KLA (NASDAQ:KLAC) Announces Earnings Results, Beats Expectations By $8.48 EPS

KLA (NASDAQ:KLAC) issued its quarterly earnings results on Wednesday, April 29th. The semiconductor company reported $9.40 EPS for the quarter, beating the consensus estimate of $0.92 by $8.48, Zacks reports. KLA had a net margin of 35.66% and a return on equity of 91.89%. The company had revenue of $3.42 billion for the quarter, compared to the consensus estimate of $3.37 billion. During the same period in the prior year, the firm posted $0.84 EPS. The firm’s revenue was up 11.5% compared to the same quarter last year. KLA updated its Q4 2026 guidance to 8.870-10.870 EPS.

Here are the key takeaways from KLA’s conference call:

• KLA delivered strong results with $3.415 billion revenue (up 4% sequential, 11% YoY), non‑GAAP EPS of $9.40, $622M quarterly free cash flow and $4B TTM FCF, and announced a 17th dividend increase plus an incremental $7B share repurchase authorization.
• The company reported accelerating momentum in advanced packaging—claiming the #1 Process Control position for Advanced Wafer‑Level Packaging—and raised expected packaging process control revenue from ~$635M in 2025 to ~$1B in 2026.
• KLA warned that elevated DRAM pricing for its image‑processing components will create about a 100 basis‑point gross‑margin headwind through at least calendar 2026, keeping gross margin guidance around ~62% ±50 bps.
• Management described “unprecedented” customer urgency, growing backlogs and extended lead times that constrain near‑term supply but said it is scaling capacity, hiring installation/service teams, and sees stronger visibility into 2027 while maintaining 2026 guidance.

KLA Stock Performance

NASDAQ:KLAC traded up $13.25 during midday trading on Friday, reaching $254.41. The stock had a trading volume of 6,417,926 shares, compared to its average volume of 10,794,013. The company has a quick ratio of 2.11, a current ratio of 3.03 and a debt-to-equity ratio of 1.01. The firm has a fifty day simple moving average of $1,843.23 and a two-hundred day simple moving average of $1,547.29. The stock has a market cap of $33.23 billion, a P/E ratio of 7.20, a P/E/G ratio of 3.16 and a beta of 1.50. KLA has a 12-month low of $83.22 and a 12-month high of $253.99.

KLA Cuts Dividend

The company also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Shareholders of record on Monday, May 18th were paid a $0.23 dividend. The ex-dividend date was Monday, May 18th. This represents a $0.92 dividend on an annualized basis and a yield of 0.4%. KLA’s payout ratio is currently 26.04%.

Analyst Upgrades and Downgrades

KLAC has been the topic of a number of recent research reports. Stifel Nicolaus increased their price objective on shares of KLA from $170.00 to $191.00 and gave the company a “buy” rating in a research note on Thursday, April 30th. Citigroup increased their price objective on shares of KLA from $180.00 to $206.40 and gave the company a “buy” rating in a research report on Friday, May 1st. UBS Group reaffirmed a “neutral” rating and issued a $218.00 price objective (up from $177.00) on shares of KLA in a report on Tuesday. Argus raised their price target on shares of KLA from $175.00 to $195.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Finally, Wells Fargo & Company upped their price target on shares of KLA from $190.00 to $210.00 and gave the stock an “overweight” rating in a research report on Thursday, April 30th. Twenty analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. Based on data from MarketBeat.com, the company has a consensus rating of “Moderate Buy” and a consensus price target of $342.44.

Key Headlines Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Analysts say the AI investment boom is improving the outlook for semiconductor equipment makers, supporting demand for KLA’s wafer-fabrication process-control tools. Applied Materials, KLA stocks gain as AI boom lifts chip equipment outlook
• Positive Sentiment: Barclays reiterated an Overweight rating on KLA, and recent price-target increases from several firms suggest Wall Street remains constructive after the company’s strong earnings and AI-focused outlook. Applied Materials and KLA Are Surging. Why You Should Buy the Stocks, Says This Analyst.
• Neutral Sentiment: Investors are also watching KLA’s upcoming stock split, which may be increasing attention on the shares but does not change the business fundamentals. Dear KLA Stock Fans, Mark Your Calendars for June 12
• Negative Sentiment: CEO Richard P. Wallace sold 45,120 shares in a disclosed insider transaction, which can weigh on sentiment even though he still owns a large position. Richard P. Wallace insider sale filing

KLA declared that its board has initiated a share buyback program on Thursday, March 12th that authorizes the company to buyback $7.00 billion in outstanding shares. This buyback authorization authorizes the semiconductor company to buy up to 3.6% of its shares through open market purchases. Shares buyback programs are typically an indication that the company’s leadership believes its stock is undervalued.

Insider Buying and Selling at KLA

In related news, CEO Richard P. Wallace sold 4,512 shares of the stock in a transaction dated Thursday, June 11th. The stock was sold at an average price of $2,213.37, for a total transaction of $9,986,725.44. Following the transaction, the chief executive officer directly owned 71,383 shares in the company, valued at approximately $157,996,990.71. This represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which can be accessed through this hyperlink. In the last 90 days, insiders sold 94,752 shares of company stock valued at $28,067,979. Corporate insiders own 91.48% of the company’s stock.

Institutional Trading of KLA

Large investors have recently added to or reduced their stakes in the stock. Pinebridge Investments LLC bought a new stake in KLA in the fourth quarter worth about $32,812,000. Russell Investments Group Ltd. raised its position in KLA by 31.4% during the fourth quarter. Russell Investments Group Ltd. now owns 91,413 shares of the semiconductor company’s stock valued at $111,910,000 after buying an additional 21,850 shares during the period. Captrust Financial Advisors grew its position in KLA by 237.8% during the fourth quarter. Captrust Financial Advisors now owns 17,055 shares of the semiconductor company’s stock valued at $20,723,000 after purchasing an additional 12,006 shares in the last quarter. Longbow Finance SA purchased a new position in shares of KLA during the 4th quarter valued at $6,105,000. Finally, Horizon Investments LLC grew its stake in KLA by 30.1% in the third quarter. Horizon Investments LLC now owns 10,981 shares of the semiconductor company’s stock valued at $11,844,000 after purchasing an additional 2,540 shares in the last quarter. 86.65% of the stock is currently owned by institutional investors and hedge funds.

KLA Company Profile

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.