What Is Happening With KLA Stock?
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.