DailyIQ
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Last updated 3 minutes ago

KLAC·KLA Corporation

$.
+. (+.%)
After Hours
High
$232.10
Open
$225.11
Market Cap
302.76B
52W High
$307.37
Low
$221.03
P. Close
$231.22
P/E
64.82
52W Low
$83.22
Fwd P/E
45.43
DailyIQ Est.
$239.20
Technical Score (1D)
23
SELL
News Sentiment
68
BULLISH
KLA shares surged after reports that Chinese regulators may soon allow limited imports of Nvidia’s H200 AI processors, which would lift demand for AI‑enabled semiconductor equipment. The potential import lift signals a broader easing of China’s AI chip restrictions, which could accelerate the adoption of advanced lithography tools that KLA supplies. This development dovetails with KLA’s recent 9.2% lift in quarterly EPS guidance, which the company attributes to strong AI demand and a robust order pipeline. The guidance upgrade has positioned KLA as a benchmark for AI‑driven valuation multiples, raising expectations for the company’s earnings trajectory. In line with the bullish outlook, Morgan Stanley has raised its price target to $274 from $190, citing the generational cycle of AI infrastructure and KLA’s backlog growth beyond one year. TD Cowen also upgraded its target to $260, underscoring confidence in KLA’s role in the lithography market and its ability to capture demand for advanced process tools. Traders should monitor China’s final import approval decision and any subsequent AI chip demand data, as these will confirm whether the supply chain can meet the anticipated surge. The next earnings release will be a key watch point, as it will provide updated guidance and insights into the AI order pipeline and backlog expansion. Additionally, keep an eye on any changes to KLA’s backlog beyond one year, as sustained growth there will reinforce the company’s valuation and support the bullish sentiment.
Earnings Summary
KLA Corporation is a leading provider of process control and yield management solutions for the semiconductor and electronics industries, offering inspection, metrology, and process‑enabling equipment that help customers improve quality and yield. The company operates in the highly competitive semiconductor equipment sector, where demand is closely tied to chip manufacturing cycles and emerging technologies such as AI. In the most recent reporting period, KLA posted revenue of $3.415 billion in Q3 2026, up from $3.174 billion in Q2 2025, reflecting a 7.7 % year‑over‑year increase, while EPS rose from $9.38 in Q2 2025 to $9.40 in Q3 2026, a modest 0.2 % gain; EPS data for Q2 2026 is not yet available, so a full quarter‑over‑quarter comparison is limited. Across the six quarters with complete EPS data, KLA consistently beat analyst estimates, recording EPS of $8.20 in Q4 2024, $8.41 in Q1 2025, $9.38 in Q2 2025, $8.81 in Q3 2025, and $9.40 in Q3 2026, all above guidance, underscoring a pattern of earnings resilience amid fluctuating revenue. Historically, the company has maintained a steady YoY revenue growth trajectory of roughly 6–7 % and EPS growth of similar magnitude, with no significant misses of analyst expectations. Recent news highlights a potential easing of China’s AI chip import restrictions, which could lift demand for KLA’s AI‑enabled tools and aligns with the company’s 9.2 % lift in quarterly EPS guidance; analysts have raised price targets and noted a backlog growth beyond one year, while also warning of margin pressure from rising input costs. Investors should watch the forthcoming Q4 2026 earnings release for confirmation of single‑digit EPS growth, management commentary on cost control, and any updates to the AI order pipeline and backlog, as these factors will shape short‑term sentiment and valuation expectations.

EPS

EstBeatMiss
$7.51$8.04$8.58$9.11$9.65Q4'24Q1'25Q2'25Q3'25Q3'26Q2'26
QtrEstActual+/−
Q2'26$8.97 - -
Q3'26$9.32$9.40+0.8%
Q3'25$8.62$8.81+2.2%
Q2'25$8.55$9.38+9.7%
Q1'25$8.08$8.41+4.0%
Q4'24$7.76$8.20+5.7%

Revenue

EstBeatMiss
$3.0B$3.1B$3.2B$3.4B$3.5BQ4'24Q1'25Q2'25Q3'25Q3'26Q2'26
QtrEstActual+/−
Q2'26$3.3B - -
Q3'26$3.4B$3.4B-0.6%
Q3'25 - $3.2B -
Q2'25 - $3.2B -
Q1'25 - $3.1B -
Q4'24 - $3.1B -
Full Earnings BreakdownEstimates, actuals, guidance, and historical context
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Market Data

KLAC Stock Snapshot

KLAC is currently trading at $231.60, giving KLA Corporation a market cap of 302.76B and a P/E ratio of 64.8. Today's range spans $221.03–$232.10, with shares opening at $225.11 and moving up $0.38 (0.2%) from the prior close. DailyIQ's technical score sits at 23/100 (SELL) with a news sentiment reading of 68/100.

Over the past year KLAC has traded between $83.22 and $307.37 - the current price is +178.3% off the 52-week low and -24.7% from the high. 37 analysts cover the stock with a Buy consensus and a mean 12-month target of $225.79 (range $150.00–$325.00), implying downside of -2.5%.

The path of least resistance for KLA Corporation (KLAC) is currently lower - 23/100 (SELL), bullish sentiment (68/100), price $231.60 (in the middle of its 52-week range within $83.22–$307.37). The current P/E ratio stands at 64.8. At 302.76B in Technology market cap, this large-cap name is in the zone where portfolio risk managers - not just traders - are making decisions. Trimming positions on technical deterioration is standard practice at this size, and the current setup gives them a clear rationale to act.

Analyst coverage for KLAC becomes a double-edged factor in a SELL phase: at 302.76B in Technology market cap, active coverage is high enough that downgrade risk is real and impactful. The 23/100 technical reading and bullish sentiment (68/100) at $231.60 (in the middle of its 52-week range) place the stock in the zone where one or two high-profile estimate cuts can convert a grinding decline into a sharper re-rating — the $83.22–$307.37 range establishes where that repricing lands.