency exchange rates | -0 | -3 | -3 | -2 | 2 |
| Total | 12,156 | 9,812 | 10,496 | 9,212 | 6,919 |
Price Behavior
| Market Price | $200.47 | |
| Market Cap ($ Bil) | 262.4 | |
| First Trading Date | 03/26/1990 | |
| Distance from 52W High | -33.6% | |
| 50 Days | 200 Days | |
| DMA Price | $221.60 | $165.23 |
| DMA Trend | up | up |
| Distance from DMA | -9.5% | 21.3% |
| 3M | 1YR | |
| Volatility | 85.9% | 59.8% |
| Downside Capture | 461.93 | 305.54 |
| Upside Capture | 429.69 | 330.40 |
| Correlation (SPY) | 62.4% | 60.9% |
| 1M | 2M | 3M | 6M | 1Y | 3Y | |
|---|---|---|---|---|---|---|
| Beta | 3.63 | 4.00 | 3.96 | 3.03 | 2.77 | 2.03 |
| Up Beta | 6.33 | 4.40 | 4.68 | 3.33 | 2.60 | 1.92 |
| Down Beta | -0.52 | 1.58 | 1.66 | 1.60 | 1.95 | 1.64 |
| Up Capture | 43% | 656% | 648% | 587% | 1136% | 4090% |
| Bmk +ve Days | 11 | 22 | 35 | 67 | 138 | 427 |
| Stock +ve Days | 8 | 23 | 32 | 69 | 147 | 429 |
| Down Capture | 660% | 361% | 353% | 231% | 176% | 112% |
| Bmk -ve Days | 11 | 21 | 28 | 59 | 114 | 326 |
| Stock -ve Days | 14 | 20 | 31 | 57 | 105 | 324 |
[1] Upside and downside betas calculated using positive and negative benchmark daily returns respectively
Based On 1-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KLAC | |
|---|---|---|---|---|
| KLAC | 121.2% | 59.7% | 1.56 | - |
| Sector ETF (XLK) | 40.7% | 25.9% | 1.28 | 73.7% |
| Equity (SPY) | 22.1% | 12.8% | 1.28 | 60.4% |
| Gold (GLD) | 28.2% | 28.4% | 0.86 | 27.1% |
| Commodities (DBC) | 37.4% | 20.1% | 1.47 | -3.5% |
| Real Estate (VNQ) | 12.5% | 13.8% | 0.61 | 3.5% |
| Bitcoin (BTCUSD) | -45.3% | 42.9% | -1.28 | 25.5% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 5-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KLAC | |
|---|---|---|---|---|
| KLAC | 43.5% | 46.1% | 0.93 | - |
| Sector ETF (XLK) | 20.2% | 25.8% | 0.70 | 77.9% |
| Equity (SPY) | 13.3% | 17.2% | 0.60 | 68.0% |
| Gold (GLD) | 18.8% | 18.6% | 0.82 | 16.1% |
| Commodities (DBC) | 9.3% | 19.6% | 0.36 | 11.9% |
| Real Estate (VNQ) | 1.9% | 18.9% | -0.00 | 30.8% |
| Bitcoin (BTCUSD) | 10.9% | 52.8% | 0.39 | 26.7% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Based On 10-Year Data
| Annualized Return | Annualized Volatility | Sharpe Ratio | Correlation with KLAC | |
|---|---|---|---|---|
| KLAC | 40.9% | 43.2% | 0.94 | - |
| Sector ETF (XLK) | 24.4% | 24.9% | 0.89 | 77.3% |
| Equity (SPY) | 15.3% | 17.9% | 0.73 | 69.4% |
| Gold (GLD) | 12.0% | 16.2% | 0.61 | 12.4% |
| Commodities (DBC) | 7.9% | 18.0% | 0.35 | 17.3% |
| Real Estate (VNQ) | 4.5% | 20.7% | 0.18 | 39.3% |
| Bitcoin (BTCUSD) | 59.4% | 66.1% | 0.99 | 20.4% |
Smart multi-asset allocation framework can stack odds in your favor. Learn How
Returns Analyses
Earnings Returns History
Updated 8/6/2026| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/28/2026 | -10.8% | 2.4% | |
| 4/29/2026 | -3.6% | 0.0% | 5.9% |
| 1/29/2026 | -15.2% | -21.0% | -8.8% |
| 10/29/2025 | -1.7% | -0.7% | -6.2% |
| 7/31/2025 | 0.9% | 3.8% | -0.6% |
| 4/30/2025 | -3.8% | -1.2% | 8.0% |
| 1/30/2025 | -0.6% | 2.6% | -6.7% |
| 10/30/2024 | -3.7% | -3.2% | -6.2% |
| ... | |||
| SUMMARY STATS | |||
| # Positive | 13 | 17 | 15 |
| # Negative | 12 | 8 | 9 |
| Median Positive | 3.7% | 4.0% | 8.0% |
| Median Negative | -3.7% | -3.2% | -6.2% |
