KLA (NASDAQ:KLAC) Posts Quarterly Earnings Results, Beats Estimates By $0.05 EPS

KLA (NASDAQ:KLAC) announced its earnings results on Tuesday. The semiconductor company reported $1.05 EPS for the quarter, beating analysts’ consensus estimates of $1.00 by $0.05, FiscalAI reports. KLA had a return on equity of 91.89% and a net margin of 35.66%.The company had revenue of $3.66 billion during the quarter, compared to the consensus estimate of $3.61 billion. KLA updated its Q1 2027 guidance to 1.060-1.260 EPS.

KLA Stock Down 6.2%

KLAC traded down $12.56 during midday trading on Tuesday, reaching $190.80. The company’s stock had a trading volume of 16,962,377 shares, compared to its average volume of 11,562,541. The firm has a market capitalization of $249.24 billion, a price-to-earnings ratio of 54.01, a PEG ratio of 2.00 and a beta of 1.41. The company has a current ratio of 3.03, a quick ratio of 2.11 and a debt-to-equity ratio of 1.01. KLA has a 1 year low of $83.22 and a 1 year high of $307.37. The stock’s 50-day moving average is $223.91 and its 200-day moving average is $180.56.

KLA Cuts Dividend

The firm also recently disclosed a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were paid a dividend of $0.23 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.92 annualized dividend and a yield of 0.5%. KLA’s payout ratio is presently 26.06%.

Analysts Set New Price Targets

A number of research analysts have issued reports on KLAC shares. Oppenheimer reissued an “outperform” rating and set a $260.00 price objective (up from $200.00) on shares of KLA in a research report on Thursday, July 16th. Morgan Stanley increased their price target on shares of KLA from $190.00 to $274.00 and gave the stock an “overweight” rating in a research note on Monday, July 6th. The Goldman Sachs Group raised their price objective on shares of KLA from $150.50 to $155.00 and gave the stock a “neutral” rating in a report on Thursday, April 30th. Royal Bank Of Canada upped their target price on KLA from $160.00 to $170.00 and gave the stock a “sector perform” rating in a report on Thursday, April 30th. Finally, Wolfe Research increased their target price on KLA from $180.00 to $200.00 and gave the stock an “outperform” rating in a research report on Friday, April 10th. Twenty investment analysts have rated the stock with a Buy rating and ten have assigned a Hold rating to the stock. According to data from MarketBeat.com, the company presently has an average rating of “Moderate Buy” and a consensus price target of $218.41.

Insider Buying and Selling at KLA

In other news, CEO Richard P. Wallace sold 45,120 shares of KLA stock in a transaction that occurred on Thursday, June 11th. The shares were sold at an average price of $221.34, for a total transaction of $9,986,725.44. Following the completion of the transaction, the chief executive officer directly owned 713,830 shares in the company, valued at approximately $157,996,990.71. This trade represents a 5.95% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which is accessible through the SEC website. Also, EVP Mary Beth Wilkinson sold 14,392 shares of the business’s stock in a transaction that occurred on Wednesday, July 1st. The stock was sold at an average price of $285.30, for a total value of $4,106,037.60. Following the completion of the sale, the executive vice president directly owned 53,367 shares in the company, valued at approximately $15,225,605.10. This represents a 21.24% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last quarter, insiders sold 132,333 shares of company stock valued at $29,547,170. Corporate insiders own 91.48% of the company’s stock.

Institutional Investors Weigh In On KLA

Institutional investors have recently modified their holdings of the stock. CYBER HORNET ETFs LLC raised its position in shares of KLA by 2.9% in the 3rd quarter. CYBER HORNET ETFs LLC now owns 358 shares of the semiconductor company’s stock worth $386,000 after purchasing an additional 10 shares during the last quarter. Sumitomo Life Insurance Co. raised its holdings in KLA by 0.9% in the fourth quarter. Sumitomo Life Insurance Co. now owns 1,552 shares of the semiconductor company’s stock worth $1,886,000 after buying an additional 14 shares during the last quarter. Monetary Management Group Inc. lifted its stake in shares of KLA by 0.4% in the second quarter. Monetary Management Group Inc. now owns 3,773 shares of the semiconductor company’s stock worth $3,380,000 after buying an additional 15 shares in the last quarter. Tandem Wealth Advisors LLC lifted its stake in shares of KLA by 1.6% in the second quarter. Tandem Wealth Advisors LLC now owns 1,043 shares of the semiconductor company’s stock worth $934,000 after buying an additional 16 shares in the last quarter. Finally, Wellspring Financial Advisors LLC increased its position in shares of KLA by 8.3% during the fourth quarter. Wellspring Financial Advisors LLC now owns 223 shares of the semiconductor company’s stock valued at $271,000 after acquiring an additional 17 shares in the last quarter. 86.65% of the stock is owned by hedge funds and other institutional investors.

Key Headlines Impacting KLA

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal fourth-quarter revenue of $3.66 billion, above the midpoint of its forecast. GAAP diluted EPS of $1.04 and non-GAAP diluted EPS of $1.05 both reached the upper end of guidance. Full-year operating cash flow was $4.14 billion, free cash flow was $3.77 billion, and the company returned $3.35 billion to shareholders. KLA Corporation Reports Fiscal 2026 Fourth Quarter and Full Year Results
• Positive Sentiment: For fiscal first-quarter 2027, KLA forecast revenue of $3.8 billion to $4.2 billion, with a midpoint above the $3.9 billion analyst consensus. EPS guidance of $1.06 to $1.26 also has a midpoint slightly above consensus, suggesting continued demand for process-control equipment despite a wide range.
• Neutral Sentiment: Brokerages maintain an average “Moderate Buy” rating, while investor commentary highlights KLA’s strong results and exposure to semiconductor process-control demand. However, valuation remains a key consideration after the stock’s substantial advance over the past year. KLA Given Average Recommendation of Moderate Buy
• Negative Sentiment: Chip-equipment stocks broadly declined after reports that China is mass-producing domestic DUV lithography tools. The development raises concern about longer-term competition and reduced equipment demand in China, weighing on KLA alongside ASML, Applied Materials, and Lam Research. ASML Stock Plunges as China Announces Domestic DUV Lithography Production
• Negative Sentiment: Put-option purchases rose approximately 64% above average, signaling increased demand for downside protection or bearish speculation around the earnings release.

About KLA

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.