Reading the tape
NASDAQ: KLAC
KLA Corporation
Technology · Semiconductors
Market Cap
$244.17B
52w High
$1,939.36
52w Low
$740.44
P/E
52.39
Volume
1.29M
Outstanding Shares
130.63M
Price vs Fundamentals
Why The Stock Is Moving
Optimism is getting priced inHigh confidence
1Y Price: 165.76%Revenue (TTM): 13.41%FCF (TTM): 14.34%P/FCF: 100th pct
What changed
The stock rose 165.76% over the last year. Revenue grew 13.41% over the trailing twelve months. Operating margin moved from 40.83% to 42.08%. Free cash flow grew 14.34% over the trailing twelve months.
What the market seems to be pricing
The stock is trading toward the richer end of its historical P/FCF range (100th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.
What would invalidate this read
Operating margin is at 42.08% — continued expansion would be needed to justify the premium. Revenue growth of 13.41% is encouraging, but any deceleration puts the stretched multiple at risk. This read changes if revenue, margins, and cash flow continue to improve faster than expected — in that case the richer multiple could still prove conservative.
Company profile
KLA Corporation designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide.
CEORichard Wallace
SectorTechnology
IndustrySemiconductors
Employees15,000
IPO dateOct 8, 1980
Valuation
Forward P/E—
EV/EBITDA23.06
Enterprise value$123.17B
Stock splits
Jan 19, 2000↑ Forward
Every 1 shares became 2
Oct 2, 1995↑ Forward
Every 1 shares became 2
Dec 17, 1984↑ Forward
Every 2 shares became 3
Dec 9, 1983↑ Forward
Every 1 shares became 2
Jan 10, 1983↑ Forward
Every 1 shares became 2
Profitability & growth
Revenue growth11.49%
Gross margin61.75%▲3.91%vs FY2024
Operating margin42.08%▲16.36%vs FY2024
ROE86.56%▲5.56%vs FY2024
Analyst consensus
RatingBuy
Target price$1,819.38▼2.66%
28
Buy
14
Hold
2
Sell
Analyst ratings tend to be lagging indicators. Use as one signal among many.
Earnings
Full quarter-by-quarter history of actuals vs estimates. Switch into compare mode to inspect one metric year-over-year.
Next report
Jul 30, 2026
Q3 FY26 · EPS est $9.97 · Revenue est $3.59B
View
Dividends
$7.60/shareQuarterlyDividend Achiever · 10yrSafeKLAC pays a dividend with a 0.41% dividend yield, 10 consecutive years of growth, growing at 16.15% annually, covered 4.1× by free cash flow.
Dividend Yield
0.41%
Annual Div / Share
$7.60
5yr CAGR
+16.15%
Doubles every ~4.6yr
Payout Ratio
21.55%
Safe
Dividend Growth Rate
3yr CAGR
+16.34%
5yr CAGR
+16.15%
10yr CAGR
+13.75%
Dividend Safety
10/10Safe
Dividend History
Annual dividends paid per share
YearAnnual DivYoY
2025$7.40+22.3%
2024$6.05+13.1%
2023$5.35+13.8%
2022$4.70+20.5%
2021$3.90+11.4%
2020$3.50+12.9%
2019$3.10+9.2%
Income Projection
Invest
$
Growth rate:
Reinvest dividends
Today
$4/yr
$0/mo
In 5 yrs
$7/yr+76%
$1/mo
In 10 yrs
$13/yr+211%
$1/mo
| Today | In 5 yrs | In 10 yrs |
|---|---|---|
$4/yr $0/mo | $7/yr+76% $1/mo | $13/yr+211% $1/mo |
Long-range projections use a capped 12% annual growth assumption.
Yield-on-cost grows from 0.41% → 1.26% over 10yr
Analysis
Dividend Strengths
Dividend Achiever
KLAC has raised its dividend for 10 consecutive years — qualifying as a Dividend Achiever, demonstrating long-term commitment to shareholder income.
Well-covered by free cash flow
The dividend is covered 4.1× by free cash flow, indicating the company generates sufficient cash to sustain and potentially grow the payout without straining its finances.
Strong dividend growth rate
The 5-year CAGR of 16.15% meaningfully outpaces inflation, compounding real income growth for long-term holders.
Risks to Watch
No strong risk signal stands out from the latest period pair.