KLAC
KLA Corporation

KLA CorporationKLAC

Technology · Semiconductor Equipment & Materials
188.32USD
+2.36%
Sep 23, 2026
KLAC overview ready
Critical supplier of process-control and yield-management equipment for semiconductor fabs
KLA is a critical process-control and yield-management equipment supplier to semiconductor fabs.
Strong narrative exposure
Exposed to the Semiconductor Supply Chain Localization narrative through Domestic Fab Equipment and Specialty Processes — bottleneck supplier.
No clear price read
Longer-term context reads near trend floor, with a near-term setup of daily advance.
Demanding valuation
The price embeds expectations that run ahead of what comparable businesses command.
Fundamentals under pressure
Ev / sales is weak.
Primary risk
Cyclicality of semiconductor capital spending.
Market Sep 22Filing Jun 30Price action Sep 22Research Jul 29

Conviction Level

NarrativeHeat8.7ThemeHeat7.8PriceAction5.4Valuation0.3CompanyPosition9.3
Price
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Price Action

No clear price read
Longer-term context reads near trend floor, with a near-term setup of daily advance.
EntryConstructive

Structure is constructive, but price remains well extended from the long-term weekly base and the earlier reset has already been partly recovered — a workable rather than ideal entry location.

Key Financials

Market Cap
$246.0B
Avg Volume (60D)
10.6M
60 sessions
Revenue Growth YoY
+11.7%
FY2026 vs FY2025
Gross Margin
+30.5%
Trailing twelve months
Operating Margin
+41.7%
Trailing twelve months
Free Cash Flow Yield
+1.5%
Distance from 200DMA
+7.8%
Next Earnings
2026-10-28
P/E
50.9x
EV / Sales
18.4x
Market metrics as of Sep 22, 2026
Financial results for the period ended Jun 30, 2026
Filed balance-sheet data as of Jun 30, 2026

Fundamentals & Valuation

Only one valuation perspective could be built for this company, and it reads expensive.
KLA Corporation has an Expensive valuation stance because the price embeds expectations that run ahead of what comparable businesses command. It trades at a 1.5% free-cash-flow yield and 18.4x revenue, which require sustained delivery to be justified.

Company Research

Thesis
KLA is a critical process-control and yield-management equipment supplier to semiconductor fabs. Its inspection, metrology, analytics, and related service offerings help manufacturers detect defects, control nanometer-scale process variation, accelerate production ramps, and improve die yield.
Opportunity
Moderate opportunity
US semiconductor-capacity investment requiring process equipment, process control, inspection, metrology, and specialty manufacturing capability for advanced-node, memory, and packaging production ramps.
Key risk
Cyclicality of semiconductor capital spending.

Narrative & Theme

Semiconductor Supply Chain Localization
Part of Domestic Fab Equipment and Specialty Processes, with strong fit.
It is a strong adjacent fit to the same domestic-fab-equipment demand system.
Narrative HeatHot8.7 / 10
Theme HeatHeating up7.8 / 10
This reading is no longer current (last measured 2026-07-27). It is kept until the next scheduled measurement replaces it.

Business & Markets

Technology · Semiconductor Equipment & Materials
What they do

KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries globally through three segments: Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection.

How it earns

The company generates revenue primarily through transactional sales of its inspection, metrology, and process control equipment and related services.

Products & services
Inspection and review tools for wafers
Metrology systems for pattern dimensions and film properties
Customers & end markets
Semiconductor manufacturers
Electronics industry companies
Market position

KLA is a market leader in semiconductor process control and inspection equipment.

Demand drivers
High cyclicality

Semiconductor equipment demand is closely tied to the cyclical semiconductor manufacturing industry and capital expenditure cycles.

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