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What this page is: Delvantic's full research page for KLA Corporation (KLAC) — AI-driven forensic equity research: mechanical valuation models (DCF, EPV, anchored-PE, scenario) plus three independent AI lenses (Quality / Value / Sentiment). Everything below is rendered server-side; you are not missing content that requires JavaScript. All scores are predictions and research opinions, not financial advice.
Our current read (analysis of 2026-08-23): Designation Watch · Gem Score +15 (−100…+100 Quality+Value blend) · Quality 85 · Value -43 · Sentiment -68 (timing only, not weighted) · Composite fair value $76.28 vs $192.80 at analysis
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profile-header/price-overview— company profile, live quote, market capextended-analysis— the core: three AI lens reads with findings, scores, and the analyst memofuture-predictions— our forward price-band predictionsmarket-narrative/ai-findings/gpt-critique— narrative context, cross-model findings, and an adversarial critique of our own analysis (near the end of the document)- Members-only sections (render as login gates for anonymous readers):
price-history,income-trend,key-metrics,financials(statement tables),insider-trading. The analysis above is public; the raw data tables require a free account.
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any ticker resolves at delvantic.com/stock/TICKER ·
raw inputs are public-company filings and market data (via licensed data feeds);
every model, score, lens read, and prediction on this page is Delvantic's own analysis.
KLA Corporation
KLAC NASDAQKLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related nano-electronics industries worldwide. The company specializes in inspection, metrology, and data analytics products that detect defects, verify precise measurements on semiconductor wafers during research, development, and high-volume manufacturing. It operates through key segments including Semiconductor Process Control, which offers a comprehensive portfolio of products and services; Specialty Semiconductor Process; and PCB, Display, and Component Inspection. KLA Corporation also provides exposure to etch and deposition within the wafer fabrication equipment market. Serving major chipmakers, it plays a critical role in enhancing manufacturing yields and quality for advanced electronics production. Founded in 1975 and headquartered in Milpitas, California, KLA Corporation maintains a dominant position in the process control segment of the semiconductor industry.
Price Overview
Price History (1 Year)
Revenue & Net Income Trend
| Period | Revenue | Net Income | Net Margin | YoY/QoQ |
|---|
Key Metrics
EPS (Diluted): 30.37
Total Equity: $4.69B
Shares: 133,750,000
Total Debt: $5.88B
Cash: $2.08B
EBITDA: $5.41B
Total Debt: $5.88B
Cash: $2.08B
Revenue: $12.16B
Revenue: $12.16B
Revenue: $12.16B
Total Equity: $4.69B
Tax Rate: 12.5%
Equity: $4.69B
Total Debt: $5.88B
Cash: $2.08B
Current Liabilities: $4.09B
Long-Term Debt: $5.88B
Total Debt: $5.88B
Total Equity: $4.69B
Shares: 133,750,000
Shares: 133,750,000
CapEx: -$335.26M
Shares: 133,750,000
Stock Price: $195.45
Net Income: $4.06B
Industry Benchmarks
Income Statement (Annual)
Last updated: Jul 31, 2026 6:23pm (23d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Revenue | $6.9B | $9.2B | $10.5B | $9.8B | $12.2B |
| Cost of Revenue | $2.8B | $3.6B | $4.2B | $3.9B | $4.8B |
| Gross Profit | $4.1B | $5.6B | $6.3B | $5.9B | $7.4B |
| Operating Expenses | $1.7B | $2.0B | $2.3B | $2.2B | $2.4B |
