|KLAC Overview
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%

LATEST EARNINGS

Q1 FY2026
4 months ago
View source
Revenue
Net Income
EPS
  • 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.

Cash Flow Health

Free Cash Flow8/8 positive
TTM$4.4B
Q '26
$1.3B+18%
Q1 '26
$1.1B+0%
FCF Margin
TTM34.4%
Q '2638.3%+15%
Sector: 4.1%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: 239DPO: 33

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 Ratio21.7%
Free Cash Flow (TTM)$4.4B
Stock Repurchases (TTM)$2.0B
Capital Return / FCF68.7%
Est. Dividends Paid (TTM)$949.8M
Shows how management rewards shareholders

Operational Efficiency & Returns

Return on Invested CapitalTTM
183.2%
Moderate
+0.2% YoY+11.8%
P25MedianP75
75th pctl (med: 0.1%)
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%183.2% ROIC
Asset & CapEx Efficiency
Fixed Asset Turn
10.17x
8Q:10.13x
+136.6%
Invested Cap Turn
5.01x
8Q:5.02x
-21.8%
CapEx Intensity
15.1%
8Q:13.9%
CapEx/Depreciation
0.98x
Depreciation Rate Trend
⚠ Declining -3.4%
Asset-based ROIC formula

QUARTERLY TRENDS

Last 8 quarters + TTM

MetricTTMQ 2026Q1 2026Q4 2025Q3 2025Q2 2025Q1 2025Q4 2024Q3 2024
Revenue
$12.7B
$3.3B2.7%
$3.2B1.1%
$3.2B3.6%
$3.1B0.4%
$3.1B8.3%
$2.8B10.6%
$2.6B8.9%
$2.4B
Operating Income
$5.4B
$1.4B1.9%
$1.3B1.1%
$1.4B4.0%
$1.3B4.7%
$1.2B10.9%
$1.1B14.6%
$977.3M21.1%
$806.8M
Net Income
$4.6B
$1.1B2.2%
$1.1B6.8%
$1.2B10.5%
$1.1B32.0%
$824.5M12.8%
$945.9M13.1%
$836.4M39.1%
$601.5M
Operating Cash Flow
$4.8B
$1.4B17.7%
$1.2B0.3%
$1.2B8.7%
$1.1B26.2%
$849.5M14.6%
$995.2M11.5%
$892.6M1.9%
$910.0M
Free Cash Flow
$4.4B
$1.3B18.4%
$1.1B0.1%
$1.1B7.5%
$990.0M30.7%
$757.2M19.0%
$934.8M12.4%
$831.9M0.8%
$838.2M
Total Equity
N/A

Valuation Analysis

Fair Value
Price-to-EarningsTTM
35.2x
Valuation Lenses
Earnings
35.2x
vs sector
Cash Flow
6.3x
EV/FCF vs
Growth-Adj
0.8xPEG
Undervalued for growth
Quality-Adj
0.2P/E per %ROIC
ROIC: 183.2%
Shareholder Returns
Dividend
0.6%
Buyback
1.3%
Total Yield
1.9%
Market Cap$160.29B
EV
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%
1.8%
8Q:
+11.8%
vs Sector:0.1%

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 Margin61.6%

Capital Efficiency

Invested Capital Turnover5.01x

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
61.6%
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
Leverage Metrics
Debt-to-Equity
0.00x
Balance sheet risk & solvency analysis