Why KLA Stock Jumped 90%?
Over the course of one year, KLA (KLAC)’s stock nearly doubled, fueled by a potent blend of soaring revenues, expanding margins, and a surging P/E multiple. Behind this surge lies a story of AI-driven demand, standout earnings, and vibrant market trends—an electrifying blend that kept investors buzzing.
Below is an analytical breakdown of stock movement into key contributing metrics.
| 1302025 | 1302026 | Change | |
|---|---|---|---|
| Stock Price ($) | 736.1 | 1,427.9 | 94.0% |
| Change Contribution By: | |||
| Total Revenues ($ Mil) | 10,256.8 | 12,744.6 | 24.3% |
| Net Income Margin (%) | 28.9% | 35.8% | 23.7% |
| P/E Multiple | 33.3 | 41.1 | 23.6% |
| Shares Outstanding (Mil) | 134.1 | 131.3 | 2.2% |
| Cumulative Contribution | 94.0% |
So what is happening here? The stock surged 94%, driven evenly by a 24% rise in revenue, a 24% boost in net margin, and a 24% jump in its P/E multiple. Let’s dive into the events behind these gains.
Here Is Why KLA Stock Moved
- Q2 2026 Earnings Beat: KLA beat EPS and revenue forecasts for Q2 2026, leading to a stock price increase.
- AI-Driven Demand: Strong AI demand for logic, memory, and advanced packaging boosted KLA’s revenue growth.
- Strong FY25 Performance: KLA reported record full-year 2025 revenue and EPS growth, showing solid performance.
- Positive Analyst Ratings: Analysts maintained “Buy” ratings and increased price targets for KLAC shares.
- Semiconductor Market Growth: The global semiconductor market is projected for robust growth through 2026.
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.