| Max Positive | 9.0% | 15.7% | 33.9% |
| Max Negative | -15.2% | -21.0% | -11.3% |
| Forward Returns | |||
|---|---|---|---|
| Earnings Date | 1D Returns | 5D Returns | 21D Returns |
| 7/28/2026 | -10.8% | 2.4% | |
| 4/29/2026 | -3.6% | 0.0% | 5.9% |
| 1/29/2026 | -15.2% | -21.0% | -8.8% |
| 10/29/2025 | -1.7% | -0.7% | -6.2% |
| 7/31/2025 | 0.9% | 3.8% | -0.6% |
| 4/30/2025 | -3.8% | -1.2% | 8.0% |
| 1/30/2025 | -0.6% | 2.6% | -6.7% |
| 10/30/2024 | -3.7% | -3.2% | -6.2% |
| 7/24/2024 | 0.9% | 8.9% | 5.8% |
| 4/25/2024 | 4.9% | 1.4% | 16.0% |
| 1/25/2024 | -6.6% | -6.6% | 6.8% |
| 10/25/2023 | 0.7% | 4.8% | 22.5% |
| 7/27/2023 | 5.9% | 4.1% | 0.1% |
| 4/26/2023 | 7.6% | 5.8% | 21.9% |
| 1/26/2023 | -6.9% | -3.4% | -11.3% |
| 10/26/2022 | 0.8% | 2.0% | 24.5% |
| 7/28/2022 | 3.7% | 7.4% | -2.6% |
| 4/28/2022 | -4.1% | 0.2% | 11.9% |
| 1/27/2022 | 1.3% | 3.3% | -3.4% |
| 10/27/2021 | 4.3% | 15.6% | 17.4% |
| 7/29/2021 | 9.0% | 10.7% | 7.7% |
| 4/29/2021 | -3.4% | -3.2% | -2.6% |
| 2/3/2021 | 2.8% | 4.0% | 3.6% |
| 10/28/2020 | 6.0% | 15.7% | 33.9% |
| 8/3/2020 | -1.3% | -2.2% | 0.6% |
| SUMMARY STATS | |||
| # Positive | 13 | 17 | 15 |
| # Negative | 12 | 8 | 9 |
| Median Positive | 3.7% | 4.0% | 8.0% |
| Median Negative | -3.7% | -3.2% | -6.2% |
| Max Positive | 9.0% | 15.7% | 33.9% |
| Max Negative | -15.2% | -21.0% | -11.3% |
SEC Filings
Expand for More| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-K |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 01/30/2026 | 10-Q |
| 09/30/2025 | 10/31/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-K |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 01/31/2025 | 10-Q |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/05/2024 | 10-K |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 01/26/2024 | 10-Q |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-K |
| 03/31/2023 | 04/28/2023 | 10-Q |
| 12/31/2022 | 01/27/2023 | 10-Q |
| 09/30/2022 | 10/28/2022 | 10-Q |
| Report Date | Filing Date | Filing |
|---|---|---|
| 06/30/2026 | 08/06/2026 | 10-K |
| 03/31/2026 | 04/30/2026 | 10-Q |
| 12/31/2025 | 01/30/2026 | 10-Q |
| 09/30/2025 | 10/31/2025 | 10-Q |
| 06/30/2025 | 08/08/2025 | 10-K |
| 03/31/2025 | 05/01/2025 | 10-Q |
| 12/31/2024 | 01/31/2025 | 10-Q |
| 09/30/2024 | 10/31/2024 | 10-Q |
| 06/30/2024 | 08/05/2024 | 10-K |
| 03/31/2024 | 04/26/2024 | 10-Q |
| 12/31/2023 | 01/26/2024 | 10-Q |
| 09/30/2023 | 10/27/2023 | 10-Q |
| 06/30/2023 | 08/04/2023 | 10-K |
| 03/31/2023 | 04/28/2023 | 10-Q |
| 12/31/2022 | 01/27/2023 | 10-Q |
| 09/30/2022 | 10/28/2022 | 10-Q |
| 06/30/2022 | 08/05/2022 | 10-K |
| 03/31/2022 | 04/29/2022 | 10-Q |
| 12/31/2021 | 01/28/2022 | 10-Q |
| 09/30/2021 | 10/28/2021 | 10-Q |
| 06/30/2021 | 08/06/2021 | 10-K |
| 03/31/2021 | 04/30/2021 | 10-Q |
| 12/31/2020 | 02/04/2021 | 10-Q |
| 09/30/2020 | 10/30/2020 | 10-Q |
| 06/30/2020 | 08/10/2020 | 10-K |
| 03/31/2020 | 05/06/2020 | 10-Q |
| 12/31/2019 | 02/05/2020 | 10-Q |
| 09/30/2019 | 10/31/2019 | 10-Q |
Recent Forward Guidance
Updated 7/29/2026Latest: Q4 2026 Earnings Reported 7/28/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q1 2027 Revenue | 3.80 Bil | 4.00 Bil | 4.20 Bil | 11.9% | Higher New | Guidance: 3.58 Bil for Q4 2026 | |
