Upside case
Bull case
$360+38.8%
KLAC would need investors to value it at roughly 97x earnings — about 27x more generous than today's 70x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated Jun 18, 2026
KLA Corporation (KLAC) Stock Analysis
Wall Street verdict, consensus price target, and analyst rating breakdown — everything needed to frame the risk/reward at today's price.
Analyst consensus
Buy
Covering
44
analysts
28 bullish · 2 bearish · 44 covering KLAC
Strong Buy
0
Buy
28
Hold
14
Sell
2
Strong Sell
0
Consensus Target
$1921
+640.1% vs today
Scenario Range
$172 – $360
Model bear to bull value window
Coverage
44
Published analyst ratings
Valuation Context
70.0x
Forward P/E · Market cap $34.2B
KLAC price targets
Three scenarios for where KLAC stock could go
Current
~$260
Confidence
52 / 100
Updated
Jun 18, 2026
Where we are now
Current · $260
Bear
$172
Base
$273
Bull
$360
Market caseClosest to today
Base case
$273+5.3%
This is close to how the market is already pricing KLAC — at roughly 74x forward earnings. No dramatic re-rating needed, just steady execution on the core business.
Stress case
Bear case
$172-33.6%
If investor confidence fades or macro conditions deteriorate, a 24x multiple contraction could push KLAC down roughly 34% from where it trades now.
Not financial advice. Model confidence reflects internal scenario assumptions, not a guarantee of returns. Past performance does not predict future results.
KLA Corporation
KLAC · NASDAQTechnologySemiconductorsJune year-end
KLA Corporation is a leading provider of process control and yield management systems for semiconductor manufacturers. It generates revenue primarily from selling inspection, metrology, and process control equipment to chipmakers — with its Semiconductor Process Control segment contributing roughly 85% of total sales. The company's moat comes from its deep expertise in defect detection and measurement, creating mission-critical tools that semiconductor fabs cannot easily replace once integrated into their production lines.
Market Cap
$34.2B
Revenue TTM
$13.1B
Net Income TTM
$4.7B
Net Margin
35.7%
KLAC Revenue and Earnings Performance
Quarterly beat-or-miss track record against analyst estimates, plus forward revenue and EPS outlook for the next two fiscal years.
EPS Beat Rate
100%Exceptional
12 quarters tracked
Revenue Beat Rate
100%Exceptional
vs consensus estimates
Avg EPS Surprise
+5.0%
above Street consensus
Beat / Miss Record
BeatMissLeft = EPS · Right = Revenue
Q3 2025
Q4 2025
Q1 2026
Q2 2026
Last 4 Quarters
EPS beats: 4 of 4Q3 2025
EPS
$9.38/$8.56
Revenue
$3.2B/$3.1B
Q4 2025
EPS
$8.81/$8.63
Revenue
$3.2B/$3.2B
Q1 2026
EPS
$8.85/$8.79
Revenue
$3.3B/$3.2B
Q2 2026
EPS
$9.40/$9.17
Revenue
$3.4B/$3.4B
| Quarter | EPS (Actual / Est) | EPS Surprise | Revenue (Actual / Est) | Rev Surprise |
|---|---|---|---|---|
| Q3 2025 | $9.38/$8.56 | +9.6% | $3.2B/$3.1B | +3.1% |
| Q4 2025 | $8.81/$8.63 | +2.1% | $3.2B/$3.2B | +1.2% |
| Q1 2026 | $8.85/$8.79 | +0.7% | $3.3B/$3.2B | +1.5% |
| Q2 2026 | $9.40/$9.17 | +2.5% | $3.4B/$3.4B | +1.2% |
FY1–FY2 Estimates
Revenue Outlook
FY1
$14.3B
+8.9% YoY
FY2
$16.2B
+13.3% YoY
EPS Outlook
FY1
$5.37
+51.6% YoY
FY2
$6.08
+13.1% YoY
Trailing FCF (TTM)$4.0B
FCF Margin: 30.7%
Next Earnings
July 30, 2026
Expected EPS
$9.97
Expected Revenue
$3.6B
KLAC beat EPS estimates in 4 of 4 tracked quarters. A perfect track record raises the bar for the upcoming report.
KLAC Revenue Breakdown by Segment
Product and geographic revenue mix from the latest annual disclosure, with year-over-year growth by segment.
