NASDAQ · KLAC

KLA Corporation

Technology · Semiconductors

$177.18▼ 3.13% ($5.73)at close

After hours$176.65▼ 0.30%7:59 PM ET

52-week

$93.75$307.37

Market cap

What the market price implies · Reverse DCF

To support a price of $177.18, this model requires revenue to grow by 30.51%/yr over the next 10 years, compounded annually.

Historical revenue grew by 10.19%/yr over the past 4 years. The required annual growth rate is 20.32 percentage points higher.

Selected forecast · Base scenario

7.89%/yr · actual 10-year annualized revenue growth

Year 1 growth: 12.37%

Market-implied · Base operating assumptions + edited margins

30.51%/yr · flat 10-year annualized revenue growth

Reverse DCF solves revenue growth itself using Base operating assumptions and your edited margins. Changing forecast growth alone does not change the implied rate. This is a model-implied requirement, not an analyst forecast.

Valuation

Recommended · Revenue & margin DCF

Price used

$177.18

Estimated value / share

$40.29

Base scenario

This estimate is 77.26% below the price used.

USD · TTM ending 2026-06-30

Year 1 growth 12.37% · Ending margin 30% · Discount rate 12.67%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 1:11 AM UTC · provider

Why this method?

The current business still looks structurally different from what it should look like in steady state, so a revenue-and-margin transition model is more honest than compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 17 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 23.5%.

Do you have 5+ years of positive FCFF history? 17 consecutive positive FCFF years are available.

Is the business model structurally similar to what it should be in 10 years? Revenue is still growing 15.2%, above the 15.0% maturity threshold, so a steady-state FCFF model would lean too heavily on a business still scaling.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inModerate confidence

1Y Price: 89.98%Revenue (TTM): 11.71%FCF (TTM): 0.62%P/FCF: 98th pct

What changed

The stock rose 89.98% over the last year. Revenue grew 11.71% over the trailing twelve months. Operating margin moved from 41.25% to 41.69%. Free cash flow grew 0.62% 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 (98th 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 41.69% — continued expansion would be needed to justify the premium. Revenue growth of 11.71% 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.

Performance

Return analysis

Company profile

KLA Corporation specializes in creating, manufacturing, and distributing advanced solutions vital for process control, process optimization, and yield enhancement throughout the global semiconductor and broader electronics industries.

CEORichard Wallace

SectorTechnology

IndustrySemiconductors

Employees17,100

IPO dateOct 8, 1980

https://www.kla.com

Market multiples

Forward P/E—

EV/EBITDA69.49

Enterprise value$400.2B

Stock splits

Jun 12, 2026↑ Forward

Every 1 shares became 10

+900%

Jan 19, 2000↑ Forward

Every 1 shares became 2

+100%

Oct 2, 1995↑ Forward

Every 1 shares became 2

+100%

Dec 17, 1984↑ Forward

Every 2 shares became 3

+50%

Dec 9, 1983↑ Forward

Every 1 shares became 2

+100%

Jan 10, 1983↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth15.21%

Gross margin61.3%▲0.4ppvs FY2025

Operating margin41.69%▲0.4ppvs FY2025

ROE87.5%▼13.3ppYoY

Analyst consensus

RatingBuy

Target price$222.82▲25.76%

Buy

Hold

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

Oct 28, 2026

Q4 FY26 · EPS est $1.17 · Revenue est $4.04B

View

Dividends

$0.84/shareQuarterlyDividend Achiever · 10yrSafe

KLAC pays a dividend with a 0.47% dividend yield, 10 consecutive years of growth, growing at 17.5% annually, covered 3.6× by free cash flow.

Dividend Yield

0.47%

Annual Div / Share

$0.84

5yr CAGR

+17.5%

Doubles every ~4.3yr

Payout Ratio

21.9%

Safe

Dividend Growth Rate

3yr CAGR

+17.33%

5yr CAGR

+17.5%

10yr CAGR

+14.98%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.84+16.7%

2025$0.72+24.1%

2024$0.58+11.5%

2023$0.52+16.9%

2022$0.45+18.7%

2021$0.38+8.7%

2020$0.34+15.0%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$5/yr

$0/mo

In 5 yrs

$8/yr+76%

$1/mo

In 10 yrs

$15/yr+211%

$1/mo

Today	In 5 yrs	In 10 yrs
$5/yr $0/mo	$8/yr+76% $1/mo	$15/yr+211% $1/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 0.47% → 1.47% 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 3.6× 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 17.5% 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.

NASDAQ · KLAC

KLA Corporation

Technology · Semiconductors

$177.18▼ 3.13% ($5.73)at close

After hours$176.65▼ 0.30%7:59 PM ET

52-week

$93.75$307.37

Market cap

What the market price implies · Reverse DCF

To support a price of $177.18, this model requires revenue to grow by 30.51%/yr over the next 10 years, compounded annually.

