KLAC

KLA CORP

Other • CIK: 0000319201

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Market Cap
$160.29B
P/E (TTM)
35.2x
Rev Growth (TTM)
+17.5%
Net Margin (TTM)
35.8%
FCF Yield (TTM)
2.7%
FCF Margin (TTM)
34.4%

What Changed

View Full Insights
10-Q Q2 FY2026 (filed 2026-01-30) vs 10-Q Q1 FY2026 (filed 2025-10-31)
PCB and Component Inspection — Revenue Growth+37.3%→-5.53%
PCB and Component Inspection — Segment Margin14.0%→-1.64%
Specialty Semiconductor Process — Revenue Growth-6.7%→-12.38%
Semiconductor Process Control — Revenue Growth+12.6%→+9.03%
Specialty Semiconductor Process — Segment Margin5.0%→7.64%

PCB and Component Inspection quarterly revenue growth — threshold: return to >0%...·PCI segment margin recovery above breakeven — threshold: >0% (currently -1.64%)·China revenue as share of total vs. FY2025 baseline of 33% given three...

Filing Intelligence

6.0/10
10-Q filed Jan 30, 2026 • FYNone

Executive Summary

AI and high-performance computing are driving significant demand, positioning the company for continued revenue growth, particularly in memory and advanced packaging segments.. Gross margins improved...

Key Concerns

  • ●Gross margins improved due to operational efficiencies and favorable mix, but future margin pressure is anticipated due to escalating DRAM...
  • ●Goodwill impairment testing date changed to better align with budgeting and strategic planning, but the change did not delay, accelerate,...
  • ●Significant purchase commitments of $2.75 billion, with a majority due within 12 months.
View Full Quarterly Insights →

LATEST EARNINGS

•
Q1 FY2026
•
5 months ago
•View source
Revenue
$3.21B
+13.0%
Net Income
$1.12B
+18.5%
EPS
$8.47
+20.8%
Net
34.9%↑ +1.6%
  • •Total revenues were $3.21 billion, above the midpoint of the guidance range.
  • •GAAP diluted EPS was $8.47 and non-GAAP diluted EPS was $8.81, both above guidance midpoints.
  • •Cash flow from operating activities was $1.16 billion for the quarter and $4.25 billion for the last twelve months.
  • •Free cash flow was $1.07 billion for the quarter and $3.88 billion for the last twelve months.
View Full Earnings →

Cash Flow Health

Free Cash Flow8/8 positive
TTM$4.4B
Q2 '26
$1.3B+18%
Q1 '26
$1.1B+0%
FCF Margin
TTM34.4%
Q2 '2638.3%+15%
Sector: 0.0%Top 10%
OCF Margin37.4%
OCF/NI1.05x
CapEx Coverage12.4x
FCF Yield2.7%
FCF Growth (2Y)+14%
Cash Conversion Cycle
270 days
DSO: 64+DIO: 239−DPO: 33
View Insights from Latest Filing →View Full Cash Flow Statement →

Capital Allocation & Returns

Growth Focused
Total Shareholder YieldTTM
TTM1.9%
Div Yield0.6%
+
Buyback (TTM)1.3%

Prioritizing reinvestment over distributions

Dividend & Payout Metrics
Dividend Yield (TTM)0.6%
FCF Payout Ratio22.4%
Free Cash Flow (TTM)$4.4B
Stock Repurchases (TTM)$2.0B
Capital Return / FCF68.7%
Est. Dividends Paid (TTM)$983.4M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
45.5%
Moderate
+0.1% YoY+11.4%
P25MedianP75
75th pctl (med: 0.0%)
DuPont BreakdownROIC = Margin × Turn × (1+D/E)
NOPAT Margin
36.6%
8Q: 35.1%
Asset Turnover
0.80x
8Q: 0.80x
Leverage (1+D/E)
1.00x
D/E: 0.00x
DuPont: 29.4% ≈ 45.5% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
10.17x
8Q:10.13x
+112.8%
Invested Cap Turn
1.24x
8Q:1.22x
+14.1%
CapEx Intensity
3.7%
8Q:3.5%
CapEx/Depreciation
0.98x
Depreciation Rate Trend
⚠ Declining -3.8%
Asset-based ROIC formula
Full Analysis

