Stock · KLAC · Technology

KLA Corporation

United States · Large Cap · listed since 1980 · Revenue 12 mo. $13.6B

Price as of 11/06/2026

StockScorer score
5.5
of 10 6 of 11 points Medium Match To the score
Price
$138.49
1 Y +5.2%
Market cap
$186.1B
Phase
Payout
core business profitable, at least half of operating cash flow goes to shareholders
Revenue +9.0% a year (3 years)EBIT margin 41.7%Payout 82.5% of operating cash flow

Summary

KLA Corporation is around the middle of the Technology sector overall

48.5 of 100

Mean of the six area values. Each area value is the mean of the stock's ranks among the companies in its sector. 50 is the middle of the sector, not a share of companies beaten.

Analysis

What the price requires

The price requires 20.8% FCF growth a year, more than achieved over the last 5 and 10 years.

If free cash flow stays at €3.4B (2026), it supports €37.6B. The remaining €129.4B of the market value assume it grows 20.8% a year for 10 years and not at all afterwards.

Required FCF growth per year

20.8%

no growth afterwards

Market value breakdown€167B market value, price as of 11/06/2026

€37.6B without growth
€129.4B priced-in growth
  • 5 yrs achieved 8.4%
  • 10 yrs achieved 17.4%
  • priced in 20.8%

Valuation against its own history

Price to operating cash flow 44.1×, above its usual range.

Middle half of 20 quarters: 18.1× to 31.3×, median 23.4×.

Measures only against its own past, not against what the company is worth. Price as of 11/06/2026.

3 signs support the expectation, 1 speaks against it.

What supports it

with respect to the priced-in expectation

  • High, stable gross margin median 60.4%, range 6.3 pp (10 years)
  • High return on capital every year ROCE at least 19.2% (10 years)
  • Low capital needs capex median 2.8% of revenue (10 years)

What speaks against it

with respect to the priced-in expectation

  • Expectation above the company's own record priced in 20.8%, achieved at most 17.4%

AI summary of the 2026 annual report

The business of KLA Corporation according to its report

A language model selected and condensed statements from the report. Each statement carries a verbatim quote. The selection is not complete and shows the state of the report. It gives no rating and does not feed into the score.

Form 10-K, fiscal year ended 06/30/2026, filed 08/06/2026. Open the report at the SEC

Revenue by segment, fiscal year ended 06/30/2026

SegmentShareRevenue
Semiconductor Process Control
90.2%
$12.2B
PCB and Component Inspection
5.5%
$750.4M
Specialty Semiconductor Process
4.3%
$584.1M

From the report's structured data (XBRL), not from the language model. The sum can differ slightly from group revenue.

Business model according to the report

  • Services account for approximately 23% of total revenue in fiscal 2026. They provide maintenance and other services to keep customers' tools running and productive.

    Quote
    Our services business, which accounted for approximately 23% of our total revenues in fiscal 2026, provides maintenance and other services to maximize uptime, productivity and tool life for our customers.
  • The Specialty Semiconductor Process segment develops and sells vacuum deposition and etching tools.

    Quote
    Within the Specialty Semiconductor Process segment, we develop and sell advanced vacuum deposition and etching process tools
  • The PCB and Component Inspection segment helps electronics makers inspect, test and measure PCBs, IC substrates and packaged ICs to check their quality.

    Quote
    Within the PCB and Component Inspection segment, we enable electronic device manufacturers to inspect, test and measure PCBs, IC substrates and packaged ICs to verify their quality

Customers according to the report

  • Among the largest customers are semiconductor, semiconductor-related and electronic device manufacturers in Asia, the U.S. and Europe.

    Quote
    We count among our largest customers the leading semiconductor, semiconductor-related and electronic device manufacturers in Asia, the U.S. and Europe.
  • Approximately 87% of total revenue in the fiscal year ended June 30, 2026 came from international sales.

    Quote
    International revenues accounted for approximately 87% of our total revenues in the fiscal year ended June 30, 2026
  • The business depends on capital spending by semiconductor and electronic device makers, which follows current and expected demand for chips and the products that use them.

    Quote
    Our business depends upon the capital expenditures of semiconductor, semiconductor-related and electronic device manufacturers, which are driven by current and anticipated market demand for ICs and the products that use them.

Competition according to the report

  • In each product market the company has many competitors, including Applied Materials, ASML, Hitachi High-Tech, Lasertec and Onto Innovation. Some of them could have greater financial, research, engineering, manufacturing and marketing resources.

