KLA Corporation
KLACFinancial Analysis · Updated May 12, 2026 · Coverage 2026-Q2
Latest Q Revenue
$3.4B
Q3 FY26 (Mar 2026) · +11.5% YoY
TTM ROIC
42%
TTM (Sep 2025) · NOPAT / Invested Capital (implied; R&D expensed, not capitalized) · WACC ~11% · Moat spread +30pp
Financial Snapshot
ticker: KLAC step: 04 generated: 2026-05-12 source: quick-research
KLA Corporation (KLAC) — Financial Snapshot
Note: KLA fiscal year ends late June. "FY2025" = fiscal year ended June 30, 2025.
Income Statement Summary
| Metric | FY2024 | FY2025 | FY2026E | YoY |
|---|---|---|---|---|
| Revenue | $9.8B | $12.16B | $14B+ | +15%+ |
| Non-GAAP Gross Margin | 60.5% | 61.5% | 61-62% | +50bps |
| Non-GAAP Operating Margin | 42% | 43% | 43%+ | |
| GAAP Net Income | $2.7B | $4.06B | $4.8B+ | +18% |
| GAAP EPS | $19.84 | $30.37 | $34+ | +12-15% |
| FCF Margin | 33% | 35%+ | maintain | strong |
Quarterly Trajectory (FY2026)
| Quarter | Revenue | EPS |
|---|---|---|
| Q1 FY26 (Sep 2025) | $3.21B (+13% YoY) | $8.81 |
| Q2 FY26 (Dec 2025) | $3.297B (beat $3.25B est) | $8.85 (beat $8.80) |
| Q3 FY26 (Mar 2026) | record demand |
Segment Revenue
| Segment | % of Revenue |
|---|---|
| Semiconductor Process Control | ~90% (+13% YoY Q1 26) |
| Specialty Semiconductor Process | ~5% |
| PCB, Display, Component Inspection | ~5% |
| Services (within above) | ~25% (70%+ GM) |
Advanced Packaging + HBM
| Metric | Value |
|---|---|
| Advanced Packaging Revenue 2025 | $635M |
| Advanced Packaging Revenue 2026 target | $1B+ (nearly doubling) |
| HBM TSV inspection | Market leadership |
| Hybrid bonding metrology | Industry-standard |
2026 Outlook
| Item | Status |
|---|---|
| WFE 2026 forecast (KLAC raised) | $140B+ |
| WFE 2027 outlook | Greater than 2026 |
| Process Control Systems Growth | 20%+ FY26 |
| China Export Control 2026 Impact | -$300-350M revenue |
| Tariff Headwind | 100bps quarterly gross margin |
Market Share
| Category | KLA Share |
|---|---|
| Process Control (overall) | 50%+ |
| Optical Inspection | Dominant (decades-long) |
| E-Beam Inspection | Strong leader |
| Metrology | #1 |
| Mask Inspection | Dominant |
Cash Flow & Balance Sheet (FY2025)
| Metric | Value |
|---|---|
| Operating Cash Flow | ~$4.5B |
| Capital Expenditures | ~$0.5B |
| Free Cash Flow | ~$4B |
| Cash & Investments | ~$4B |
| Total Debt | ~$5B |
| Net Cash Position | ~($1B) modest net debt |
Key Ratios (approximate, May 2026)
- P/E (forward FY26): ~37x | EV/Sales: ~12x | FCF Yield: ~2.5%
- ROIC: ~50%+
- Gross Margin: 61%+ (industry-leading)
Growth Profile
Q2 FY26 record results + Q3 FY26 record demand. WFE 2026 raised to $140B+. Advanced packaging revenue nearly doubling to $1B (2026). Process control intensity scales with AI complexity. FY26 EPS estimate $34+ (+12-15%). Stock has been one of the best-performing semiconductor equipment plays.
Forward Estimates
- FY2026E Revenue: ~$14B (+15%)
- FY2026E GAAP EPS: ~$34
- FY2027E Revenue: ~$16-17B
- FY2027E EPS: ~$40+
- 3-year EPS CAGR scenarios: Bear/Base/Bull = +7%/+12%/+16%
Capital Return
- Dividend $7.16 annual = ~$1B paid
- 16+ consecutive years of dividend growth
- Buybacks: $4-5B annual run rate
- Total return: ~1.6% dividend + buyback + 12-16% EPS growth
Deeper Financial Analysis
The fundamental tier adds 9 additional research dimensions for $KLAC.
Revenue Breakdown
Segment revenue, geographic mix, product-line contribution margins, and cohort dynamics.
Financial Trends
Quarter-over-quarter momentum, leading indicators, and inflection point analysis.
Balance Sheet
Debt structure, liquidity runway, dilution risk, and working capital dynamics.
Capital Allocation
Buyback cadence, M&A appetite, dividend policy, and reinvestment priorities.
Returns on Capital (ROIC)
Multi-year ROIC vs. WACC, marginal returns on reinvestment, sales-to-invested-capital efficiency, and moat spread.
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