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ2 2026Q1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024
Revenue
$12.7B
$3.3B↑2.7%
$3.2B↑1.1%
$3.2B↑3.6%
$3.1B↓0.4%
$3.1B↑8.3%
$2.8B↑10.6%
$2.6B↑8.9%
$2.4B
Operating Income
$5.4B
$1.4B↑1.9%
$1.3B↓1.1%
$1.4B↑4.0%
$1.3B↑4.7%
$1.2B↑10.9%
$1.1B↑14.6%
$977.3M↑21.1%
$806.8M
Net Income
$4.6B
$1.1B↑2.2%
$1.1B↓6.8%
$1.2B↑10.5%
$1.1B↑32.0%
$824.5M↓12.8%
$945.9M↑13.1%
$836.4M↑39.1%
$601.5M
Operating Cash Flow
$4.8B
$1.4B↑17.7%
$1.2B↓0.3%
$1.2B↑8.7%
$1.1B↑26.2%
$849.5M↓14.6%
$995.2M↑11.5%
$892.6M↓1.9%
$910.0M
Free Cash Flow
$4.4B
$1.3B↑18.4%
$1.1B↑0.3%
$1.1B↑7.3%
$990.0M↑30.7%
$757.2M↓19.0%
$934.8M↑12.4%
$831.9M↓0.8%
$838.2M
Total Equity
N/A
Income StatementCash Flow StatementBalance Sheet

Valuation Analysis

Fair Value
Price-to-EarningsTTM
35.2x
Volatile
8Q: 118.3x-1711%
Valuation Lenses
Earnings
35.2x
vs – sector
Cash Flow
36.1x
EV/FCF vs –
Growth-Adj
0.8xPEG
Undervalued for growth
Quality-Adj
0.8P/E per %ROIC
ROIC: 45.5%
Shareholder Returns
Dividend
0.6%
Buyback
1.3%
Total Yield
1.9%
Market Cap$160.29B
EV$158.28B
Multi-angle valuation analysis with sector context

Business Quality & Moat

Overall Quality Score
92/100
Exceptional

Composite score: Returns (40%) + Consistency (30%) + Earnings Quality (30%)

Returns on Capital

Return on Equity (ROE)Top 10%
1.0%
8Q:–
Return on Invested Capital (ROIC)Top 25%
45.5%
8Q:–
+11.4%
vs Sector:0.0%

DuPont Analysis (ROIC = NOPAT Margin × Asset Turnover)

NOPAT Margin: 36.6%
Asset Turnover: 0.80x

Earnings Quality

Cash Conversion

1.05x

OCF / Net Income ✓

FCF Consistency

–

Positive quarters

Competitive Moat Indicators

Pricing Power

Gross Margin30.3%

Capital Efficiency

Invested Capital Turnover1.24x

Working Capital

Cash Conversion Cycle270 days

Growth Quality & Momentum

Moderate Growth
Growth Quality Score
74/100
Growth 40%
Margins 30%
FCF 20%
Consistency 10%

Growth Rates

Revenue Growth YoY
17.5%
OpInc Growth YoY
9.7%
EPS Growth YoY
44.6%
FCF 3Y CAGR
13.6%

Margin Quality & Sustainability

High Quality
Profitability Cascade
Gross
30.3%
Operating
42.0%
Top 25% in sector
Net
35.8%
Margins Unknown
Earnings Quality Signals
SBC / Revenue
—
FCF vs Net Gap
-1.4 pts
FCF: 34.4% | Net: 35.8%

Quality = stability + cash conversion + low dilution

Balance Sheet & Solvency

Fortress
Net Debt / EBITDA
Net Cash
(0.0x)Net Cash: $2.45B
Interest Coverage
–
+Net cash position: $2.45B
Balance sheet risk & solvency analysis

Research

All research