Upside case
Bull case
$3534+103.9%
KLAC would need investors to value it at roughly 96x earnings — about 49x more generous than today's 47x forward P/E. That requires meaningful multiple expansion on top of continued earnings growth.
Analysis OverviewBuyUpdated May 1, 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
$1819
+5.0% vs today
Scenario Range
$1690 – $3534
Model bear to bull value window
Coverage
44
Published analyst ratings
Valuation Context
47.1x
Forward P/E · Market cap $227.7B
KLAC price targets
Three scenarios for where KLAC stock could go
Current
~$1733
Confidence
78 / 100
Updated
May 1, 2026
Where we are now
Current · $1733
Bear
$1690
Base
$2844
Bull
$3534
Market caseClosest to today
Base case
$2844+64.1%
At 77x on FY1 earnings, the base case reflects a reasonable but not stretched valuation. It prices in continued growth without assuming an exceptional setup.
Stress case
Bear case
$1690-2.5%
If investor confidence fades or macro conditions deteriorate, a 1x multiple contraction could push KLAC down roughly 2% 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
$227.7B
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
+5.3%
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
+9.4% YoY
FY2
$17.6B
+23.0% YoY
EPS Outlook
FY1
$39.15
+10.4% YoY
FY2
$49.85
+27.3% YoY
Trailing FCF (TTM)$4.0B
FCF Margin: 30.7%
Next Earnings
—
Expected EPS
—
Expected Revenue
—
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
Slightly Overvalued
Fair value est. $1551 — implies -10.2% from today's price.
Premium to Fair Value
10.2%
above fair value
Deep DiscountFair ValueVery Expensive
vs S&P 500 Trailing P/E
KLAC
57.1x
vs
S&P 500
25.1x
+127% premium
vs Technology Trailing P/E
KLAC
57.1x
vs
Technology
26.7x
+113% premium
vs KLAC 5Y Avg P/E
Today
57.1x
vs
5Y Average
25.8x
+121% premium
Forward PE
47.1x
S&P 500
19.1x
+147%
Technology
22.1x
+113%
5Y Avg
—
—
Trailing PE
57.1x
S&P 500
25.1x
+127%
Technology
26.7x
+113%
5Y Avg
25.8x
+121%
PEG Ratio
1.81x
S&P 500
1.72x
+5%
Technology
1.52x
+19%
5Y Avg
—
—
EV/EBITDA
41.1x
S&P 500
15.2x
+170%
Technology
17.5x
+135%
5Y Avg
19.9x
+107%
Price/FCF
60.9x
S&P 500
21.1x
+189%
Technology
19.5x
+212%
5Y Avg
26.3x
+132%
Price/Sales
18.7x
S&P 500
3.1x
+499%
Technology
2.4x
+667%
5Y Avg
8.1x
+132%
Dividend Yield
0.39%
S&P 500
1.87%
-79%
Technology
1.16%
-66%
5Y Avg
0.99%
-61%
| Metric | KLAC | S&P 500 | Technology | 5Y Avg KLAC |
|---|---|---|---|---|
| Forward PE | 47.1x | 19.1x+147% | 22.1x+113% | — |
| Trailing PE | 57.1x | 25.1x+127% | 26.7x+113% | 25.8x+121% |
| PEG Ratio | 1.81x | 1.72x | 1.52x+19% | — |
| EV/EBITDA | 41.1x | 15.2x+170% | 17.5x+135% | 19.9x+107% |
| Price/FCF | 60.9x | 21.1x+189% | 19.5x+212% | 26.3x+132% |
| Price/Sales | 18.7x | 3.1x+499% | 2.4x+667% | 8.1x+132% |
| Dividend Yield | 0.39% | 1.87% | 1.16% | 0.99% |
KLAC trades above S&P 500 benchmarks on 5 of 6 measured multiples — commands a broad premium across most valuation dimensions.
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 1.3% 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
1.3%
Dividend
0.4%
Buyback
0.9%
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
131M
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 April 11, 2026
High Risk
Supply Chain Bottlenecks
KLA is experiencing significant bottlenecks in optical components, causing extended lead times for its equipment. Despite being virtually sold out through 2027, these constraints can delay revenue recognition and result in missed sales opportunities as demand surges.
High Risk
Geopolitical & Regulatory Headwinds
China accounts for 30‑39% of KLA’s sales, exposing the company to export control regulations and geopolitical tensions. A slowdown in Chinese demand or new restrictions could defer or eliminate revenue, creating uncertainty for investors.
Medium
Valuation Premium Risk
KLA trades at high valuation premiums despite strong demand, making entry points difficult for some investors. The company has also experienced significant drawdowns during market downturns such as the Dot‑Com crash and the Global Financial Crisis.
Lower
Finance & Corporate Governance
KLA reports 39 finance‑related risks, including share‑price rights, accounting and financial operations, debt and financing, corporate activity, and market volatility. These risks could affect the company’s ability to raise capital and maintain financial stability.
Lower
Cyclical Demand Risk
The semiconductor sector is inherently cyclical, with demand subject to fluctuations. KLA’s performance is therefore vulnerable to downturns in the broader industry cycle.