Latest disclosure
FY 2025
Total disclosed revenue $12.2B
Product Mix
Latest annual revenue by segment or product family
Defect Inspection
51.0%
+43.1% YoY
Tap, hover, or focus a slice to inspect segment detail.
Geographic Mix
Latest annual revenue by reported region
CHINA
33.3%
-3.7% YoY
Tap, hover, or focus a slice to inspect segment detail.
Defect Inspection is the largest disclosed segment at 51.0% of FY 2025 revenue, up 43.1% YoY.
CHINA is the largest reported region at 33.3%, down 3.7% YoY.
KLAC Valuation Snapshot
Current multiples compared to the S&P 500, the company's sector, and its own five-year average.
Relative Value Signal
Cheap versus peers
Fair value est. $2405 — implies +826.6% from today's price.
Upside to Fair Value
826.6%
potential upside
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
KLAC
8.5x
vs
S&P 500
24.4x
65% discount
vs Technology Trailing P/E
KLAC
8.5x
vs
Technology
29.0x
71% discount
vs KLAC 5Y Avg P/E
Today
8.5x
vs
5Y Average
2.6x
+231% premium
Forward PE
70.0x
S&P 500
18.8x
+272%
Technology
22.3x
+215%
5Y Avg
—
—
Trailing PE
8.5x
S&P 500
24.4x
-65%
Technology
29.0x
-71%
5Y Avg
2.6x
+231%
PEG Ratio
0.27x
S&P 500
1.66x
-84%
Technology
1.51x
-82%
5Y Avg
—
—
EV/EBITDA
6.8x
S&P 500
15.2x
-55%
Technology
16.6x
-59%
5Y Avg
2.9x
+137%
Price/FCF
9.1x
S&P 500
20.7x
-56%
Technology
19.2x
-52%
5Y Avg
2.6x
+248%
Price/Sales
2.8x
S&P 500
3.1x
-9%
Technology
2.4x
+15%
5Y Avg
0.8x
+249%
Dividend Yield
2.61%
S&P 500
1.91%
+36%
Technology
1.11%
+136%
5Y Avg
9.90%
-74%
| Metric | KLAC | S&P 500 | Technology | 5Y Avg KLAC |
|---|---|---|---|---|
| Forward PE | 70.0x | 18.8x+272% | 22.3x+215% | — |
| Trailing PE | 8.5x | 24.4x-65% | 29.0x-71% | 2.6x+231% |
| PEG Ratio | 0.27x | 1.66x-84% | 1.51x-82% | — |
| EV/EBITDA | 6.8x | 15.2x-55% | 16.6x-59% | 2.9x+137% |
| Price/FCF | 9.1x | 20.7x-56% | 19.2x-52% | 2.6x+248% |
| Price/Sales | 2.8x | 3.1x | 2.4x+15% | 0.8x+249% |
| Dividend Yield | 2.61% | 1.91% | 1.11% | 9.90% |
KLAC trades above S&P 500 benchmarks on 1 of 6 measured multiples — appears modestly priced relative to the S&P 500 on most measures.
Forward P/E and PEG reflect analyst consensus estimates. Historical averages use trailing ratios where forward data is unavailable.S&P 500 and sector benchmarks both use trailing median P/E — similar readings indicate the broader index and sector are priced alike.
Open valuation toolKLAC Financial Health
Verdict
Exceptional
KLAC generates $4.0B in free cash flow at a 30.7% margin — 46.5% ROIC signals a durable competitive advantage · returns 8.9% of market cap to shareholders annually.
Cash Engine
Revenue, margins, and cash generation
Revenue (TTM)
Trailing-twelve-month sales base
$13.1B
Revenue Growth
TTM vs prior year
+13.4%
Gross Margin
Gross profit as a share of revenue
61.8%
Operating Margin
Operating income divided by revenue
42.1%
Net Margin
Net income divided by revenue
35.7%
EPS (TTM)
Diluted earnings per share, trailing twelve months
$35.45
Free Cash Flow (TTM)
Cash generation after capex
$4.0B
FCF Margin
FCF as share of revenue — the primary cash quality signal
30.7%
Capital Quality
ROIC, leverage, and debt serviceability
ROIC
Return on invested capital — primary competitive quality signal
46.5%
ROA
Return on assets, trailing twelve months
28.3%
Cash & Equivalents
Liquid assets on the balance sheet
$2.1B
Net Debt
Total debt minus cash
$4.0B
Debt Serviceability
Net debt as a multiple of annual free cash flow
1.0× FCF
~1.0 years to full repayment at current FCF run-rate
ROE
Return on equity, trailing twelve months
89.1%
Shareholder Returns
How capital is returned to owners
Total shareholder yield
8.9%
Dividend
2.6%
Buyback
6.3%
Share Repurchases
Trailing buyback outflow — dollar magnitude of capital returned
$2.1B
Dividend / Share
Annualized trailing dividend per share
$6.76
Payout Ratio
Share of earnings distributed as dividends
22.3%
Shares Outstanding
Declining as buybacks retire shares
132M
All figures from the trailing twelve months. ROIC uses invested capital (equity + net debt).
