What Is Happening With KLA Stock?
KLA (KLAC)’s stock skyrocketed over 100%, fueled by strong earnings beats and a booming AI-driven industry outlook. With revenue climbing and investor confidence pushing multiples higher, the gains tell a story of resilience—even amid earnings swings. Let’s dive into the key moments behind this surge.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 1142025 | 1142026 | Change | |
|---|---|---|---|
| Stock Price ($) | 695.3 | 1,434.5 | 106.3% |
| Change Contribution By | LTM | LTM | |
| Total Revenues ($ Mil) | 10,256.8 | 12,524.3 | 22.1% |
| Net Income Margin (%) | 28.9% | 33.8% | 17.0% |
| P/E Multiple | 31.4 | 44.6 | 41.9% |
| Shares Outstanding (Mil) | 134.1 | 131.8 | 1.8% |
| Cumulative Contribution | 106.2% |
So what is happening here? The stock surged 106%, driven by a 22% rise in revenue, a 17% boost in net margin, and a 42% jump in P/E multiple. Let’s explore the key events behind these shifts.
Here Is Why KLA Stock Moved
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- Q2 FY25 Earnings Beat: Jan 30, 2025: Q2 FY25 results above guidance midpoint despite export controls.
- Q3 FY25 & Capital Return: Apr 30, 2025: Q3 FY25 beat estimates, dividend raised, $5B share repurchase.
- Q4 FY25 Earnings Drop: Jul 31, 2025: Beat Q4 FY25 forecasts, but stock declined significantly post-earnings.
- Q1 FY26 Earnings Beat: Oct 30, 2025: Q1 FY26 non-GAAP EPS & revenue beat estimates; 13% Y/Y revenue growth.
- Industry & AI Growth: Robust semiconductor demand in 2025 for AI/data centers; analysts upgraded KLAC.
Our Current Assesment Of KLAC Stock
Opinion: We currently find KLAC stock relatively expensive. 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.