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 April 11, 2026
Dominant Market Position & Demand
KLA is the leading supplier of process control systems essential for semiconductor manufacturing. The increasing complexity of AI, high‑performance computing, and advanced packaging drives higher process‑control intensity, meaning more inspection and measurement per wafer. This trend is expected to support multi‑year growth and stability for KLA.
AI & Advanced Computing Tailwinds
The AI boom is a significant catalyst, as KLA benefits from the rising complexity of AI chips and advanced packaging. This demand is projected to drive substantial wafer fab equipment spending, further boosting KLA’s sales.
Strong Financial Performance & Growth
Fiscal year 2025 revenue reached $12.16 billion, a 23.89% increase from the prior year. KLA targets $26 billion in revenue by 2030, with recurring services and an expanding installed base expected to support margin strength and earnings stability.
Capital Returns to Shareholders
KLA has a robust capital return program, including a $11 billion authorized share‑buyback program and a history of dividend increases for 16 consecutive years. These actions represent a meaningful portion of its market value and reinforce shareholder value.
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
$1732.90
52W Range Position
84%
52-Week Range
Current price plotted between the 52-week low and high.
52-Week Low
$675.27
+156.6% from the low
52-Week High
$1939.36
-10.6% from the high
1 Month
+12.52%
3 Month
+30.19%
YTD
+36.0%
1 Year
+150.0%
3Y CAGR
+65.0%
5Y CAGR
+40.9%
10Y CAGR
+38.0%
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
47.1x
vs 44.6x median
+6% above peer median
Revenue Growth
+9.4%
vs +10.6% median
-12% below peer median
Net Margin
35.7%
vs 24.7% median
+45% above peer median
| Company | Mkt Cap | Fwd PE | Rev Grw | Margin | Rating | Upside |
|---|---|---|---|---|---|---|
KLA KLAC KLA Corporation | $227.7B | 47.1x | +9.4% | 35.7% | Buy | +5.0% |
AMA AMAT Applied Materials, Inc. | $325.8B | 37.1x | +8.9% | 24.7% | Buy | +3.8% |
LRC LRCX Lam Research Corporation | $344.4B | 48.8x | +9.6% | 30.9% | Buy | +5.4% |
ASM ASML ASML Holding N.V. | $560.1B | 44.6x | +22.3% | 29.4% | Buy | +10.6% |
TER TER Teradyne, Inc. | $55.9B | 49.5x | +10.6% | 22.6% | Buy | -1.7% |
ONT ONTO Onto Innovation Inc. | $15.2B | 43.1x | +20.6% | 10.3% | Buy | +1.1% |
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 (0.9% buyback yield), with a modest 0.39% dividend — combining for 1.3% total shareholder yield. The dividend has grown for 10 consecutive years.
Dividend SustainableFCF Well Covered
Total Shareholder Yield
1.3%
Dividend + buyback return per year
Buyback Yield
0.9%
Dividend Yield
0.39%
Payout Ratio
22.3%
How KLAC Splits Its Return
Div 0.39%
Buyback 0.9%
Dividend 0.39%Buybacks 0.9%
Dividend Profile
Yield, cadence, and growth quality
Dividend / Share
Trailing annualized cash dividend
$6.76
Growth Streak
Consecutive years of dividend increases
10Y
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
1M
Approx. Share Reduction
0.9%
Shares Outstanding
Current diluted share count from the screening snapshot
131M
At 0.9%/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 | $1.90 | — | — | — |
| 2025 | $7.40 | +22.3% | 1.8% | 2.5% |
| 2024 | $6.05 | +13.1% | 1.5% | 2.2% |
| 2023 | $5.35 | +13.8% | 1.9% | 3.0% |
| 2022 | $4.70 | +20.5% | 10.1% | 11.4% |
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 $1819, implying +5.0% from the current price of $1733. The bear case scenario is $1690 and the bull case is $3534.
02What is the KLAC stock price target for 2026?
The Wall Street consensus price target for KLAC is $1819 based on 44 analyst estimates. The high-end target is $2000 (+15.4% from today), and the low-end target is $1450 (-16.3%). The base case model target is $2844.
03Is KLA Corporation (KLAC) stock overvalued in 2026?
KLAC trades at 47.1x times forward earnings. The stock trades at a notable premium to the broad market, which is typical for businesses with strong free cash flow and above-average growth expectations. Based on current multiples versus the peer group, the relative model signals slightly overvalued. 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) Supply Chain Bottlenecks — KLA is experiencing significant bottlenecks in optical components, causing extended lead times for its equipment. (2) Geopolitical & Regulatory Headwinds — China accounts for 30‑39% of KLA’s sales, exposing the company to export control regulations and geopolitical tensions. (3) Valuation Premium Risk — KLA trades at high valuation premiums despite strong demand, making entry points difficult for some investors. 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 (+9.4% year-over-year) and EPS of $39.15 (+10.4% year-over-year) for the upcoming fiscal year. The following year, analysts project $17.6B in revenue.
06When does KLA Corporation (KLAC) report its next earnings?
A confirmed upcoming earnings date for KLAC is not yet available. Check the Earnings section above for the most recent quarterly report dates and forward estimates.
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 (0.4% yield) and share repurchases ($2.1B TTM).