24/7 Wall Street·1d ago
A $17 Billion Hedge Fund Is Handing Back Cash After Its Worst Month Since 2020When a hedge fund cuts its stock pickers on the same day AI chip shares crater, it's tempting to read a verdict on the businesses.
KLA's revenue re-accelerated to 28.9% year-over-year growth in 2027Q1, with gross margins holding in a tight 60.3% to 62.0% band across the ten quarters reviewed, which suggests durable pricing power in its niche process-control market.
Price trend, volume and key moving averages
Start with the evidence for owning the stock and the risks that can break the thesis.
Revenue grew 28.9% year-over-year to roughly $4.1B in 2027Q1 with a 61.9% gross margin and 45.0% operating margin, though the divergence between operating and net margins in 2025Q2 warrants further investigation.
KLA holds a near-monopoly in semiconductor process control systems, crucial for advanced chips, especially for AI applications.
KLA's TTM revenue reached $13.1 billion with a net income of $4.7 billion, resulting in a net margin of 35.7%.
KLA's TTM net margin improved from 32% to 35.7%, indicating strong profitability and expected margin expansion.
China accounted for 33% of KLA's fiscal 2025 revenue, with estimated revenue headwinds of $300 to $350 million due to U.S. export controls.
KLA trades at a premium P/E ratio of 49.1x to 52.53x, suggesting potential overvaluation compared to peers.
The semiconductor equipment cycle may face a digestion period as capital expenditures normalize, impacting KLA's service business.
Trailing total returns as of 11/7/2026, which may include dividends or other distributions. Benchmark is S&P 500 (^GSPC).
Check whether operating performance supports the current valuation.
Recent results and news deserve attention only when they alter the forward view.
| Quarter | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|
Q4 2026Latest Oct 28, 2026 | $1.22+2.5% vs $1.19 | $4.1B+2.3% vs $4.0B |
Q3 2026 Jul 28, 2026 | $1.05+5.0% vs $1.00 | $3.7B+1.4% vs $3.6B |
Q2 2026 Apr 29, 2026 | $0.94+2.5% vs $0.92 | $3.4B+1.2% vs $3.4B |
Q1 2026 Jan 29, 2026 | $0.89+1.1% vs $0.88 | $3.3B+1.5% vs $3.2B |
When a hedge fund cuts its stock pickers on the same day AI chip shares crater, it's tempting to read a verdict on the businesses.
Alta Advisers Ltd lifted its stake in shares of KLA Corporation (NASDAQ: KLAC) by 79.5% in the third quarter, according to its most recent Form 13F filing with the Securities and Exchange Commission (SEC). The fund owned 9,425 shares of the semiconductor company's stock after acquiring an additional 4,175 shares during the quarter.
MILPITAS, Calif., Nov. 5, 2026 /PRNewswire/ -- The KLA Corporation (NASDAQ: KLAC) Board of Directors today declared a quarterly cash dividend of $0.23 per share on its common stock, payable on Dec. 1, 2026 to KLA shareholders of record as of the close of business on Nov. 16, 2026.
Microsoft was the largest contributor, with its shares up 37.8% for the quarter. KLA and Applied Materials were the largest detractors, falling 35.3% and 29.2%. On a relative basis, three of the largest detractors were companies we did not own: NVIDIA, Apple, and Meta, which rose 14.3%, 15.2%, and 28.8%. We made one change to the portfolio during the quarter, purchasing Garmin and selling Verisk, and rebalanced outliers back to approximately equal weights during the same trade window.
Benchmark KLAC against direct peers instead of judging its metrics in isolation.
Key metrics vs top competitors for KLA Corporation (KLAC)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $138.49 | $180.91B | 37.84 | 11.71% | 35.57% | 87.5% | 0.58% | |
| $332.72 | $264.16B | 38.42 | 4.39% | 30.05% | 40.44% | 0.51% | |
| $200.44 | $250.66B | 34.80 | 26.02% | 32.34% | 71.75% | 0.5% | |
| $1424.75 | $549.12B | 51.59 | 15.58% | 34.14% | 63.92% | 0.49% | |
| $218.22 | $34.16B | 62.71 | 13.13% | 27.46% | 41.77% | 0.22% | |
| $173.28 | $8.62B | 62.33 | 1.82% | 11.84% | 6.5% | — |
KLA Corporation (KLAC) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
Verify the primary filings, follow material updates, and answer the remaining questions.
KLA Corporation (KLAC) SEC filings — annual & quarterly reports (10-K, 10-Q)
Oct 28, 2026·SEC
Aug 6, 2026·SEC
Jul 28, 2026·SEC
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KLA Corporation (KLAC) stock FAQ — growth, dividends, profitability & financials explained
KLA Corporation (KLAC) reported $14.51B in revenue over the trailing twelve months. Revenue was $13.58B in fiscal year 2026. That is 1216% more than the $1.03B of fiscal year 1997.
KLA Corporation (KLAC) grew revenue by 11.7% in fiscal year 2026, compared with the prior fiscal year.
Yes. KLA Corporation (KLAC) earned $5.26B in net income over the trailing twelve months (a 36.2% net margin).
Yes. KLA Corporation (KLAC) pays a dividend that yields 0.58% at the current price, a small yield.
KLA Corporation (KLAC) had a return on equity (ROE) of 87.5% in fiscal year 2026. That is well above the market's typical 10-15%.
KLA Corporation (KLAC) generated $4.04B in free cash flow over the trailing twelve months.
