KLA (NASDAQ:KLAC) Updates Q1 2027 Earnings Guidance

KLA (NASDAQ:KLAC) issued an update on its first quarter 2027 earnings guidance on Tuesday. The company provided EPS guidance of 1.060-1.260 for the period, compared to the consensus estimate of 1.130. The company issued revenue guidance of $3.8 billion-$4.2 billion, compared to the consensus revenue estimate of $3.9 billion.

Wall Street Analysts Forecast Growth

A number of analysts have commented on KLAC shares. Sanford C. Bernstein upped their price objective on shares of KLA from $187.50 to $197.50 and gave the company an “outperform” rating in a research note on Wednesday, May 20th. Wells Fargo & Company reissued an “overweight” rating and issued a $305.00 target price (up from $210.00) on shares of KLA in a research report on Monday, June 22nd. Argus upped their price target on shares of KLA from $175.00 to $195.00 and gave the company a “buy” rating in a research report on Friday, May 1st. Deutsche Bank Aktiengesellschaft reaffirmed a “hold” rating and issued a $175.00 price objective on shares of KLA in a research note on Thursday, April 30th. Finally, Susquehanna reissued a “neutral” rating and set a $275.00 target price on shares of KLA in a research note on Tuesday, June 30th. Twenty equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the stock presently has an average rating of “Moderate Buy” and an average price target of $218.41.

KLA Stock Down 6.2%

Shares of KLAC traded down $12.56 during trading hours on Tuesday, reaching $190.80. The company’s stock had a trading volume of 16,568,553 shares, compared to its average volume of 11,531,849. The firm has a market cap of $249.24 billion, a price-to-earnings ratio of 54.01, a P/E/G ratio of 2.00 and a beta of 1.41. KLA has a 1-year low of $83.22 and a 1-year high of $307.37. The company has a quick ratio of 2.11, a current ratio of 3.03 and a debt-to-equity ratio of 1.01. The company has a 50 day moving average of $223.91 and a two-hundred day moving average of $180.56.

KLA (NASDAQ:KLAC) last posted its quarterly earnings results on Tuesday, July 28th. The semiconductor company reported $1.05 EPS for the quarter, topping the consensus estimate of $1.00 by $0.05. The business had revenue of $3.66 billion during the quarter, compared to analysts’ expectations of $3.61 billion. KLA had a net margin of 35.66% and a return on equity of 91.89%. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, research analysts predict that KLA will post 3.71 EPS for the current fiscal year.

KLA Cuts Dividend

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

Insider Transactions at KLA

In related news, CFO Bren D. Higgins sold 27,701 shares of the stock in a transaction that occurred on Thursday, July 2nd. The stock was sold at an average price of $265.69, for a total value of $7,359,878.69. Following the transaction, the chief financial officer owned 263,472 shares in the company, valued at approximately $70,001,875.68. This represents a 9.51% decrease in their ownership of the stock. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Richard P. Wallace sold 45,120 shares of the firm’s 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 transaction, the chief executive officer directly owned 713,830 shares in the company, valued at approximately $157,996,990.71. The trade was a 5.95% decrease in their position. The disclosure for this sale is available in the SEC filing. Insiders sold 132,333 shares of company stock valued at $29,547,170 in the last three months. Corporate insiders own 91.48% of the company’s stock.

Trending Headlines about 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.

Institutional Investors Weigh In On KLA

Large investors have recently bought and sold shares of the business. CYBER HORNET ETFs LLC raised its holdings in KLA by 2.9% during the third quarter. CYBER HORNET ETFs LLC now owns 358 shares of the semiconductor company’s stock valued at $386,000 after buying an additional 10 shares in the last quarter. Sumitomo Life Insurance Co. increased its holdings in shares of KLA by 0.9% during the 4th quarter. Sumitomo Life Insurance Co. now owns 1,552 shares of the semiconductor company’s stock valued at $1,886,000 after acquiring an additional 14 shares during the last quarter. Monetary Management Group Inc. increased its holdings in shares of KLA by 0.4% during the 2nd quarter. Monetary Management Group Inc. now owns 3,773 shares of the semiconductor company’s stock valued at $3,380,000 after acquiring an additional 15 shares during the last quarter. Tandem Wealth Advisors LLC raised its stake in shares of KLA by 1.6% in the 2nd quarter. Tandem Wealth Advisors LLC now owns 1,043 shares of the semiconductor company’s stock valued at $934,000 after acquiring an additional 16 shares in the last quarter. Finally, Wellspring Financial Advisors LLC lifted its holdings in KLA by 8.3% in the 4th quarter. Wellspring Financial Advisors LLC now owns 223 shares of the semiconductor company’s stock worth $271,000 after purchasing an additional 17 shares during the last quarter. 86.65% of the stock is currently owned by institutional investors.

KLA Company Profile

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.