Ten-for-One Stock Split
Effective June 11, 2026, KLA effected a ten-for-one stock split; all share and per-share amounts have been retroactively adjusted.
Source: 10-K Item 7 MD&A
Computed from published fixed rules, not a model's judgement — though one input, the count of high-severity risks, comes from the AI analysis below.
Not investment advice and not a price target: it scores the quarter's fundamentals, not the stock. Full methodology →
AI Takeaway
KLA Corporation delivered robust growth in FY2026, with revenue and net income expanding as semiconductor customers increased investments in leading-edge process control tools for AI and high-performance computing. Management attributed the strong performance to soaring demand from foundry/logic and memory customers, particularly for advanced packaging and EUV-related inspection, alongside a 16% surge in recurring service revenue. However, China revenue remained flat at 29.8% of total sales, as tightening U.S. export controls limited shipments of advanced technology, while tariffs added cost pressures. Gross margin improved to 61.3%, reflecting volume leverage and disciplined cost management, even as product mix and higher installation costs weighed slightly.
Revenue
$13.58B
+11.71% YoY
EPS (Diluted)
$3.66
+20.39% YoY
Source: SEC XBRL
Kla (KLAC) reported FY2026 revenue of $13.58B, up 11.7% year over year. Operating cash flow was $4.14B, up 1.5% year over year.
Last 4 quarters: 3 beats
| Quarter | Actual EPS (USD) | Consensus (USD) | Result |
|---|---|---|---|
| Jun 2026This filing | 1.05 | 1.02 | Beat +3.3% |
| Mar 2026 | 0.94 | 0.93 | Beat +0.8% |
| Dec 2025 | 0.89 | 0.90 | Miss -1.4% |
| Sep 2025 | 0.88 | 0.88 | Beat +0.3% |
Reported EPS of $1.05 versus the $1.02 analyst consensus — a +3.3% beat for Jun 2026.
3 reported segments · SEC XBRL
Segment revenue totals $13.58B; with $264,000 of reconciling items (corporate, unallocated and eliminations) it ties to the $13.58B of consolidated revenue on the income statement.
Profit above is reported as gross profit, the measure KLAC itself discloses in this filing. Each company chooses its own measure here, so these margins are not comparable with another company's.
Compiled by AI from 10-K Item 7 of this filing
Effective June 11, 2026, KLA effected a ten-for-one stock split; all share and per-share amounts have been retroactively adjusted.
Source: 10-K Item 7 MD&A
Services revenue grew 16% year-over-year to represent 23% of total revenue, driven by an expanding installed base of tools and recurring maintenance contracts.
Source: 10-K Item 7 MD&A
The company repurchased $2.29 billion in shares and paid $1.06 billion in dividends; the board authorized an additional $7.00 billion in buybacks, leaving $9.74 billion remaining, and raised the quarterly dividend to $0.23 per share for the 17th consecutive annual increase.
Source: 10-K Item 7 MD&A
Revenue from China was $4.05 billion (29.8% of total), essentially unchanged from the prior year, as continued legacy-node investments were offset by export control restrictions on advanced technology sales.
Source: 10-K Item 7 MD&A
Gross margin rose 40 basis points to 61.3%, primarily due to higher revenue volume leverage, partially offset by unfavorable product mix and increased tariff-related costs.
Source: 10-K Item 7 MD&A
Compiled by AI from 10-K Item 1A of this filing · 2 high, 3 medium, 0 low
Evolving U.S. export controls, including the 2022/2023/2024/2025 BIS rules and the Affiliates Rule, restrict KLA's ability to sell advanced process control equipment to China-based semiconductor manufacturers, with China accounting for 30% of revenue; failure to obtain licenses could result in significant revenue losses and deposit refunds.
Source: 10-K Item 1A Risk Factors
New and proposed U.S. tariffs on imports, and retaliatory tariffs by other countries, have increased KLA's cost of revenues and created uncertainty in supply chain and customer planning; the February 2026 Supreme Court ruling on tariff authority adds further volatility.
Source: 10-K Item 1A Risk Factors
Taiwan Semiconductor Manufacturing Company Limited accounted for more than 10% of total revenue; a reduction in purchases by this or other large customers could materially harm results.
Source: 10-K Item 1A Risk Factors
KLA's global operations expose it to political instability, sanctions, and regulatory changes, including potential Chinese retaliation against U.S. semiconductor firms and sanctions related to Russia/Ukraine conflicts, which could disrupt supply chains and customer demand.
Source: 10-K Item 1A Risk Factors
The company faces IP infringement claims and indemnification obligations that could result in costly litigation, restrictions on product sales, or significant damages, potentially harming operating results.
Source: 10-K Item 1A Risk Factors
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue $B | 13.58 $B | 12.16 $B | +11.71% |
Cost of Revenue $B | 5.26 $B | 4.75 $B | +10.59% |
Net Income $B | 4.83 $B | 4.06 $B | +18.94% |
EPS (Basic) $ | 3.68 $ | 3.05 $ | +20.66% |
EPS (Diluted) $ | 3.66 $ | 3.04 $ | +20.39% |
R&D Expense $B | 1.53 $B | 1.36 $B | +12.63% |
SG&A Expense $B | 1.13 $B | 1.03 $B | +9.88% |
Answers draw on this SEC filing and the data on this page
KLAC reported strong financial performance in Q3 FY2026 with an 11.5% increase in revenue and a 10.3% rise in net income, driven by robust demand and effective cost management.
KLAC delivered strong Q2 FY2026 results with revenue up 7.2% YoY to $3.30B and net income surging 39.0% YoY to $1.15B, driven by robust margin expansion and disciplined cost control despite a modest rise in operating expenses.
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