What Is Happening With KLA Stock?

KLAC: KLA logo
KLAC
KLA

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.