At a glance
KLA-Tencor Corporation is worth $199.50B, about 42 times its fiscal 2026 earnings. Revenue grew 11.7% to $13.58B in fiscal 2026, with 35.6% kept as profit; over 5 years it has grown 14.4% a year. It pays a 3.02% dividend yield, raised every year for at least 9 years, and returned $15.56B to shareholders in dividends and buybacks over FY2022–FY2026. The stock returned +30.3% over the past year with dividends reinvested and +33.4% a year over five years, against +11.5% and +11.7% for the S&P 500. At its worst it fell 33.7% in the 2020 crash (S&P 500: 33.7%) and 37.7% in the 2022 bear market (S&P 500: 24.5%), and was back at its earlier high 1 month and 7 months after the lows.
The business in plain English
KLA makes machines and software that check chips for flaws during manufacturing, a job called "process control." Inspection tools hunt for tiny defects, and metrology tools (precision measuring instruments) confirm each layer is the right size. Advanced chips go through hundreds of steps. Catching problems early helps chipmakers waste fewer wafers, the silicon discs that chips are built on, and reach full production faster.
Revenue was about $13.6 billion in the fiscal year ended June 30, 2026. Most of it came from tool sales. Wafer inspection brought in about 49%. Patterning products, which are tied to printing circuit designs onto wafers, brought in about 20%. Service added 23%, mainly maintenance that keeps installed tools running. The Semiconductor Process Control segment produced 90% of revenue.
Two small segments make up the rest. PCB and Component Inspection (about 6%) checks printed circuit boards and chip packages. Specialty Semiconductor Process (about 4%) sells tools that lay down and etch thin layers for makers of power, radio-frequency and sensor chips. About 87% of revenue came from outside the US: China about 30%, Taiwan 27% and Korea 14%. Taiwan Semiconductor Manufacturing Company alone provided more than 10%. The drawback is concentration. China export rules or a spending pause by a few chipmakers can hit sales hard, and demand has historically moved in cycles.
Price history
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KLAC +30.3% over the year to Nov 2, 2026, total return with dividends reinvested.
How it makes money
By product or service
| Wafer Inspection | $6.63B | 48.8% |
| Service | $3.13B | 23% |
| Patterning | $2.71B | 19.9% |
| Specialty Semiconductor Process | $502.5M | 3.7% |
| PCB and Component Inspection | $460.3M | 3.4% |
| Other | $153.1M | 1.1% |
By business segment
| Semiconductor Process Control | $12.24B | 90.2% |
| PCB and Component Inspection | $750.4M | 5.5% |
| Specialty Semiconductor Process | $584.1M | 4.3% |
By geography
| China | $4.05B | 29.8% |
| Taiwan | $3.64B | 26.8% |
| Korea | $1.83B | 13.5% |
| North America | $1.76B | 12.9% |
| Japan | $915.1M | 6.7% |
| Europe and Israel | $726.7M | 5.4% |
| Rest of Asia | $654.4M | 4.8% |
Latest results
- In Q1 FY2027 (ended Sep 30, 2026), revenue was $4.14B, up 28.9% from a year earlier, and net income was $1.55B (+38.1%).
- For fiscal 2026, revenue was $13.58B (+11.7% year over year; +14.4% a year from FY2021 to FY2026) with a 35.6% net margin.
Financial health check
| Revenue growth a year (FY2021–FY2026) | +14.4% good |
|---|---|
| Free cash flow margin | 27.7% good |
| Return on equity (FY2026) | 76.1% good |
| Return on assets (FY2026) | 26.9% good |
| Net cash (cash minus debt) | $-4.19B weak |
| Fiscal year | Revenue | Net income | Free cash flow |
|---|---|---|---|
| FY2021 | $6.92B | $2.08B | $1.95B |
| FY2022 | $9.21B | $3.32B | $3.01B |
| FY2023 | $10.50B | $3.39B | $3.33B |
| FY2024 | $9.81B | $2.76B | $3.03B |
| FY2025 | $12.16B | $4.06B | $3.75B |
| FY2026 | $13.58B | $4.83B | $3.77B |
Valuation snapshot
| Market value | $199.50B |
|---|---|
| P/E ratio | 41.8 |
| Dividend yield | 3.02% |
Rank among 1514 US companies
Market value at each year end
KLA-Tencor’s market value went from $12.30B at the end of 2016 to $199.50B on Nov 2, 2026, about 16.2 times as much; since the end of 2025 it is up 25%.