| Operating Income | $2.5B | $3.7B | $4.0B | $3.6B | $5.0B |
| Net Income | $2.1B | $3.3B | $3.4B | $2.8B | $4.1B |
| EBITDA | $2.8B | $4.0B | $4.4B | $4.0B | $5.4B |
| EPS | $13.49 | $22.07 | $24.28 | $20.41 | $30.53 |
| EPS (Diluted) | $13.37 | $21.92 | $24.15 | $20.28 | $30.37 |
Balance Sheet (Annual)
Last updated: Jul 31, 2026 9:15am (23d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Cash & Equivalents | $1.4B | $1.6B | $1.9B | $2.0B | $2.1B |
| Total Current Assets | $5.7B | $7.2B | $8.4B | $10.0B | $10.7B |
| Total Assets | $10.3B | $12.6B | $14.1B | $15.4B | $16.1B |
| Current Liabilities | $2.1B | $2.9B | $3.7B | $4.7B | $4.1B |
| Long-Term Debt | $3.4B | $6.7B | $5.9B | $5.9B | $5.9B |
| Total Liabilities | $6.9B | $11.2B | $11.2B | $12.1B | $11.4B |
| Total Equity | $3.4B | $1.4B | $2.9B | $3.4B | $4.7B |
| Retained Earnings | $1.3B | $366.9M | $848.4M | $1.1B | $2.2B |
Cash Flow (Annual)
Last updated: Jul 31, 2026 6:23pm (23d ago)| Metric | 2021 | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|---|
| Operating Cash Flow | $2.2B | $3.3B | $3.7B | $3.3B | $4.1B |
| Capital Expenditure | -$231.6M | -$307.3M | -$341.6M | -$277.4M | -$335.3M |
| Free Cash Flow | $2.0B | $3.0B | $3.3B | $3.0B | $3.7B |
| Acquisitions (net) | $0 | -$479.1M | -$27.1M | -$3.7M | $0 |
| Net Debt Issued / (Repaid) | -$70.0M | -$620.0M | -$1.1B | $0 | -$750.0M |
| Dividends Paid | -$559.4M | -$638.5M | -$732.6M | -$773.0M | — |
| Stock Buybacks | -$938.6M | -$4.0B | -$1.3B | -$1.7B | -$2.1B |
| Net Change in Cash | $200.2M | $150.3M | $343.0M | $49.3M | $101.8M |
Growth Trends (YoY %)
Last updated: Jul 31, 2026 6:23pm (23d ago)| Metric | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| Revenue Growth | +33.1% | +13.9% | -6.5% | +23.9% |
| Gross Profit Growth | +35.5% | +11.7% | -6.3% | +25.8% |
| Operating Income Growth | +46.8% | +9.3% | -9.0% | +37.9% |
| Net Income Growth | +59.8% | +2.0% | -18.5% | +47.1% |
| EBITDA Growth | +42.4% | +9.8% | -8.4% | +34.0% |
Dividend History (Last 20)
Last updated: Jul 31, 2026 9:15am (23d ago)| Date | Dividend | Declaration | Record | Payment |
|---|---|---|---|---|
| 2026-05-18 | $2.30 | — | — | — |
| 2026-02-17 | $1.90 | — | — | — |
| 2025-11-17 | $1.90 | — | — | — |
| 2025-08-18 | $1.90 | — | — | — |
| 2025-05-19 | $1.90 | — | — | — |
| 2025-02-24 | $1.70 | — | — | — |
| 2024-11-18 | $1.70 | — | — | — |
| 2024-08-15 | $1.45 | — | — | — |
| 2024-05-14 | $1.45 | — | — | — |
| 2024-02-15 | $1.45 | — | — | — |
| 2023-11-14 | $1.45 | — | — | — |
| 2023-08-14 | $1.30 | — | — | — |
| 2023-05-12 | $1.30 | — | — | — |
| 2023-02-10 | $1.30 | — | — | — |
| 2022-11-14 | $1.30 | — | — | — |
| 2022-08-12 | $1.30 | — | — | — |
| 2022-05-13 | $1.05 | — | — | — |
| 2022-02-11 | $1.05 | — | — | — |
| 2021-11-12 | $1.05 | — | — | — |
| 2021-08-13 | $1.05 | — | — | — |
Deep Analysis
Narrative Economics
market-narrative step).
Claude Reading
The raw numbers tell a clean story that several of the prior models seem to be mis-framing. Quarterly revenue has climbed monotonically from $2.57B (Jun-24) to $3.42B (Mar-26) — that's not deceleration, that's a 33% run over seven quarters. Net income margins are sitting at 35% with the latest print at $1.20B, annualizing to ~$4.8B NI vs. the $4.06B FY2025 print. FCF conversion is real — $3.75B on $4.08B OCF, capex-light at $335M. This is textbook oligopoly economics (KLA owns process control inspection with ~85% share in its niche), and the recent-YoY numbers (rev +23.9%, earnings +47.1%) reflect the AI capex cycle pulling wafer fab equipment demand hard.