    Quote
    In each of our product markets, we have many competitors, including companies such as Applied Materials, Inc., ASML Holding N.V., Hitachi High-Tech Corporation, Lasertec, Inc. and Onto Innovation, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have.
  • The market for process control and yield management solutions is very competitive. Important factors include system performance, ease of use, reliability, technical service and support, and overall cost of ownership.

    Quote
    The worldwide market for technologically advanced process control, process-enabling and yield management solutions used by semiconductor and electronics manufacturers is highly competitive, with important competitive factors including system performance, ease of use, reliability, technical service and support, and overall cost of ownership.
  • The company expects competitors to keep improving their current products and to launch new products with better pricing and performance.

    Quote
    We expect our competitors to continue to improve the design and performance of their current products and to introduce new products with improved pricing and performance characteristics.

Risks according to the report

  • Revenue from customers in China was 30% in fiscal 2026, 33% in 2025 and 43% in 2024.

    Quote
    Our revenue from sales of products and provision of services to customers in China was 30%, 33% and 43% for fiscal years 2026, 2025 and 2024, respectively.
  • Export controls and sanctions issued by Commerce and other authorities may limit sales of certain products and services to certain customers, especially in China.

    Quote
    Export controls, sanctions and other trade-related regulations issued by Commerce and other governmental authorities may limit our ability to sell certain products or provide certain services to certain customers, particularly in China
  • The customer base, especially in semiconductors, has become highly concentrated through consolidation, acquisitions and closures. A relatively limited number of manufacturers account for a substantial portion of sales.

    Quote
    Our customer base, particularly in the semiconductor industry, historically has been highly concentrated due to corporate consolidation, acquisitions and business closures. In this environment, orders from a relatively limited number of manufacturers have accounted for, and are expected to continue to account for, a substantial portion of our sales.
  • A few large suppliers have stopped making certain DRAM chips used in a number of the company's products. The resulting shortage has caused a large rise in the prices of these chips.

    Quote
    Recently, a few large suppliers have discontinued manufacturing certain DRAM chips that are incorporated in a number of our products, and the resulting shortage has caused a dramatic increase in the prices to acquire these chips.

Since the last quarter

Q1 → Q2 2026

Mostly worse than the previous quarter: 3 of 3 changes for the worse.

  • FCF, 12 mo.$4.0B → $3.8B−6.2%worse
  • FCF margin30.7% → 27.7%−2.9 ppworse
  • Return on equity80.1% → 76.1%−4.0 ppworse

5 more unchanged: Revenue, 12 mo., Gross margin, EBIT margin, Net debt, Shares outstanding

Derivation

How the sector comparison is derived

Each area value is the average of its metrics' ranks within the sector (0 to 100, 50 is the middle). For metrics where lower is better, the rank is mirrored. The overall value is the average of the area values.

Price as of 11/06/2026.

Profitability80.6above the middleEarns more than the sector: Return on equity 76.08%, sector 14.60%.
MetricStockSector medianPosition in sector
Return on equity76.08%14.60%Rank 96
Return on capital (Greenblatt)59.86%29.77%Rank 70
EBIT margin41.69%17.40%Rank 92
FCF margin27.74%18.54%Rank 78
Gross margin61.30%48.47%Rank 66
Growth56.1around the middleGrows about as fast as the sector.
MetricStockSector medianPosition in sector
Revenue growth, 1 year11.71%12.70%Rank 45
Earnings growth, 3 years per year14.87%9.54%Rank 59
Earnings growth, 5 years per year22.32%14.07%Rank 73
Sustainable growth (ROE × retained earnings)2.77%2.87%Rank 48
Valuation34.9below the middleValued higher than the sector: EV/sales 13.80, sector 5.18.
MetricStockSector medianPosition in sector
Earnings yield2.64%2.64%Rank 50
FCF yield2.02%3.06%Rank 35
EV/saleslower is better13.805.18Rank 18
EV/EBITlower is better33.1026.24Rank 36
Momentum29.9below the middleShare price doing worse than the sector: Distance from 52-week high −54.10%, sector −33.23%.
MetricStockSector medianPosition in sector
Share price, 1 year5.19%−0.59%Rank 59
Share price, 6 months−25.43%−4.46%Rank 26
Share price, 3 months−24.96%−5.84%Rank 21
Distance from 52-week high−54.10%−33.23%Rank 15
Quality60.8above the middleQuality above the sector: Price reaction to results, market-adjusted 5.50%, sector −1.57%.
MetricStockSector medianPosition in sector
Accruals (Sloan)lower is better11.04%1.65%Rank 19
Change in share countlower is better−1.34%−0.17%Rank 71
Dividend streak in years108Rank 72
Price reaction to results, market-adjusted5.50%−1.57%Rank 81
Balance sheet & risk28.8below the middleMore risk than the sector: Debt to equity 0.97, sector 0.33.
MetricStockSector medianPosition in sector
Equity ratio35.37%53.98%Rank 24
Net debt/EBITDAlower is better0.22−0.20Rank 41
Debt to equitylower is better0.970.33Rank 17
Volatility, 1 yearlower is better61.26%50.37%Rank 33

Ten years in figures

Revenue from $3.5B (2017) to $13.6B (2026), 16.3% a year.

