KLACNasdaqOptical Instruments & LensesUS GAAP · USD

KLA Corporation

KLA Corp supplies process control and yield-management equipment, software, and services used to make semiconductor wafers, reticles/masks, advanced packaging, PCBs, and related electronics more efficiently. Its systems help chipmakers detect defects, improve yields, and reduce waste across manufacturing and inspection steps, with services contributing a meaningful share of revenue from the installed base.

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Revenue13.6bn USD
+11.7 %y/y
Net income4,831m USD
+18.9 %y/y
Free cash flow3,767m USD
+0.5 %y/y

Fiscal year 2026 · change from previous year

Development 2021–2026

051015bn USD2021: 6.9 bn USD20212022: 9.2 bn USD20222023: 10.5 bn USD20232024: 9.8 bn USD20242025: 12.2 bn USD20252026: 13.6 bn USD202613.6
RevenueOperating profit (EBIT)
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Business

Share of revenue
Semiconductor Process Control90 %

Inspection, metrology, and process-control tools for wafer and chip manufacturing.

Specialty Semiconductor Process5 %

Tools for specialty semiconductor manufacturing and related process steps.

PCB and Component Inspection5 %

Inspection systems for printed circuit boards, substrates, and packaging.

Services22 %

Maintenance, support, and contract services for the installed base.

Products

Reported · share of revenue
48.8%23.0%19.9%FY2026100 %
  • Wafer Inspection48.8 %
  • Services23.0 %
  • Patterning19.9 %
  • Specialty Semiconductor Process3.7 %
  • PCB and Component Inspection3.4 %
  • Other Revenue1.1 %

Source: 10-K FY2026, revenue the company reports per product line (SEC XBRL). Shares are of the lines shown and add up to 100 %.

Customers

KLA sells primarily to semiconductor manufacturers, especially foundry/logic customers, memory makers, and other advanced chip producers that need tighter process control as device complexity rises. It also serves PCB, substrate, and advanced packaging customers, with large accounts such as TSMC and Samsung representing meaningful concentration risk. Customers buy KLA’s tools to improve yield, protect throughput, and support leading-edge and high-volume production.

Foundry/Logic Semiconductor Manufacturers

Buy process control and inspection systems to support leading-edge wafer production and AI-driven capacity expansion.

Memory Manufacturers

Buy tools for defect inspection and process monitoring to improve yields in DRAM and other memory nodes.

Advanced Packaging and Substrate Customers

Buy inspection and process-enabling tools for packaging, substrates, and heterogeneous integration.

PCB Manufacturers

Buy inspection systems to detect defects and improve quality in printed circuit board production.

Installed Base Service Customers

Buy maintenance, support, and contract services to keep existing KLA systems productive.

Strategy

KLA’s strategy centers on maintaining a technology edge in process control, expanding its installed base, and deepening customer relationships across the semiconductor manufacturing cycle. It is also prioritizing service growth, product R&D, and broad field coverage so it can stay embedded in customers’ production workflows and capture recurring revenue. Capital returns remain part of the strategy, with ongoing share repurchases and dividend increases supported by cash generation.

Maintain technology advantage in process controlMedium term

Customers need better yields and automation as device complexity rises.

Grow installed-base servicesMedium term

Service revenue increases with installed systems and supports recurring cash flow.

Deepen relationships with leading semiconductor customersShort term

Large fabs drive a substantial share of orders and influence technology adoption.

Return capital to shareholdersShort term

Strong cash generation supports buybacks and dividends without changing the core operating model.

Geography

KLA’s revenue base is heavily Asia-centric because most semiconductor manufacturing capacity is located there, and management says that trend is expected to continue. In the latest interim disclosure, China and Taiwan were the largest disclosed country exposures, with China at 26% of revenue and Taiwan at 32% in the three months ended March 31, 2025; the remaining regions were each below 20%. The company also maintains direct sales forces in Asia, the U.S., and Europe, which supports customer proximity and service coverage.

Risks

KLA is exposed to customer concentration, cyclical semiconductor capex, and trade/export restrictions that can limit sales or service in key markets. Its business also depends on maintaining a technology edge, protecting IP, and navigating geopolitical and supply-chain disruptions, especially in Asia where much of its revenue is generated. Because products are customized and orders are lumpy, delays or cancellations can create non-recoverable costs and margin volatility.

Sorted by severity
LowMediumHighLowMediumHighImpact →Likelihood →Export controls and trade restrictions1Highly concentrated customer base2Semiconductor cycle and customer capex timing3Cybersecurity and systems disruption4Technology and IP competition5
Impact is the risk’s severity and likelihood how probable it is over the next few years, both assessed from the company’s reports. Numbers match the list.
  1. Export controls and trade restrictionsImpact: HighLikelihood: High

    Laws and regulations may limit sales or service to certain customers, especially in China.

    Exposure: China revenue and service support

  2. Highly concentrated customer baseImpact: HighLikelihood: Medium

    A small number of semiconductor customers account for a substantial portion of sales, increasing volatility.

    Exposure: Foundry/logic and other large semiconductor accounts

  3. Semiconductor cycle and customer capex timingImpact: HighLikelihood: Medium

    Revenue depends on customer investment plans and procurement schedules, which are cyclical.

    ExposureFoundryLogicMemory spending
  4. Cybersecurity and systems disruptionImpact: MediumLikelihood: High

    Operational outages or data loss could interrupt service delivery and damage customer trust.

    Exposure: Global operations and installed-base support

  5. Technology and IP competitionImpact: MediumLikelihood: Medium

    Competitors can introduce better or cheaper tools, and IP disputes can block sales in some jurisdictions.

    ExposureProcess controlInspectionAdvanced packaging
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Accounting

Judgemental items
Revenue recognition for products and services

Revenue depends on shipment, installation, and service-contract timing, which can shift quarterly results.

Impact: Affects reported revenue mix and comparability across periods

Customer revenue deferrals and volume purchase agreements

Deferrals can delay recognition even when orders are strong.

Impact: Can smooth or delay revenue recognition

Goodwill and purchased intangible impairment

Valuation uses revenue forecasts, terminal growth, tax rates, and WACC assumptions.

Impact: Could create non-cash charges if assumptions weaken

Foreign currency translation

A large share of business is outside the U.S., so FX affects reported results.

Impact: Can move revenue, margins, and service income

Share repurchases and dividends

Capital returns are a visible use of cash and affect equity and per-share metrics.

Impact: Influences EPS and shareholder return profile

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Last updated: 24/09/2026