Now — the stated P/E of 6.47 and EV/EBITDA of 5.54 are almost certainly wrong or stale. At $195.45 and ~$4.8B run-rate NI on ~1.3B shares, actual P/E is ~53x trailing, or ~20x on forward earnings if you annualize the March quarter. KLA has historically traded 18-25x. The "6.47 P/E" is likely an FMP data artifact (perhaps using a stale share count or a divisor error), and the entire valuation synthesis claiming a $664 fair value and "+366% upside" is built on that broken input. I dissent from the synthesis verdict outright — this is not a stock trading at 6x earnings; the DCF is not showing a 79% discount; the "growth is free" claim is nonsense. The market-forces layer, which flags peak-cycle risk and insider selling despite the strong franchise, is doing the more honest work here.
The contrarian case actually cuts the other way from what synthesis argues. At ~20x forward on peak-ish WFE spend, KLA is priced for the AI capex cycle to sustain — which requires TSMC, Samsung, and Intel to keep adding leading-edge capacity at current pace. History says process control spend is cyclical (2019 trough, 2023 mid-cycle dip); a 15-20% revenue drawdown in a downcycle would compress earnings toward $3.5B and push the multiple to 25x+ on trough. Insider activity is one-sided sells (the July 2026 S-Sale of 27,701 shares plus F-InKind tax withholdings — no open-market buys), which is what you'd expect near a cycle peak. China exposure (~40% of WFE historically) faces ongoing export control tightening. The 4.07% "dividend yield" figure is also suspect at this price — actual yield is closer to 1%, another data-quality flag.
My read: KLAC is a fairly-valued to modestly overvalued high-quality compounder, not a screaming bargain. Fair value in the $170-200 range on normalized (not peak) earnings of ~$4.0-4.3B at 22-24x, so current $195 is roughly fair with slight downside skew given cycle position. I dissent from synthesis (which is corrupted by bad ratio inputs), partial-agree with market-forces (right conclusion, right reasons), and agree with the narrative layer's honest admission that fundamentals do all the work and the DCF gap is a calibration artifact. Own it if you already do; don't chase here; a pullback to $160-170 on any cycle wobble would be the actual entry.
GPT Reading
The first thing that jumps out is that the headline valuation is almost certainly polluted by a bad market-cap input. A company earning $4.06B in FY2025, with $3.75B of free cash flow, cannot simultaneously be worth $255.31B and trade at $195.45 with a 6.5x P/E and 2.16x sales. Those multiples imply an equity value closer to the $25-30B range, not $255B. So I would not take the model’s “366% upside” seriously; it is arithmetic on inconsistent inputs. What I do trust is the operating picture: KLA is putting up elite semiconductor-equipment economics. Annual revenue rebounded from $9.81B in FY2024 to $12.16B in FY2025, up 24%, while net income jumped from $2.76B to $4.06B, up 47%. Gross margin is 60.9%, operating margin 41.3%, and net margin 33.4% on the annual numbers, with the latest four quarters even stronger on net margin at roughly 35%-38% except for one 26.8% dip. That is not a cyclical mess; that is a near-oligopoly earning supernormal returns.
The quarterly progression also tells a better story than the “decelerating” label suggests. Revenue has stepped up from $2.57B in Jun-2024 to $2.84B, $3.08B, $3.06B, $3.17B, $3.21B, $3.30B, and now $3.42B. That is not smooth hypergrowth, but it is a clear upward staircase, and net income has held around $1.1B-$1.2B for five straight quarters. On a trailing four-quarter basis using the last four reported quarters, revenue is about $13.10B and net income about $4.67B, which annualizes above the FY2025 base rather than below it. Balance-sheet risk is manageable: $5.88B debt against $2.08B cash is fine for a business with $4.08B operating cash flow and a 2.62 current ratio. Equity is only $4.69B, which makes ROE of 86.6% look spectacular but also a bit flattered by buybacks and capital returns; still, ROIC at 51.6% says the business quality is genuinely exceptional, not just optically levered.
My read is therefore simple: if the valuation multiples are the right ones, the stock is obviously cheap; if the market cap is the right figure, the stock is wildly expensive. Since the price-per-share and ratio set are internally consistent while the market cap is not, I anchor to the former and conclude the stock is materially undervalued, with the market discounting either a severe earnings collapse or a multi-year downcycle that the current numbers do not show. At around 6.5x earnings and roughly 2.2x sales for a company growing revenue 24% and earnings 47% year over year, the bar is set absurdly low for a business with KLA’s margin structure and cash generation. Even if earnings normalized down from a roughly $4.7B trailing run rate toward $3.5B, the implied multiple would still look undemanding for a mission-critical process-control franchise.