| Q1 2027 GAAP Gross Margin | 60.6% | 61.6% | 62.6% | 0.9% | Higher New | Guidance: 60.72% for Q4 2026 | |
| Q1 2027 Non-GAAP Gross Margin | 61.5% | 62.5% | 63.5% | 0.8% | Higher New | Guidance: 61.75% for Q4 2026 | |
| Q1 2027 GAAP Diluted EPS | 1.04 | 1.14 | 1.24 | -88.2% | Lower New | Guidance: 9.66 for Q4 2026 | |
| Q1 2027 Non-GAAP Diluted EPS | 1.06 | 1.16 | 1.26 | -88.2% | Lower New | Guidance: 9.87 for Q4 2026 | |
Prior: Q3 2026 Earnings Reported 4/29/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q4 2026 Revenue | 3.38 Bil | 3.58 Bil | 3.77 Bil | 6.7% | Higher New | Guidance: 3.35 Bil for Q3 2026 | |
| Q4 2026 GAAP Gross Margin | 59.72% | 60.72% | 61.72% | 0.1% | Higher New | Guidance: 60.62% for Q3 2026 | |
| Q4 2026 Non-GAAP Gross Margin | 60.75% | 61.75% | 62.75% | 0.0% | Same New | Guidance: 61.75% for Q3 2026 | |
| Q4 2026 GAAP Diluted EPS | 8.66 | 9.66 | 10.7 | 9.2% | Higher New | Guidance: 8.85 for Q3 2026 | |
| Q4 2026 Non-GAAP Diluted EPS | 8.87 | 9.87 | 10.9 | 8.7% | Higher New | Guidance: 9.08 for Q3 2026 | |
Q2 2026 Earnings Reported 1/29/2026
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q3 2026 Revenue | 3.20 Bil | 3.35 Bil | 3.50 Bil | 3.9% | Higher New | Guidance: 3.23 Bil for Q2 2026 | |
| Q3 2026 GAAP Gross Margin | 59.62% | 60.62% | 61.62% | -0.2% | Lower New | Guidance: 60.8% for Q2 2026 | |
| Q3 2026 Non-GAAP Gross Margin | 60.75% | 61.75% | 62.75% | -0.2% | Lower New | Guidance: 62.0% for Q2 2026 | |
| Q3 2026 GAAP Diluted EPS | 8.07 | 8.85 | 9.63 | 4.6% | Higher New | Guidance: 8.46 for Q2 2026 | |
| Q3 2026 Non-GAAP Diluted EPS | 8.3 | 9.08 | 9.86 | 4.4% | Higher New | Guidance: 8.7 for Q2 2026 | |
Q1 2026 Earnings Reported 10/29/2025
| Forward Guidance | Guidance Change | ||||||
|---|---|---|---|---|---|---|---|
| Metric | Low | Mid | High | % Chg | % Delta | Change | Prior |
| Q2 2026 Revenue | 3.08 Bil | 3.23 Bil | 3.38 Bil | 2.4% | Higher New | Guidance: 3.15 Bil for Q1 2026 | |
| Q2 2026 GAAP Gross Margin | 59.8% | 60.8% | 61.8% | 0.1% | Higher New | Guidance: 60.7% for Q1 2026 | |
| Q2 2026 Non-GAAP Gross Margin | 61.0% | 62.0% | 63.0% | 0.0% | Same New | Guidance: 62.0% for Q1 2026 | |
| Q2 2026 GAAP Diluted EPS | 7.68 | 8.46 | 9.24 | 2.2% | Higher New | Guidance: 8.28 for Q1 2026 | |
| Q2 2026 Non-GAAP Diluted EPS | 7.92 | 8.7 | 9.48 | 2.0% | Higher New | Guidance: 8.53 for Q1 2026 | |
Insider Activity
Updated 8/10/2026| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8102026 | 197.57 | 21,831 | 4,313,151 | 7,644,582 | Form |
| 2 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8102026 | 197.57 | 2,405 | 475,156 | 2,720,744 | Form |
| 3 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8052026 | 195.50 | 13,802 | 2,698,291 | 4,322,472 | Form |
| 4 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8052026 | 195.50 | 4,504 | 880,532 | 1,558,614 | Form |
| 5 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8042026 | 191.59 | 4,295 | 822,879 | 6,880,348 | Form |
| # | Owner | Title | Holding | Action | Filing Date | Price | Shares | Transacted Value | Value of Held Shares | Form |
|---|---|---|---|---|---|---|---|---|---|---|
| 1 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8102026 | 197.57 | 21,831 | 4,313,151 | 7,644,582 | Form |
| 2 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8102026 | 197.57 | 2,405 | 475,156 | 2,720,744 | Form |
