KLA Corporation · KLAC · FY2027 Q1 · Calendar Q4 2026

KLA posts record revenue as AI and advanced packaging demand accelerate

KLA's latest results support a constructive near-term operating thesis: AI infrastructure, advanced packaging, leading-edge logic and services are supporting growth, while management's raised market outlook signals confidence. The counterweight is execution risk from supply constraints, memory-related cost pressure, China growth and increased capex.

Reported After market closeNASDAQTechnology $207.20B market cap
100quality score

Earnings scorecard

Reported versus consensus
Reported EPS $1.22 Consensus $1.19
EPS surprise +2.5% Reported versus consensus
Reported revenue $4.14B Consensus $4.04B
Revenue surprise +2.3% Reported versus consensus

Market reaction

event-close to next-session close
Stock move +7.3% Event window
SPY move -0.4% Same window
Abnormal move +7.7% Stock minus SPY
Volume 0.3× Versus trailing sessions
Subsequent drift 0.0% Up to 20 sessions
KLACSPY benchmark

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Transcript intelligence

What changed

Relative to the prior quarter, management raised its guidance sentiment and wafer-equipment market outlook, reported record September-quarter revenue with operating margin above 46%, and highlighted expanded capacity plans. The company also identified an India land purchase as a notable component of quarterly capex.

Guidance delta

Management raised its wafer-equipment market outlook to above $200 billion for 2027 and provided Q4 revenue guidance of $4.7 billion plus or minus $200 million.

Key takeaways

  • Record September-quarter revenue and an operating margin above 46% marked strong execution.
  • AI infrastructure, advanced packaging and leading-edge logic were identified as major demand drivers.
  • Services revenue increased 14% year over year, supported by the installed base.
  • Advanced-packaging revenue is expected to exceed $1.1 billion, representing more than 70% year-over-year growth.
  • KLA is expanding supply-chain capacity while planning significant investment, including an India campus.

Management priorities

  • Invest in R&D and next-generation advanced-packaging tools.
  • Scale global manufacturing and service capabilities.
  • Add headcount in manufacturing, service and engineering.
  • Improve memory efficiency in system design.
  • Execute the 2030 target model with incremental operating-margin leverage.

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Earnings History

Estimate Beat Miss Match
KLAC REVENUE earnings history estimate and actual scatter chart 10 reported fiscal quarters and 2 future estimate-only quarters. Q2 '24 estimate $2B Q2 '24 actual $2B, beat Q3 '24 estimate $2B Q3 '24 actual $2B, beat Q4 '24 estimate $3B Q4 '24 actual $3B, beat Q1 '25 estimate $3B Q1 '25 actual $3B, beat Q4 '25 estimate $3B Q4 '25 actual $3B, beat Q1 '26 estimate $3B Q1 '26 actual $3B, beat Q2 '26 estimate $3B Q2 '26 actual $3B, beat Q3 '26 estimate $3B Q3 '26 actual $3B, beat Q4 '26 estimate $4B Q4 '26 actual $4B, beat Q1 '27 estimate $4B Q1 '27 actual $4B, beat Q2 '27 estimate $4B Q3 '27 estimate $5B
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Analyst Consensus ?

ConsensusBuy42 ratings
Bullish2764.3%
Neutral1330.9%
Bearish24.8%

1 unmapped firm rating excluded from the percentages.

Analyst 52W Price Targets

$169.29Current
$26.5Low
$142.91Average
$325High

Latest persisted target per named analyst; persisted current price from FN2's market snapshot as of Oct 29, 2026. Not an FN2 forecast.

Firm-level rating actions

FMP grade actions identify the grading firm, not a named analyst.

FirmRatingPrior ratingActionDate
Morgan Stanley Overweight OverweightMaintainOct 6, 2026
UBS Neutral NeutralMaintainSep 1, 2026
Wells Fargo Overweight OverweightMaintainJul 29, 2026
Susquehanna Neutral NeutralMaintainJul 29, 2026
Stifel Buy BuyMaintainJul 29, 2026
Show 38 more rating actions

Named analyst price targets

Upside is calculated against the persisted current price $169.29. FMP does not supply a rating on these named-analyst rows.

FirmAnalyst52W targetPrice when postedUpsideDate
Morgan StanleyAnalyst unavailable$227$206.85 +34.1%Oct 6, 2026
UBSAnalyst unavailable$200$175.45 +18.1%Sep 1, 2026
RBC CapitalAnalyst unavailable$180$179.02 +6.3%Jul 29, 2026
SusquehannaAnalyst unavailable$215$190.8 +27.0%Jul 29, 2026
Stifel NicolausAnalyst unavailable$250$190.8 +47.7%Jul 29, 2026
See 121 more

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Company context

Snapshot as of publication

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. The company organizes its business into four main segments: Semiconductor Process Control, Specialty Semiconductor Process, PCB, Display and Component Inspection, and an 'Other' category. For integrated circuit (IC) fabrication, KLA offers a comprehensive range of products. These include systems for wafer inspection, review, and metrology; defect inspection and metrology for both wafers/substrates and reticles; chemical and materials quality analysis tools; and real-time process management and wafer handling diagnostics essential for IC and original equipment manufacturer (OEM) production. Furthermore, the company develops software for live process control, defect excursion identification, process corrections, and defect classification. KLA also supplies refurbished and remanufactured equipment.…

Historical context

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Sources

  1. Earnings call transcript and parsed analysis · 2026-10-29T04:05:43.231618+00:00
  2. FN2 earnings calendar · 2026-10-29T01:23:20.584741+00:00
  3. Polygon adjusted daily market bars · 2026-10-29T14:40:44.568686+00:00
  4. Financial Modeling Prep analyst price-target consensus and quote snapshot · 2026-10-29T14:40:44.566054+00:00

Methodology

Reported and consensus figures come from FN2's earnings event records. Market reaction and volume are calculated from daily adjusted bars around the event; abnormal move subtracts the SPY move over the same window.

Analyst target low, average, and high values are derived at request time from each named analyst's latest persisted FMP target. The current-price marker comes from FN2's persisted market snapshot. They are sell-side estimates, not an FN2 valuation or recommendation.

Transcript intelligence is a structured synthesis of the current and prior earnings-call analyses. Missing values stay missing and are never estimated.

By FN2 Research · Updated · As of 2026-10-29. For educational purposes only; not investment advice.