KLA (NASDAQ:KLAC) Releases Q2 2027 Earnings Guidance

KLA (NASDAQ:KLAC) updated its second quarter 2027 earnings guidance on Friday morning. The company provided EPS guidance of 1.330-1.550 for the period, compared to the consensus earnings per share estimate of 1.360. The company issued revenue guidance of $4.5 billion-$4.9 billion, compared to the consensus revenue estimate of $4.5 billion.

KLA Stock Performance

Shares of KLAC traded down $7.93 on Friday, reaching $159.50. The company’s stock had a trading volume of 5,541,460 shares, compared to its average volume of 11,131,433. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.03. The stock has a market capitalization of $208.15 billion, a P/E ratio of 39.88, a PEG ratio of 1.41 and a beta of 1.45. The stock’s 50 day simple moving average is $179.18 and its two-hundred day simple moving average is $181.70. KLA has a 12-month low of $107.20 and a 12-month high of $307.37.

KLA (NASDAQ:KLAC) last announced its earnings results on Wednesday, October 28th. The semiconductor company reported $1.22 EPS for the quarter, beating analysts’ consensus estimates of $1.18 by $0.04. KLA had a net margin of 36.25% and a return on equity of 91.73%. The business had revenue of $4.14 billion during the quarter, compared to analysts’ expectations of $4.04 billion. During the same period in the prior year, the company earned $8.47 earnings per share. The firm’s revenue was up 28.9% on a year-over-year basis. Research analysts forecast that KLA will post 5.43 earnings per share for the current fiscal year.

KLA Increases Dividend

The business also recently announced a quarterly dividend, which was paid on Tuesday, September 1st. Investors of record on Monday, August 17th were given a dividend of $0.23 per share. This represents a $0.92 annualized dividend and a yield of 0.6%. This is a boost from KLA’s previous quarterly dividend of $0.23. The ex-dividend date was Monday, August 17th. KLA’s dividend payout ratio (DPR) is presently 25.07%.

Wall Street Analyst Weigh In

KLAC has been the subject of several recent research reports. Piper Sandler set a $425.00 price target on KLA in a report on Thursday. Morgan Stanley restated an “overweight” rating and issued a $220.00 price objective on shares of KLA in a research report on Thursday. Royal Bank Of Canada reissued a “sector perform” rating and issued a $180.00 price target (up from $170.00) on shares of KLA in a report on Wednesday, July 29th. Jefferies Financial Group reissued a “buy” rating and set a $210.00 price objective (up from $200.00) on shares of KLA in a research note on Wednesday, July 29th. Finally, Stifel Nicolaus set a $230.00 target price on shares of KLA and gave the company a “buy” rating in a research note on Thursday. Nineteen analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the company’s stock. According to MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $220.35.

Insider Buying and Selling at KLA

In related news, CEO Richard P. Wallace sold 72,019 shares of the firm’s stock in a transaction dated Tuesday, September 15th. The stock was sold at an average price of $171.88, for a total transaction of $12,378,625.72. Following the sale, the chief executive officer owned 706,925 shares of the company’s stock, valued at $121,506,269. This trade represents a 9.25% decrease in their ownership of the stock. The sale was disclosed in a document filed with the Securities & Exchange Commission, which is available through this link. Also, CAO Virendra Kirloskar sold 4,504 shares of the stock in a transaction dated Wednesday, August 5th. The shares were sold at an average price of $195.50, for a total transaction of $880,532.00. Following the sale, the chief accounting officer directly owned 7,972 shares of the company’s stock, valued at approximately $1,558,526. The trade was a 36.10% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 243,339 shares of company stock worth $46,903,454 over the last quarter. 79.39% of the stock is currently owned by company insiders.

Key Stories Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Strong fiscal Q1 results: KLA reported $4.14 billion in revenue and non-GAAP EPS of $1.22, exceeding consensus estimates of $4.04 billion and $1.18, respectively. Revenue increased 28.9% year over year, supported by demand for wafer-inspection and process-control equipment. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Above-consensus outlook: KLA guided fiscal second-quarter revenue to $4.5 billion-$4.9 billion, with a midpoint of $4.7 billion versus the $4.5 billion consensus estimate. EPS guidance of $1.33-$1.55 brackets expectations and reflects continued AI-related semiconductor investment. KLA Expects Second-Quarter Revenue Range
• Positive Sentiment: Longer-term AI opportunity: Increasing chip complexity and advanced packaging requirements are expected to drive demand for KLA’s inspection and measurement systems. The company also anticipates a wafer-fabrication-equipment market exceeding $200 billion in 2027. Can Advanced Packaging Demand Drive KLA’s Next Growth Phase?
• Positive Sentiment: Some analysts remain bullish: Argus reaffirmed a Buy rating with a $225 price target, while JPMorgan raised its target to $240 and maintained an Overweight rating. Argus KLA Recommendations
• Neutral Sentiment: Mixed Wall Street response: Citigroup retained a Buy rating despite lowering its target to $275. Several firms—including Wells Fargo, Needham, Evercore ISI, Cantor Fitzgerald, Susquehanna and UBS—also reduced targets, suggesting analysts see strong fundamentals but less near-term upside or elevated execution and valuation risks.
• Negative Sentiment: Profit-taking and estimate-reset pressure: The stock’s decline indicates investors may be selling the news after the earnings rally. Target cuts—including Wells Fargo’s reduction from $245 to $210 and UBS’s reduction from $190 to $180—are likely weighing on sentiment, even though most revised targets remain above the current share price.

About KLA

KLA Corporation (NASDAQ: KLAC) develops process control, inspection and yield management solutions for the semiconductor and other advanced manufacturing industries. Its technologies help manufacturers identify defects, measure critical dimensions and monitor production processes to improve quality, reliability and manufacturing efficiency.

The company’s product portfolio includes wafer and reticle inspection systems, metrology and measurement tools, defect review and classification systems, and software for analyzing manufacturing data.