| 3 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8052026 | 195.50 | 13,802 | 2,698,291 | 4,322,472 | Form |
| 4 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8052026 | 195.50 | 4,504 | 880,532 | 1,558,614 | Form |
| 5 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8042026 | 191.59 | 4,295 | 822,879 | 6,880,348 | Form |
| 6 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8042026 | 191.59 | 1,565 | 299,838 | 2,390,363 | Form |
| 7 | Higgins, Bren D | EVP & Chief Financial Officer | Direct | Sell | 7062026 | 265.69 | 27,701 | 7,359,879 | 70,001,928 | Form |
| 8 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 7062026 | 265.69 | 196 | 52,075 | 5,200,900 | Form |
| 9 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 7022026 | 285.30 | 14,392 | 4,106,038 | 15,225,689 | Form |
| 10 | Wallace, Richard P | President and CEO | Direct | Sell | 6112026 | 2213.37 | 4,512 | 9,986,725 | 157,997,008 | Form |
| 11 | Wallace, Richard P | President and CEO | Direct | Sell | 5122026 | 1794.00 | 4,512 | 8,094,528 | 136,155,644 | Form |
| 12 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 5122026 | 1879.02 | 297 | 558,069 | 3,678,165 | Form |
| 13 | Hanley, Jeneanne Michelle | Direct | Sell | 5122026 | 1874.71 | 550 | 1,031,088 | 6,656,579 | Form | |
| 14 | Higgins, Bren D | EVP & Chief Financial Officer | Direct | Sell | 12182025 | 1237.01 | 2,254 | 2,788,221 | 39,775,314 | Form |
| 15 | Wallace, Richard P | President and CEO | Direct | Sell | 11132025 | 1203.10 | 10,803 | 12,997,089 | 97,704,964 | Form |
| 16 | Khan, Ahmad A | President, Semi. Prod. & Cust. | Direct | Sell | 9092025 | 900.00 | 4,564 | 4,107,600 | 20,527,427 | Form |
| 17 | Khan, Ahmad A | President, Semi. Prod. & Cust. | Direct | Sell | 9022025 | 881.50 | 13,716 | 12,090,654 | 24,128,640 | Form |
| 18 | Higgins, Bren D | EVP & Chief Financial Officer | Direct | Sell | 8222025 | 878.53 | 2,301 | 2,021,498 | 30,228,812 | Form |
| 19 | Lorig, Brian | EVP, KLA Global Services | Direct | Sell | 8142025 | 913.68 | 8,049 | 7,354,210 | 10,488,138 | Form |
| 20 | Wallace, Richard P | President and CEO | Direct | Sell | 8142025 | 913.68 | 10,801 | 9,868,658 | 84,805,958 | Form |
| 21 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8122025 | 913.00 | 338 | 308,594 | 2,058,350 | Form |
| 22 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8082025 | 913.00 | 1,022 | 933,086 | 7,123,140 | Form |
| 23 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8072025 | 917.00 | 1,920 | 1,760,640 | 2,203,486 | Form |
| 24 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8072025 | 917.00 | 511 | 468,587 | 1,069,943 | Form |
| 25 | Wilkinson, Mary Beth | EVP, CLO and Secretary | Direct | Sell | 8052025 | 896.75 | 763 | 684,220 | 5,168,270 | Form |
| 26 | Kirloskar, Virendra A | SVP & Chief Accounting Officer | Direct | Sell | 8052025 | 896.75 | 320 | 286,960 | 1,906,563 | Form |
Investor Activity (13F)
Updated Aug 12, 2026Active managers (13F portfolio over $250M, at least 3 holdings) with a position over $5M that is either over 10% of their portfolio or held in a concentrated book of 50 or fewer total positions. Index/ETF, sovereign, bank, community-bank and charitable/donor-advised filers are excluded.