The best case against that view is that semicap numbers always look safest near the top. KLA’s June 2025 quarter posted a 37.9% net margin, and the following quarters held in the mid-30s, which could represent peak mix, favorable customer concentration, or deferred pain before fab spending rolls over. The 2023 to 2024 revenue decline from $10.50B to $9.81B is a reminder that this is not a steady software annuity. China exposure, export controls, and customer capex concentration can turn a “cheap 6.5x” into a value trap fast if earnings halve. The recent insider sales, while not huge in context and mixed with in-kind transactions, do not help the bullish optics. A smart bear would also say the low multiple is not a mistake but the market correctly capitalizing peak-cycle profit at a trough multiple. That argument has real force; I weigh it lower only because the quarterly sequence so far shows continued demand resilience rather than rollover, and because KLA’s service, installed base, and process-control indispensability typically make its earnings less volatile than more wafer-fab-capacity-exposed tool vendors.
What would change my mind is straightforward. If quarterly revenue falls back below $3.0B and net margin slips under 30% for two consecutive quarters, the “temporary peak” bear case is likely right and the low multiple deserves to stay low. Likewise, if trailing free cash flow drops materially below $3.0B without a clear one-off cause, I would stop treating the current earnings power as durable. On the other hand, if KLA keeps printing $3.3B-$3.5B revenue with roughly $1.1B+ quarterly net income, the stock should not sit at a single-digit earnings multiple for long. The core issue here is not business quality; it is whether today’s earnings are cyclical peak or a higher plateau. The data in hand still argues for plateau.
Grok Reading
The numbers describe a cash machine the market is treating like a distressed cyclicals scrapheap. KLA just closed FY2025 at $12.16B revenue and $4.06B net income—up from $9.81B and $2.76B the prior year—with a 60.9% gross margin, 41.3% operating margin, and 33.4% net margin. Free cash flow was $3.75B on only $335M of capex, a 31% FCF margin that funded a 4.1% dividend yield while still leaving the balance sheet manageable: $5.88B of debt against $2.08B cash is a net-debt/FCF ratio under 1.0x. Sequential quarterly revenue has marched higher for eight straight prints, from $2.57B in June 2024 to $3.42B in March 2026, with net margins locked in the mid-30s after a one-quarter dip. ROIC of 52% and ROE of 87% are not the metrics of a business in structural decline. At a 6.5x P/E, 5.5x EV/EBITDA and 2.2x sales, the stock is priced for earnings to roughly halve and stay there. The recent data simply do not show that collapse beginning.
The model stack is internally at war with itself, and the data adjudicate. Valuation Synthesis screams +367% upside to a $665–$900 fair-value band; Market Forces and the Narrative layer counter that the DCF is miscalibrated and that peak-cycle risk plus China create asymmetric downside. The Narrative engine is half-right that there is no cult premium—this is pure fundamentals—but half-wrong that the 6.5x multiple already embeds “realistic modest expectations.” A mature earner growing revenue at a 7.6% CAGR and earnings at 9.5%, still printing sequential growth into calendar 2026, does not deserve crisis multiples unless the next two years deliver a deep WFE depression. The “decelerating revenue” secondary flag is weak on inspection: absolute dollars keep rising, and the 23.9% recent revenue YoY / 47% earnings YoY simply reflect the FY2024 trough comps rolling off. Insider activity is mostly tax-withholding F-InKind trades plus one modest sale block; calling it “massive selling” overreaches. The real tension is cyclicality versus price: even if net income mean-reverts toward $2.5–3.0B, the stock is still only 8–10x those trough earnings for a 50%+ ROIC franchise.
The strongest opposing case is straightforward and must be respected. Semiconductor equipment is violently cyclical; FY2023–25 already showed the pattern ($10.5B → $9.8B → $12.2B). If 2025 was the AI-capex blow-off and foundry/logic spend rolls over for three years, revenue could settle back toward $9–10B and earnings toward $2.5B, erasing the “cheap on peak” illusion. Customer concentration among three or four mega-fabs, export-control risk on China, and a debt-to-equity ratio of 1.25x all amplify downside in a risk-off tape. The Narrative layer’s warning that DCF terminal assumptions are too generous is fair—$665–$900 targets imply a full re-rating to mid-20s earnings multiples plus sustained high-single-digit growth that history does not guarantee. A smart bear argues you are being paid a 4% yield to own peak earnings, and that the multiple compression is rational positioning ahead of the downturn the quarterly “low revenue confidence” flag is whispering about.