Show as a table
| Year end | Market value | Change |
|---|---|---|
| Nov 2, 2026 | $199.50B | +25.0% |
| 2025 | $159.65B | +89.4% |
| 2024 | $84.28B | +6.7% |
| 2023 | $79.02B | +47.9% |
| 2022 | $53.43B | -18.1% |
| 2021 | $65.21B | +63.1% |
| 2020 | $39.99B | +42.2% |
| 2019 | $28.11B | +105.2% |
| 2018 | $13.70B | -16.8% |
| 2017 | $16.47B | +33.9% |
| 2016 | $12.30B |
Price behavior
| YTD | 1 yr | 3 yr | 5 yr | 10 yr | |
|---|---|---|---|---|---|
| KLAC price data to Nov 2, 2026 | +29.5% | +30.3% | +48.6% | +33.4% | +37.7% |
Show as a table
| Year | Price data |
|---|---|
| 2026 (to date) | +29.4% |
| 2025 | +94.5% |
| 2024 | +9.3% |
| 2023 | +56.0% |
| 2022 | -11.2% |
| 2021 | +68.0% |
| 2020 | +48.0% |
| 2019 | +104.0% |
| 2018 | -12.5% |
| 2017 | +36.8% |
| 2016 | +17.0% |
| 2015 | +2.0% |
| 2014 | +39.6% |
| 2013 | +39.0% |
| 2012 | -0.7% |
| 2011 | +25.2% |
| 2010 | +7.1% |
| 2009 | +66.3% |
| 2008 | -54.7% |
| 2007 | -3.1% |
| 2006 | +0.9% |
| 2008 financial crisis stocks fell Oct 9, 2007 – Mar 9, 2009 | Lost 71.2% over that stretch · deepest drop along the way 72.3%, back to its old high 40.2 months after the low |
|---|---|
| 2020 COVID crash stocks fell Feb 19, 2020 – Mar 23, 2020 | Lost 32.4% over that stretch · deepest drop along the way 33.7%, back to its old high 1.3 months after the low |
| 2022 bear market stocks fell Jan 3, 2022 – Oct 12, 2022 | Lost 36.2% over that stretch · deepest drop along the way 37.7%, back to its old high 7.4 months after the low |
Insider activity
Form 4 filings from 2025-10-30 to 2026-10-30 (25 read): 0 open-market purchases and 13 sales ($65.4M), 13 of them under pre-arranged 10b5-1 trading plans.
| Date | Insider | Type | Value |
|---|---|---|---|
| Aug 11, 2026 | Richard P Wallace President and CEO | sell (plan) | $17.4M |
| Aug 13, 2026 | Brian Lorig EVP, KLA Global Services | sell (plan) | $12.4M |
| Sep 15, 2026 | Richard P Wallace President and CEO | sell (plan) | $12.4M |
| Aug 12, 2026 | Bren D. Higgins EVP & Chief Financial Officer | sell (plan) | $6.6M |
| Aug 11, 2026 | Ahmad A. Khan President, Semi. Prod. & Cust. | sell (plan) | $6.6M |
Who owns it
Large shareholders (13G filings)
| Vanguard Capital Management | 7.49% | Mar 31, 2026 |
ETFs with the most weight in KLAC
| PSI Invesco Semiconductors ETF | 5.86% |
| TINY ProShares Nanotechnology ETF | 5.86% |
| CHPS Xtrackers Semiconductor Select Equity ETF | 5.23% |
| SOXX iShares Semiconductor ETF | 4.56% |
| SOXQ Invesco PHLX Semiconductor ETF | 4.54% |
| FTXL First Trust Nasdaq Semiconductor ETF | 4.49% |
| SMH VanEck Semiconductor ETF | 4.47% |
| LCLG Logan Capital Broad Innovative Growth ETF | 4.35% |
What could go wrong
- Trade limits on sales to China. U.S. export controls can bar KLA from selling some products or services to certain customers, especially in China, without licenses. China supplied 29.8% of fiscal 2026 revenue. Tariffs and retaliatory measures add further risk.