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Uhlmann Price Securities, LLC | $1.2 Bil | 82.1% | 253 | New | 13F |
| Oaktop Capital Management Ii, L.P. | $457.5 Mil | 34.1% | 14 | Hold | 13F |
| Harbor Island Capital LLC | $20.0 Mil | 7.4% | 16 | Hold | 13F |
| Triodos Investment Management BV | $73.5 Mil | 5.6% | 49 | TRIM -13.4% | 13F |
| Local Pensions Partnership Investment Ltd | $252.0 Mil | 5.4% | 32 | TRIM -18.0% | 13F |
| Carmel Capital Management L.L.C. | $17.6 Mil | 5.1% | 25 | TRIM -11.6% | 13F |
| Stockbridge Partners LLC | $196.2 Mil | 4.7% | 16 | TRIM -12.9% | 13F |
| Jia Investment Alliance PTE. LTD. | $43.6 Mil | 4.6% | 24 | Hold | 13F |
| Unio Capital LLC | $18.4 Mil | 4.0% | 21 | New | 13F |
| Summit Street Capital Management, LLC | $22.1 Mil | 3.1% | 31 | Hold | 13F |
| Tyro Capital Management LLC | $9.0 Mil | 2.3% | 23 | New | 13F |
| Promethos Capital, LLC | $8.2 Mil | 2.2% | 46 | TRIM -5.6% | 13F |
| Anther Capital Ltd | $70.4 Mil | 1.8% | 31 | New | 13F |
| Walter Public Investments Inc. | $7.1 Mil | 1.7% | 48 | TRIM -30.6% | 13F |
| Kinetic Partners Management, LP | $29.3 Mil | 1.6% | 49 | New | 13F |
| PineStone Asset Management Inc. | $157.6 Mil | 1.1% | 44 | New | 13F |
| Artemis Wealth Advisors, LLC | $5.3 Mil | 0.8% | 44 | ADD +80.0% | 13F |
| Third Point LLC | $16.2 Mil | 0.8% | 33 | New | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Uhlmann Price Securities, LLC | $1.2 Bil | 82.1% | 253 | New | 13F |
| PineStone Asset Management Inc. | $157.6 Mil | 1.1% | 44 | New | 13F |
| Anther Capital Ltd | $70.4 Mil | 1.8% | 31 | New | 13F |
| Kinetic Partners Management, LP | $29.3 Mil | 1.6% | 49 | New | 13F |
| Unio Capital LLC | $18.4 Mil | 4.0% | 21 | New | 13F |
| Third Point LLC | $16.2 Mil | 0.8% | 33 | New | 13F |
| Tyro Capital Management LLC | $9.0 Mil | 2.3% | 23 | New | 13F |
| Artemis Wealth Advisors, LLC | $5.3 Mil | 0.8% | 44 | ADD +80.0% | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | As Of | Filing |
|---|---|---|---|---|---|---|
| Dakota Wealth Management | $1.1 Bil | 18.7% | 773 | Exited | Dec 31, 2025 | 13F |
| Analog Century Management LP | $87.1 Mil | 4.3% | 24 | Exited | Dec 31, 2025 | 13F |
| Ariose Capital Management Ltd | $16.2 Mil | 5.4% | 14 | Exited | Dec 31, 2025 | 13F |
| MIG Capital, LLC | $5.4 Mil | 0.9% | 43 | Exited | Dec 31, 2025 | 13F |
| Walter Public Investments Inc. | $7.1 Mil | 1.7% | 48 | TRIM -30.6% | Mar 31, 2026 | 13F |
| Local Pensions Partnership Investment Ltd | $252.0 Mil | 5.4% | 32 | TRIM -18.0% | Mar 31, 2026 | 13F |
| Triodos Investment Management BV | $73.5 Mil | 5.6% | 49 | TRIM -13.4% | Mar 31, 2026 | 13F |
| Stockbridge Partners LLC | $196.2 Mil | 4.7% | 16 | TRIM -12.9% | Mar 31, 2026 | 13F |
| Carmel Capital Management L.L.C. | $17.6 Mil | 5.1% | 25 | TRIM -11.6% | Mar 31, 2026 | 13F |
| Promethos Capital, LLC | $8.2 Mil | 2.2% | 46 | TRIM -5.6% | Mar 31, 2026 | 13F |
