Should You Wait Before Buying KLA Stock?
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KLA (KLAC) stock has lost about half its value since its peak at the end of June. That decline includes a 26.0% drop in the past month, a period when the S&P 500 slipped 2.3%. The slide continued through an October 28 report in which management called the quarter’s revenue a record. The shares jumped 5.5% the day after that report, then gave the gain back. Over twelve months the shares are still up 27.3%, against 11.5% for the index. Has the price come down far enough to match what KLA earns?
How Expensive Is KLA Stock Now?
The shares are not as cheap as the fall suggests. At the November 2 close, KLA traded at 38.0 times its earnings over the last twelve months. While that represents a drop from a peak of 81.6 times at the end of June, the multiple stood at 33.5 times in September 2025, and at 20.2 times in September 2023.
That higher multiple comes with higher margins. KLA recorded a 42.6% operating margin over the last twelve months, up from 37.2% three years earlier. This marks its highest operating margin at any quarter end since fiscal 2017. The multiple remains above its 2025 and 2023 levels, and so does the margin.
A single segment accounts for most of that business. The Semiconductor Process Control segment brought in $12.2 billion of KLA’s $13.6 billion revenue in fiscal 2026. Management tied the strength of the latest quarter to leading-edge foundry logic related to AI infrastructure investments.
KLA Has Guided For Higher December-Quarter Revenue
After reporting $4.14 billion for the September quarter, KLA guided revenue for the December quarter, its fiscal Q2 2027, to $4.7 billion plus or minus $200 million. Analysts expect $4.81 billion for that quarter. That estimate sits inside the range but above its midpoint, so analysts are looking for a result in the upper half of KLA’s own guide.
Management pointed to customer demand behind that guide, noting that customers are laying out multiyear investment cycles. The company expects the wafer equipment market to exceed $200 billion in calendar 2027. Yet management also said KLA is still behind in supply, and that persistently high memory costs are offsetting the operating leverage it expects as the business grows.
How Has KLA Stock Moved After Earnings Reports?
The stock has mostly moved down. Over the two trading days after each of its six most recent reports, KLA stock fell five times and rose once. The largest fall was a 16.3% drop following the January 2026 report, and the single rise was a 4.2% gain after the July 2025 report. Even the October 28 report, which beat the midpoint of the guidance ranges, was followed by a 0.5% dip.
KLA is expected to report its December quarter in January 2027. During past market shocks, KLA stock has usually fallen further than the index, dropping by 39% in the 2022 inflation shock and Fed tightening against 24% for the S&P 500.
When the company reports in January 2027, KLA’s December-quarter revenue, against its guide of $4.5 billion to $4.9 billion, is the number to watch. Until then, waiting looks like the more careful choice: analysts already expect a result above the guide’s midpoint, so the bar for that report is high.
Beyond KLAC: A Systematic Way To Invest
Before you decide on KLAC, consider a better choice. Since its September 2020 launch, the Trefis High Quality (HQ) Portfolio has returned 105%, ahead of a benchmark that combines the S&P 500, S&P MidCap and Russell 2000, without betting on one stock.
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