Open full ratios pageKLAC Stock Risk Factors
Key factors that could pressure the stock price, compress the multiple, or weigh on future results.
AI analysis · updated June 18, 2026
High Risk
Valuation risk
Bears highlight rich valuation as a concern, especially after a 22% pullback from recent highs.
High Risk
China exposure
Geopolitical risks in China pose a threat to KLA's semiconductor equipment business.
Medium
Market cyclicality
As a semiconductor equipment supplier, KLA is exposed to industry cyclicality and capex fluctuations.
Lower
Competitive pressures
While dominant in process control, KLA faces ongoing competition in inspection and metrology systems.
These are risk mechanisms, not predictions. The key question is which would force a cut to earnings estimates or a lower multiple than the market currently prices in.
Why KLAC Stock Could Outperform
Structural drivers behind the upside case and why the stock could outperform over the next 12 months.
AI analysis · updated June 18, 2026
Process control leadership
KLA is a leader in advanced inspection tools, metrology systems, and computational analytics, providing critical process control solutions for semiconductor manufacturing.
Wide economic moat
The company has a wide moat, supported by its comprehensive portfolio of inspection and yield management systems, making it a dominant player in the semiconductor equipment space.
Strong financial performance
KLA recently reported Q3 2026 results that exceeded expectations on revenue, earnings, and gross margins, demonstrating robust financial health.
Stock split and investor confidence
The announcement of a 10-for-1 forward stock split and higher returns reflects strong investor confidence and potential for broader market appeal.
Semiconductor capex growth
Rising semiconductor capital expenditures and AI-driven equipment demand are key growth drivers for KLA's business.
Institutional ownership support
Top institutional holders like Vanguard Group (10.5% ownership) underscore strong institutional confidence in KLA's long-term prospects.
Yield management expertise
KLA's systems help manufacturers manage yield throughout the entire IC fabrication process, providing essential value in semiconductor production.
A real bull case compounds — each driver matters most when it strengthens margins, supports capital returns, and keeps the company above the market's minimum growth bar simultaneously.
KLAC Stock Price Performance
52-week range context and price returns across multiple time horizons. Dividend contribution is shown separately in the Capital Return section.
Current Price
$259.56
52W Range Position
12%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$83.22
+211.9% from the low
52-Week High
$1512.94
-82.8% from the high
1 Month
+47.77%
3 Month
+75.09%
YTD
+103.7%
1 Year
+197.9%
3Y CAGR
+77.5%
5Y CAGR
+53.5%
10Y CAGR
+42.8%
Range context matters because valuation compression and earnings misses rarely hit from the same starting point. A stock already far below its high can still fall, but it is no longer carrying the same embedded optimism as one pressing a fresh peak.
KLAC vs Peers
Valuation, growth, and margin comparison against the closest publicly traded peers for this company.
Peer Set
Accurate peer set
Forward PE
70.0x
vs 59.4x median
+18% above peer median
Revenue Growth
+8.9%
vs +11.5% median
-23% below peer median
Net Margin
35.7%
vs 29.3% median
+22% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
KLA KLAC KLA Corporation | $34.2B | 70.0x | +8.9% | 35.7% | Buy | +640.1% |
AMA AMAT Applied Materials, Inc. | $490.0B | 50.5x | +11.5% | 29.3% | Buy | -13.5% |
LRC LRCX Lam Research Corporation | $485.8B | 68.5x | +10.2% | 30.9% | Buy | -10.2% |
ASM ASML ASML Holding N.V. | $749.0B | 59.6x | +16.2% | 29.4% | Buy | -12.2% |
TER TER Teradyne, Inc. | $68.6B | 59.4x | +10.5% | 22.6% | Buy | -19.8% |
ONT ONTO Onto Innovation Inc. | $16.6B | 46.5x | +11.5% | 10.3% | Buy | +1.5% |
This peer comparison reflects companies with similar business models, product lines, or market positioning, supplemented by industry grouping when direct matches are limited.
