KLAC - KLA Corporation
KLA Corp. (NASDAQ:KLAC) posted its fourth-quarter results after Tuesday's closing bell, just beating analyst estimates and issuing disappointing forward guidance with the report. Here's a look at the details.
KLA Corp forecast first-quarter revenue and profit above Wall Street estimates on Tuesday, betting that continued investment in AI infrastructure would sustain strong demand for its chipmaking tools.
For the quarter, total revenues were $3.66 billion, above the midpoint of the guidance range; GAAP diluted EPS was $1.04, at the upper end of the guidance range, and non-GAAP diluted EPS was $1.05, at the upper end of the guidance range; Cash flow from operating activities for the quarter and fiscal year was $906.4 million and $4.14 billion, respectively, and free cash flow was $817.1 million and $3.77 billion, respectively; Capital returns for the quarter and fiscal year were $876.3 million and $3.35 billion, respectively; and On June 11, 2026, after the market close, the company effected a ten-for-one stock split of its common stock and a proportional increase in the number of authorized shares of common stock. Share and per share information throughout this press release have been retroactively adjusted to reflect the stock split.
The semiconductor market, which has significantly outperformed the broader market in 2026 is seeing a pullback in July. The factors driving this rise include aggressive profit-taking, valuation concerns, and unwinding leveraged trades following a historic AI-fueled rally.
KLAC heads into fiscal Q4 earnings with AI-driven demand and advanced packaging growth, while higher DRAM costs pressure margins.
KLA Corporation (KLAC) remains a Buy as the AI CAPEX cycle persists, with sector demand and bookings showing no imminent slowdown. Peers' earnings and guidance indicate sustained process-control intensity at advanced nodes, supporting KLAC's revenue and margin outlook through 2027. KLAC's medium-term valuation is supported by robust gross margins (~61.75%) and mid-teens revenue growth, with downside risks tied to multiple compression and competitive dynamics.
Semiconductor exchange-traded funds have gained more than 25% this year. Intel Corporation's (INTC) second-quarter earnings report after today's close could test whether that rally continues.
Besides Wall Street's top-and-bottom-line estimates for KLA (KLAC), review projections for some of its key metrics to gain a deeper understanding of how the company might have fared during the quarter ended June 2026.
In the latest trading session, KLA (KLAC) closed at $214.69, marking a -1.32% move from the previous day.
Texas Instruments Inc (NASDAQ:TXN) was last seen up 3.5% at $294.04, extending a bounce off familiar support at the $280 level.
KLA (KLAC) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.
Semiconductor stocks have officially entered a bear market after the PHLX Semiconductor Index (SOX) plunged more than 20% from its June 2026 record high, raising concerns that the AI-driven rally may be losing momentum.
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Matt Dmytryszyn talks about what ASML's (ASML) earnings beat means for the greater AI chip trade. He says ASML Holding intends to raise prices for chipmaking equipment, which can impact companies like Applied Materials (AMAT), Lam Research (LRCX), and KLA Corp. (KLAC).
KLAC has confirmed multiple bearish technical signals, including a pennant breakdown and weakening momentum, suggesting the correction may continue toward lower weekly support levels.
The latest trading day saw KLA (KLAC) settling at $224.5, representing a -2.55% change from its previous close.
Applied Materials (NASDAQ: AMAT | AMAT Price Prediction) and KLA (NASDAQ: KLAC) both closed strong quarters tied to AI infrastructure buildout.
Shares of ON Semiconductor Corp (NASDAQ:ON) are trading 1% lower at $92.75 this afternoon, extending its stay below the $100 threshold.
I rate KLA Corporation a Strong Buy with a $313 price target, implying 40% upside from $222. KLAC's 58% share in semiconductor process control gives it a dominant position in a part of semiconductor manufacturing that becomes more valuable as chips become harder to produce. My model estimates these drivers can increase revenue from about $14 billion in 2026 to roughly $18.3 billion by 2028 and lift split-adjusted EPS to about $5.3.
KLA (KLAC) closed the most recent trading day at $222.25, moving 4% from the previous trading session.