I would reverse to neutral or bearish if two consecutive quarters print sequential revenue below $3.0B with net margins compressing under 28%, or if forward commentary guides FY2026 revenue down more than 15%. Confirmation of a multi-year WFE trough from the large foundries would do the same. Conversely, another two quarters of $3.3B-plus revenue with stable mid-30s margins would force the multiple to re-rate and make even the aggressive fair-value band relevant.
Big-3 Panel — where each AI stands
Advanced Analysis Forensic deep-dive · separate lenses
KLA's business quality is exceptional. Revenue grew from $6.92B (2021) to $12.16B (2025), operating margin expanded to 41.2% (from 36%), and net income hit $4.06B on 60.9% gross margins - a rare combination of scale, margin, and growth in cap equipment. FCF of $3.75B tracks net income closely (OCF/NI 1.07x, accruals -1.3% of assets), Beneish M at -2.25 and Altman Z at 15.94 indicate no manipulation signals and deep solvency.
Verify before trusting this (5)
- Customer concentration - exposure to top foundry/memory customers (TSMC, Samsung, Intel, SK Hynix)
- Composition and maturity ladder of the debt driving the -$3.81B net cash position
- Backlog and services mix as a stabilizer against WFE cyclicality
- China revenue exposure and any export-control impact on process control tools
- Any pending acquisitions or contingent liabilities not visible in the summary financials
The e2e composite fair value of $664.65 and signal-adjusted $900.06 imply a 3-4x mispricing that simply is not credible for a $255B, well-followed process-control monopoly trading at consensus semi-cap multiples. The anchored P/E of $1,526.50 is clearly a broken input (likely extrapolating peak-cycle EPS on a rich multiple) and should be discarded; the EPV floor of $237.86 and DCF of $447.11 bracket a more defensible deserved range, but even the DCF likely bakes in perpetual AI-capex tailwinds. Stripping the outlier and haircutting the DCF for cyclicality and customer concentration (TSMC/Samsung/Intel drive most WFE spend), a deserved value in the $190-240 zone feels honest for this quality of business. That puts the current $192.80 near the low end of fair - not a bargain, not egregious. What is priced in: continued process-control dominance, mid-teens revenue growth through the AI/advanced-node cycle, 40%+ operating margins, and ongoing buybacks. What is NOT a free lunch: any WFE downturn, memory capex air-pocket, or China export-control escalation. Earnings quality is pristine, so no haircut there - the Fortress grade justifies a premium multiple, but the market already awards it.
Verify before trusting this (5)
- Next quarter WFE guidance and China revenue exposure
- Process control segment growth vs total WFE (share gains or losses)
- Backlog and book-to-bill trend
- Any memory customer capex commentary from TSMC/Samsung/Micron calls
- Buyback pace vs FCF
The macro backdrop is nominally risk-on (VIX 15.8, S&P near highs), but that tailwind is not landing on KLAC. The semi-equipment cohort (KLAC, LRCX -16%, AMAT -11%) is being sold as a group on China export-control anxiety and doubts about the durability of AI-driven wafer fab equipment spend. With beta 1.46 and cyclical customer concentration, KLAC absorbs sector-level fear amplified, and news flow explicitly flags it as a stock under 'bearish pressure' after a ~40% slide from June highs.
Verify before trusting this (4)
- Whether LRCX/AMAT stabilize - a cohort bottom would relieve KLAC pressure fastest
- Any China export-control headline (relief or escalation)
- Next earnings tone on WFE outlook and hyperscaler capex commentary
- Sell-side target revisions post-drawdown - stabilizing consensus vs continued cuts
This lens hasn't been run for this ticker yet.
When we made this prediction on Aug 6, 2026, KLAC was $192.80. We expect it to be $240.00 by Feb 2027, and we consider it great value under $165.00. This is an early model (v0.6.0) — the direction is more reliable than the exact price. Made Aug 6, 2026.
Blue is our prediction, starting the day we made it. Grey is a slower route to the same place — the same destination, taking longer. Black is the actual price, so you can see how we are doing.