| Active Manager | Value | % of Portfolio | Total Positions | QoQ | Filing |
|---|---|---|---|---|---|
| Uhlmann Price Securities, LLC | $1.2 Bil | 82.1% | 253 | New | 13F |
| Oaktop Capital Management Ii, L.P. | $457.5 Mil | 34.1% | 14 | Hold | 13F |
| Local Pensions Partnership Investment Ltd | $252.0 Mil | 5.4% | 32 | TRIM -18.0% | 13F |
| Stockbridge Partners LLC | $196.2 Mil | 4.7% | 16 | TRIM -12.9% | 13F |
| PineStone Asset Management Inc. | $157.6 Mil | 1.1% | 44 | New | 13F |
| Triodos Investment Management BV | $73.5 Mil | 5.6% | 49 | TRIM -13.4% | 13F |
| Anther Capital Ltd | $70.4 Mil | 1.8% | 31 | New | 13F |
| Jia Investment Alliance PTE. LTD. | $43.6 Mil | 4.6% | 24 | Hold | 13F |
| Kinetic Partners Management, LP | $29.3 Mil | 1.6% | 49 | New | 13F |
| Summit Street Capital Management, LLC | $22.1 Mil | 3.1% | 31 | Hold | 13F |
| Harbor Island Capital LLC | $20.0 Mil | 7.4% | 16 | Hold | 13F |
| Unio Capital LLC | $18.4 Mil | 4.0% | 21 | New | 13F |
| Carmel Capital Management L.L.C. | $17.6 Mil | 5.1% | 25 | TRIM -11.6% | 13F |
| Third Point LLC | $16.2 Mil | 0.8% | 33 | New | 13F |
| Tyro Capital Management LLC | $9.0 Mil | 2.3% | 23 | New | 13F |
| Promethos Capital, LLC | $8.2 Mil | 2.2% | 46 | TRIM -5.6% | 13F |
| Walter Public Investments Inc. | $7.1 Mil | 1.7% | 48 | TRIM -30.6% | 13F |
| Artemis Wealth Advisors, LLC | $5.3 Mil | 0.8% | 44 | ADD +80.0% | 13F |
KLAC Trade Sentinel
Constructive
CONVICTION RATIONALE
Conviction is constructive due to a clear disconnect between accelerating operational momentum and recent stock performance. KLA's revenue growth is quickening, driven by the AI investment cycle, and its backlog provides high visibility. The market has punished the stock based on a confusing earnings signal that appears to be a data error, creating an opportunity if execution remains solid.
STOCK ARCHETYPE
Capital Equipment ManufacturerRevenue = (Number of new fab lines + Number of existing line upgrades) * (Process Control Intensity per line) + (Installed Base * Service Contract Attach Rate) Mix shift towards the most advanced, highest-margin systems required for leading-edge nodes and new technologies like gate-all-around and HBM, driven by the AI investment cycle.
INVESTMENT THESIS
Evidence suggests KLA's critical role in complex AI chip manufacturing is driving a durable growth acceleration the market is misinterpreting.
- Management raised its 2026 wafer equipment market outlook to the low $150 billion range.
- The company has a stated backlog of approximately $12.5 billion.
- Latest-quarter revenue growth accelerated to 15.2% year-over-year.
- Advanced packaging revenue is expected to grow over 70% to in calendar 2026.
PRIMARY RISK
The recent spike in accounts receivable, up 31.1% year-over-year, could signal that strong reported revenue is not converting to cash, indicating potential channel stuffing or collection issues.