KLAC Dividend and Capital Return
KLAC returns capital mainly through $2.1B/year in buybacks (6.3% buyback yield), with a modest 2.61% dividend — combining for 8.9% total shareholder yield. The dividend has grown for 16 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
8.9%
Dividend + buyback return per year
Buyback Yield
6.3%
Dividend Yield
2.61%
Payout Ratio
22.3%
How KLAC Splits Its Return
Div 2.61%
Buyback 6.3%
Dividend 2.61%Buybacks 6.3%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$6.76
Growth Streak
Consecutive years of dividend increases
16Y
3Y Div CAGR
16.3%
5Y Div CAGR
16.2%
Ex-Dividend Date
—
Payment Cadence
Quarterly
4 payments over the last 12 months
Buyback Engine
How much per-share support comes from repurchases
Repurchases (TTM)
Cash used for buybacks in the latest trailing period
$2.1B
Estimated Shares Retired
8M
Approx. Share Reduction
6.3%
Shares Outstanding
Current diluted share count from the screening snapshot
132M
At 6.3%/year, buybacks mechanically lift EPS even with flat earnings — each remaining share represents a slightly larger piece of the company.
| Year | Div / Share | YoY Grw | BB Yield | Total Yield |
|---|---|---|---|---|
| 2026 | $0.42 | — | — | — |
| 2025 | $0.74 | +22.3% | 17.9% | 25.5% |
| 2024 | $0.60 | +13.1% | 15.5% | 22.3% |
| 2023 | $0.54 | +13.8% | 19.3% | 30.1% |
| 2022 | $0.47 | +20.5% | 100.0% | 100.0% |
FAQ
7 questionsKLAC Investor Questions
Common questions answered from live analyst data and company financials.
01Is KLA Corporation (KLAC) stock a buy or sell in 2026?
KLA Corporation (KLAC) is rated Buy by Wall Street analysts as of 2026. Of 44 analysts covering the stock, 28 rate it Buy or Strong Buy, 14 rate it Hold, and 2 rate it Sell or Strong Sell. The consensus 12-month price target is $1921, implying +640.1% from the current price of $260. The bear case scenario is $172 and the bull case is $360.
02What is the KLAC stock price target for 2026?
The Wall Street consensus price target for KLAC is $1921 based on 44 analyst estimates. The high-end target is $2500 (+863.2% from today), and the low-end target is $1450 (+458.6%). The base case model target is $273.
03Is KLA Corporation (KLAC) stock overvalued in 2026?
KLAC trades at 70.0x times forward earnings. The stock currently trades at a discount to the broader market. Based on current multiples versus the peer group, the relative model signals cheap versus peers. Whether the stock is over or undervalued ultimately depends on whether consensus earnings estimates are achievable.
04What are the main risks for KLA Corporation (KLAC) stock in 2026?
The primary risks for KLAC in 2026 are: (1) Valuation risk — Bears highlight rich valuation as a concern, especially after a 22% pullback from recent highs. (2) China exposure — Geopolitical risks in China pose a threat to KLA's semiconductor equipment business. (3) Market cyclicality — As a semiconductor equipment supplier, KLA is exposed to industry cyclicality and capex fluctuations. Each factor has the potential to pressure earnings or compress the stock's valuation multiple.
05What is KLA Corporation's revenue and earnings forecast?
Analyst consensus estimates KLAC will report consensus revenue of $14.3B (+8.9% year-over-year) and EPS of $5.37 (+51.6% year-over-year) for the upcoming fiscal year. The following year, analysts project $16.2B in revenue.
06When does KLA Corporation (KLAC) report its next earnings?
KLA Corporation is expected to report its next earnings on approximately 2026-07-30. Consensus expects EPS of $9.97 and revenue of $3.6B. Over recent quarters, KLAC has beaten EPS estimates 100% of the time.
07How much free cash flow does KLA Corporation generate?
KLA Corporation (KLAC) generated $4.0B in free cash flow over the trailing twelve months — a free cash flow margin of 30.7%. KLAC returns capital to shareholders through dividends (2.6% yield) and share repurchases ($2.1B TTM).