- Heavy reliance on a few chipmakers. KLA describes its customer base as highly concentrated. Taiwan Semiconductor Manufacturing Company provided more than 10% of revenue in each of fiscal 2024, 2025 and 2026. Order cuts by one big buyer could hurt.
- Chip spending rises and falls in cycles. KLA depends on chipmakers' equipment budgets, which rise and fall. Revenue fell from $10.5 billion in fiscal 2023 to $9.8 billion in fiscal 2024. A slowdown in AI-related spending could hurt demand.
- Losing its technology lead. Chipmaking changes fast. If KLA is late with new inspection and measurement tools, or cannot protect its proprietary technology, rivals could win orders. Its edge depends on heavy, continuing research spending.
- Shortages of parts and materials. KLA relies on some limited-source suppliers. Shortfalls of components, rare earth elements or DRAM memory chips could delay shipments or raise costs.
- Debt is larger than cash. As of June 30, 2026, KLA had about $5.9 billion of debt and $1.6 billion of cash and investments. Debt payments could divert money from operations, buybacks and dividends.
Recent events
- Quarterly results released
- Other company announcement
- Quarterly results released
- Bylaws or fiscal year changed
- Other company announcement
- Quarterly results released
- Investor presentation or announcement; Other company announcement
- Other company announcement
- Quarterly results released
- Bylaws or fiscal year changed; Shareholder vote results; Other company announcement
For income and retirement investors
KLA pays a growing dividend, but buybacks return more cash. Through fiscal 2026 it had raised the dividend at least nine years in a row. Adjusted for the 10-for-1 stock split, it rose from $0.36 a share in fiscal 2021 to $0.80 in fiscal 2026. That used about 22% of earnings and 28% of free cash flow (cash left after capital spending). From fiscal 2022 to 2026, buybacks totaled $11.5 billion, against $4.1 billion of dividends. With the shares at about 42 times earnings as of October 27, 2026, the income per dollar invested is modest. KLA warns future dividends are not assured.
In the 2008 financial crisis, the shares fell 72% and regained their peak about 40 months after the low. They fell 34% in the 2020 COVID crash, recovering by April 29, 2020, and 38% in the 2022 bear market, recovering by May 2023. Single stocks carry more risk than diversified funds.
Questions investors ask
How does KLA make money?
KLA makes most of its money selling inspection and measurement equipment that chipmakers use to spot defects and hit their production targets. Revenue was $13.6 billion in fiscal 2026, which ended June 30, 2026. Wafer inspection products made up 48.8% and patterning products 19.9%. Service, mainly maintenance on installed tools, added about 23%. By segment, Semiconductor Process Control produced 90.2% of revenue, with smaller units in circuit board inspection and specialty chipmaking tools.
Does KLA raise its dividend every year?
Yes. Through fiscal 2026, KLA had raised its regular dividend at least nine years in a row. Adjusted for the 10-for-1 stock split, dividends per share grew from $0.36 in fiscal 2021 to $0.80 in fiscal 2026, about 17% a year on average. The fiscal 2026 dividend used about 22% of earnings and 28% of free cash flow. KLA's annual report warns there is no assurance it will keep paying dividends at any particular amount.
How much of KLA's revenue comes from China?
About 30%. China was KLA's largest region in fiscal 2026 at 29.8% of revenue, or about $4.0 billion. Taiwan followed at 26.8%, Korea at 13.5% and North America at 12.9%. Overall, about 87% of revenue came from outside the U.S. This matters because U.S. export controls can stop KLA from selling some products or services to certain Chinese customers without licenses.
Who is KLA's biggest customer?
Taiwan Semiconductor Manufacturing Company. It was the only customer above 10% of KLA's revenue in each of fiscal 2024, 2025 and 2026, mainly in the Semiconductor Process Control segment. KLA's other large customers are leading chip and electronics manufacturers in Asia, the U.S. and Europe. The company describes its customer base as highly concentrated, so order cuts by a few big buyers could weigh heavily on sales.
How has KLA stock performed over the long term?
Very well, with deep drops along the way. As of October 27, 2026, the share price had risen about 2,363% over 10 years, an average of 37.8% a year, and 385% over five years. But the shares fell 72% in the 2008 financial crisis and 38% in the 2022 bear market. On the same date they traded at about 42 times fiscal 2026 earnings, meaning buyers paid about $42 for each $1 of annual profit. Past returns do not predict future ones.