- Accounts receivable grew 31.1% YoY, more than double the revenue growth of 15.2%.
- The stock fell 16.0% in two days following its most recent earnings report.
- Revenue from China was 33% in fiscal 2025, representing significant geopolitical risk.
- Management has cited tariff headwinds and a challenging memory pricing environment as margin pressures.
| KPI | Status | Rationale |
|---|---|---|
| Overall Revenue Growth | $3.66 billion in the June 2026 quarter, representing 15.2% year-over-year growth - Accelerating | Management attributes the accelerating growth to strong investment in AI infrastructure, continued demand in leading-edge foundry/logic, and increasing process control intensity across memory and advanced packaging. The company's guidance for the upcoming September quarter implies further acceleration in its year-over-year growth. |
| Advanced Packaging Revenue Growth | An outlook for calendar 2026 revenue of approximately $1.1 billion, representing more than 70% year-over-year growth. - Accelerating | Management states this growth is almost twice as fast as the overall advanced packaging market, driven by the increasing complexity of AI and high-performance computing packages. This segment is a key part of the company's outperformance narrative. |
| Services Revenue Growth | 17% year-over-year (Q4 FY2026) | Indicates strong, recurring revenue from a growing installed base and high fab utilization rates, providing a stable and predictable component to the overall revenue mix. |
AI Super-Cycle vs. Earnings Quality Scare
BULL VIEW
The AI-driven need for KLA's tools is real and accelerating, evidenced by a $12.5 billion backlog and raised industry outlook. The recent stock drop was an overreaction to a data error.
CORE TENSION
Can accelerating revenue (up 15.2% YoY) and a strong order book overcome fears sparked by accounts receivable growing more than twice as fast as sales?
PREVAILING SENTIMENT
The latest forward-looking evidence, including management's guidance for 20% growth in the second half of 2026, favors the view that underlying business momentum remains strong.
BEAR VIEW
The 31.1% surge in accounts receivable is a classic red flag for a cyclical peak, suggesting revenue quality is deteriorating despite strong headline numbers. The market's reaction is prescient.
| Timeline | Event & Metric To Watch |
|---|---|
Sept. 1, 2026 | Quarterly Dividend Payment Watch: The company's next quarterly cash dividend of $0.23 per share is scheduled to be paid. |
quarter ending in September | Current Guidance Period Ends Watch: The company's guidance for Q1 FY2027 covers the quarter ending in September. |
Late October 2026 | Negative Earnings Surprise Watch: Actual Q1 EPS versus the new, sharply lower guidance, and any further deterioration in the Q2 outlook. |
10/20/2026 | Peer-Driven Sentiment Shift Watch: LRCX earnings report and guidance, specifically commentary on memory market demand, China, and overall WFE outlook. |
10/20/2026 | Lam Research Earnings Report Watch: Peer Lam Research (LRCX) is scheduled to report its quarterly earnings. |
11/12/2026 | Applied Materials Earnings Report Watch: Peer Applied Materials (AMAT) is scheduled to report its quarterly earnings. |
No set date | New China Export Controls Watch: Announcements from the U.S. Department of Commerce or Bureau of Industry and Security (BIS) regarding semiconductor equipment export rules. |
October 12 | Applied Materials EPIC Center Unveiling Watch: Peer Applied Materials (AMAT) is scheduled to unveil its new EPIC Center in Sunnyvale, California. |
October 13 | Applied Materials Investor Presentation Watch: Peer Applied Materials (AMAT) is scheduled to hold an investor breakfast presentation. |
| Date | Event | Stock Impact |
|---|---|---|
2026-07-28 | Fourth Quarter Results and Guidance Details: Reported Q4 revenue of $3.66 billion and non-GAAP EPS of $1.05. Issued Q1 guidance with a severe -88.2% cut to non-GAAP EPS, triggering a -16.0% stock reaction. | -16.3% $203.36 -> $170.19 |
2026-06-11 | Stock Split Effected Details: On June 11, 2026, the company effected a ten-for-one stock split. All share and per-share information has been retroactively adjusted. | +19.2% $213.56 -> $254.54 |
2026-05-21 | Ten-for-One Stock Split Announced Details: The company announced its board of directors approved a ten-for-one forward stock split of its common stock. | +3.2% $182.95 -> $188.84 |
2026-04-29 | Third Quarter Results Reported Details: For Q3 FY26, total revenues were $3.415 billion, and non-GAAP diluted EPS was $9.40, both above the midpoints of guidance. | -3.2% $180.67 -> $174.81 |
2026-03-12 | Investor Day Announcements Details: The company announced a new $7 billion share repurchase authorization and a 21% increase in its quarterly dividend to $2.30 per share. March 2026 quarter guidance was reaffirmed. | -3.2% $146.31 -> $141.68 |
2026-02-05 | Quarterly Dividend Declared Details: The Board of Directors declared a quarterly cash dividend of $1.90 per share, payable on March 3, 2026. | +10.4% $130.39 -> $143.92 |
Position Sizing
1% - 2%
MINIMAL POSITION
Sizing is volatility-based: KLAC trades at roughly 75% annualized options-implied volatility versus about 13% for the S&P 500 (5.7x the market), around the 92nd percentile of its own trailing year. A 1% - 2% position keeps a single-name swing of that size within a diversified portfolio's risk budget.