Historical revenue grew by 10.19%/yr over the past 4 years. The required annual growth rate is 20.32 percentage points higher.

Selected forecast · Base scenario

7.89%/yr · actual 10-year annualized revenue growth

Year 1 growth: 12.37%

Market-implied · Base operating assumptions + edited margins

30.51%/yr · flat 10-year annualized revenue growth

Valuation

Recommended · Revenue & margin DCF

Price used

$177.18

Estimated value / share

$40.29

Base scenario

This estimate is 77.26% below the price used.

USD · TTM ending 2026-06-30

Year 1 growth 12.37% · Ending margin 30% · Discount rate 12.67%

Assumption scenarios, not statistical confidence intervals.

Method, dates & sources

Estimated from future revenue, operating margins, and the investment needed to support them.

Price timestamp: Sep 10, 2026, 8:00 PM UTC
Financial statement period: TTM ending 2026-06-30
Data refreshed: Sep 11, 2026, 1:11 AM UTC · provider

Why this method?

The current business still looks structurally different from what it should look like in steady state, so a revenue-and-margin transition model is more honest than compounding current FCFF.

Is FCFF positive and has it been for 3+ consecutive years? 17 consecutive positive FCFF years are available.

Is FCFF stable (not swinging >30% year to year)? The largest recent FCFF swing is 23.5%.

Do you have 5+ years of positive FCFF history? 17 consecutive positive FCFF years are available.

Price vs Fundamentals

Why The Stock Is Moving

Optimism is getting priced inModerate confidence

1Y Price: 89.98%Revenue (TTM): 11.71%FCF (TTM): 0.62%P/FCF: 98th pct

What changed

The stock rose 89.98% over the last year. Revenue grew 11.71% over the trailing twelve months. Operating margin moved from 41.25% to 41.69%. Free cash flow grew 0.62% 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 (98th percentile) while business metrics are improving. More of the upside is already embedded in the multiple now.

What would invalidate this read

Performance

Return analysis

Company profile

CEORichard Wallace

SectorTechnology

IndustrySemiconductors

Employees17,100

IPO dateOct 8, 1980

https://www.kla.com

Market multiples

Forward P/E—

EV/EBITDA69.49

Enterprise value$400.2B

Stock splits

Jun 12, 2026↑ Forward

Every 1 shares became 10

+900%

Jan 19, 2000↑ Forward

Every 1 shares became 2

+100%

Oct 2, 1995↑ Forward

Every 1 shares became 2

+100%

Dec 17, 1984↑ Forward

Every 2 shares became 3

+50%

Dec 9, 1983↑ Forward

Every 1 shares became 2

+100%

Jan 10, 1983↑ Forward

Every 1 shares became 2

+100%

Profitability & growth

Revenue growth15.21%

Gross margin61.3%▲0.4ppvs FY2025

Operating margin41.69%▲0.4ppvs FY2025

ROE87.5%▼13.3ppYoY

Analyst consensus

RatingBuy

Target price$222.82▲25.76%

Buy

Hold

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

Oct 28, 2026

Q4 FY26 · EPS est $1.17 · Revenue est $4.04B

View

Dividends

$0.84/shareQuarterlyDividend Achiever · 10yrSafe

KLAC pays a dividend with a 0.47% dividend yield, 10 consecutive years of growth, growing at 17.5% annually, covered 3.6× by free cash flow.

Dividend Yield

0.47%

Annual Div / Share

$0.84

5yr CAGR

+17.5%

Doubles every ~4.3yr

Payout Ratio

21.9%

Safe

Dividend Growth Rate

3yr CAGR

+17.33%

5yr CAGR

+17.5%

10yr CAGR

+14.98%

Dividend Safety

10/10Safe

Dividend History

Annualized dividend cycles per share

YearAnnual DivYoY

2026$0.84+16.7%

2025$0.72+24.1%

2024$0.58+11.5%

2023$0.52+16.9%

2022$0.45+18.7%

2021$0.38+8.7%

2020$0.34+15.0%

Income Projection

Invest

Growth rate:

Reinvest dividends

Today

$5/yr

$0/mo

In 5 yrs

$8/yr+76%

$1/mo

In 10 yrs

$15/yr+211%

$1/mo

Today	In 5 yrs	In 10 yrs
$5/yr $0/mo	$8/yr+76% $1/mo	$15/yr+211% $1/mo

Long-range projections use a capped 12% annual growth assumption.

Yield-on-cost grows from 0.47% → 1.47% 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 3.6× 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 17.5% 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.