Fiscal years, amounts in USD
YearRevenue, $BEBIT marginFCF, $BSharesNet debt
20173.536.7%1.01.57B$1.8B
20184.038.1%1.21.57B−$642.9M
20194.630.4%1.01.57B$2.4B
20205.830.3%1.61.58B$2.3B
20216.936.0%2.01.55B$2.1B
20229.239.7%3.01.52B$5.2B
202310.538.1%3.31.40B$4.1B
20249.837.1%3.01.36B$4.8B
202512.241.3%3.71.34B$4.0B
202613.641.7%3.81.32B$4.5B
5.5 / 10Medium MatchStockScorer score6 of 11 points

4 of 7 StockScorer Score rules met · How the score is built

KLA Corporation mainly meets criteria in the Profitability category. Result from 18 strategies checked.

This stock · Profitability: 100%This stock · Growth: 50%This stock · Valuation: 0%This stock · Momentum: 0%Median of all stocks · Profitability: 33%Median of all stocks · Growth: 0%Median of all stocks · Valuation: 0%Median of all stocks · Momentum: 0%50%100%ProfitabilityGrowthValuationMomentumThis stockMedian of all stocks

How KLA Corporation's score is built

KLA Corporation is rated here with the StockScorer Score strategy, the flagship rule set. It compares return and cash-flow metrics with the median of the company's own sector and checks growth and price trend.

4 of 7 rules met

6 of 11 points

  1. Free cash flow yield above the sector mediannot met0 of 2 points
  2. Return on capital (Greenblatt ROC) above the sector medianmet2 of 2 points
  3. Return on equity above the sector medianmet1 of 1 point
  4. Free cash flow margin above the sector medianmet2 of 2 points
  5. Revenue growth above 15%not met0 of 2 points
  6. 3-year earnings growth above 12% p.a.met1 of 1 point
  7. 12-month share price more than 20 percentage points ahead of the marketnot met0 of 1 point
  8. Exclusion: financial and real estate stocksdoes not apply

Detail data

How does KLA Corporation stock perform across 18 strategies?

Excerpt from 18 strategies checked. The full evaluation is visible after a free sign-up.

12 more strategies locked

With a free account, you can see the match across all strategies checked in one complete overview.

  • Altman Z-Score: Stress Test
  • Earnings Quality: Accrual Check (Sloan)
  • Magic Formula: Value + Quality
  • Dividend Aristocrats & Continuity
  • Levermann Strategy (13 Criteria)
  • High-Growth / Rule of 40
  • Undervalued Stocks: Multi-Factor Check
  • Acquirer's Multiple: EV/EBIT Deep Value
  • Defensive: Low Volatility
  • PEG Strategy (inspired by Peter Lynch)
  • Trending Value: Value + Momentum
  • Growth Momentum (CAN SLIM principle)

KLA Corporation key metrics: P/E, P/B and equity ratio

Selected fundamental metrics for KLA Corporation.

MetricStockSector
P/E ratio37.835.1
P/B ratio28.85.5
Return on equity (ROE)76.1%14.6%
Equity ratio35.4%54.0%
Debt-to-equity (D/E)0.970.33
Dividend yield0.6%0.9%

Similar stocks in Technology

How comparable stocks in the same sector score in the StockScorer model.

SymbolCompanyRating
KLACKLA Corporationthis page
LRCXLam Research CorpHigh7.3
AMATApplied Materials IncMedium5.5
6857.TAdvantest Corp.locked
8035.TTokyo Electron Limitedlocked
002371.SZNAURA Technology Group Co Ltdlocked

Frequently asked questions about KLA Corporation stock

How does KLA Corporation stock (KLAC) score in the StockScorer model?
KLA Corporation stock reaches a StockScorer score of 5.5 out of 10, which is a medium match with the rule-based strategies. 4 out of 7 flagship profile rules are met.
What is KLA Corporation's P/E ratio?
KLA Corporation's P/E ratio is 37.8. The Technology sector median is 35.1.
What sector is KLA Corporation in?
KLA Corporation is assigned to the Technology sector. Its rank within the sector is 48.5 out of 100: 100 means the stock leads its peer group of large and mid-cap sector stocks in every measured area.

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