Diversification Alternatives
AMAT - Applied Materials, Inc.
Diversified Market LeaderOffers broader exposure to the entire wafer fab equipment market beyond process control. Its significantly larger scale in revenue and R&D provides a more integrated portfolio for high-volume customers.
LRCX - Lam Research
Memory Cycle ExposureProvides more concentrated exposure to the memory segment of the semiconductor market, particularly DRAM and NAND, which has its own distinct cyclical drivers like HBM for AI.
KLA is the indispensable quality control gatekeeper for the AI revolution, selling the 'rulers and magnifying glasses' required to manufacture the world's most complex chips.
As semiconductor manufacturing pushes physical limits to power AI, KLA's dominance in process control becomes increasingly critical. Its equipment is essential for ensuring yield and performance in leading-edge logic, high-bandwidth memory (HBM), and advanced packaging. This positions the company to directly benefit from the rising complexity and value of each wafer, making it a key enabler and beneficiary of the entire AI infrastructure build-out.
News of accelerating wafer fab equipment (WFE) spending, announcements of new leading-edge fab constructions, and reports of increasing process control intensity at major chipmakers.
A slowdown in the transition to next-generation process nodes (e.g., 2-nanometer), significant breakthroughs in process control by a competitor, or a sharp, sustained downturn in semiconductor capital expenditures.
Short-term stock price volatility or minor fluctuations in quarterly geographic revenue mix.
Repricing Catalyst
The accelerating investment in AI infrastructure, which is strengthening demand signals, improving visibility, and driving management to raise its outlook for the wafer equipment market for calendar 2026.
Semiconductor Process Control
$11.9B TTM (91% of Total)What It Is
Sells a comprehensive portfolio of inspection, metrology, and software products, along with related services, to integrated circuit, wafer, reticle/mask, and chemical/materials manufacturers. These systems support the entire fabrication process from R&D to high-volume production.
Who Pays & How
The world's leading semiconductor manufacturers pay for these solutions to achieve target yields, accelerate production ramps, and improve profitability by managing nanometric-level product defects in increasingly complex manufacturing processes.
Competition
Specialty Semiconductor Process
$566M TTM (4% of Total)What It Is
Sells advanced vacuum deposition and etching process tools to a broad range of specialty semiconductor customers, including manufacturers of microelectromechanical systems (MEMS), radio frequency (RF) communication chips, and power semiconductors.
Who Pays & How
Specialty semiconductor manufacturers pay for these process tools to fabricate devices for specific applications like automotive and industrial.
Competition
Printed Circuit Boards (PCB) and Component Inspection
$663M TTM (5% of Total)What It Is
Sells systems that enable electronic device manufacturers to inspect, test, and measure PCBs, IC substrates, and packaged ICs to verify quality and pattern electronic circuitry.
Who Pays & How
Manufacturers of PCBs, IC substrates, and packaged ICs pay for these tools to ensure quality control and improve yield in their production processes.
Competition
Industry Resources
| Information Technology Resources |
| TechCrunch |
| Wired |
| CIO |
| MIT Technology Review |
| Gartner Insights |
| Ars Technica |
| Semiconductor Materials & Equipment Resources |
| SEMI |
| Semiconductor Digest |
| Semiconductor Today |
External Quote Links
| Y Finance | Barrons |
| TradingView | Morningstar |
| SeekingAlpha | ValueLine |
| Motley Fool | Robinhood |
| CNBC | Etrade |
| MarketWatch | Unusual Whales |
| YCharts | Perplexity Finance |
| FinViz |
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