What Is Happening With KLA Stock?

KLAC: KLA logo
KLAC
KLA

KLA (KLAC) surged 85%, powered by a sharp revenue climb and soaring profit margins, as investors cheered strong quarterly beats and booming AI-driven demand. Yet, shadows linger from China sales worries—let’s unpack the key forces behind this striking move.

Below is an analytical breakdown of stock movement into key contributing metrics.

  11262024 11262025 Change
Stock Price ($) 626.1 1,159.1 85.1%
Change Contribution By LTM LTM
Total Revenues ($ Mil) 10,256.8 12,524.3 22.1%
Net Income Margin (%) 28.9% 33.8% 17.0%
P/E Multiple 28.3 36.0 27.3%
Shares Outstanding (Mil) 134.1 131.8 1.8%
Cumulative Contribution 85.1%

So what is happening here? The stock jumped 85%, fueled by a 22% revenue rise, 17% boost in net margin, and a 27% uplift in P/E multiple. Let’s dive into the key events driving these gains.

Here Is Why KLA Stock Moved

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  • Q1 FY26 Earnings Beat: KLA’s Q1 FY2026 results (Oct 29, 2025) exceeded revenue/EPS estimates, boosting stock 2.54%.
  • Q4 FY25 Strong Results: KLA Q4 FY2025 results (Jul 31, 2025) showed 24% YoY revenue growth, but stock declined.
  • AI/Adv Packaging Demand: Strong demand for AI infrastructure and advanced packaging drove KLA’s growth in 2025.
  • Semicon Equip Growth: Overall semiconductor equipment market growth and fab investments benefited KLA.
  • China Sales Concerns: Geopolitical tensions and weakness in China sales impacted KLA’s outlook and stock.

Our Current Assesment Of KLAC Stock

Opinion: We currently find KLAC stock fairly priced. Why so? Have a look at the full story. Read Buy or Sell KLAC Stock to see what drives our current opinion.

Risk: A good way to gauge risk with KLAC is to check its biggest dips during major market sell-offs. The stock fell about 73% in the Dot-Com crash and 75% in the Global Financial Crisis. Even in more recent events like the 2018 correction and Covid pandemic, it dropped over 30%. The inflation shock last year pushed it down around 40%. So, while KLAC has strong fundamentals, it’s clear that nothing is immune when markets really turn south.

KLAC stock may have seen strong gains recently, but investing in a single stock without detailed, thorough analysis can be risky. The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 — the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.