# KLA Corporation (KLAC) — Financial Analysis

**Exchange:** NASDAQ  
**Coverage as of:** 2026-Q2  
**Updated:** 2026-05-12  
**Tier:** Free primer (step 2 of 19)  
**Sibling pages:** /stocks/KLAC/thesis · /stocks/KLAC/memo

## 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 ($1.00) adds 8 dimensions not included here:

- Revenue Breakdown — segment revenue, geographic mix, product-line margins
- Financial Trends — QoQ momentum, leading indicators, inflection points
- Balance Sheet — debt structure, dilution risk, working capital dynamics
- Capital Allocation — ROIC, buyback cadence, reinvestment efficiency
- Earnings Analysis — beats/misses, guidance vs actuals, transcript highlights
- Competitive Positioning — market share, pricing power, peer benchmarks
- Industry Context — TAM, sector tailwinds/headwinds, regulatory backdrop

**API endpoint:** GET /api/v1/research/KLAC/fundamental

## Navigation

- Overview: /stocks/KLAC
- Financials (this page): /stocks/KLAC/financials
- Thesis: /stocks/KLAC/thesis
- Investment Memo: /stocks/KLAC/memo
- Coverage universe: /stocks