KLAC

A month has gone by since the last earnings report for KLA (KLAC). Shares have added about 8% in that time frame, outperforming the S&P 500. But investors have to be wondering, will the recent positive trend continue leading up to its next earnings release, or is KLA due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important drivers. KLA reported fiscal fourth-quarter 2026 non-GAAP earnings of $1.05 per share, up 11.7% year over year, and beat the Zacks Consensus Estimate by 5%. Revenues increased 15.2% year over year to $3.66 billion and beat the consensus mark by 1.32%. Results benefited from AI infrastructure investment, leading-edge foundry/logic demand and rising process control intensity. Advanced packaging process control revenues are now expected to reach about $1.1 billion in calendar 2026. Semiconductor Process Control revenues were $3.26 billion, accounting for 89% of revenues. The segment grew 13% year over year and 6% sequentially, supported by demand for inspection, metrology and related services across advanced logic, memory and packaging applications.Specialty Semiconductor Process revenues rose 13% year over year to $160 million but declined 3% sequentially. PCB and Component Inspection revenues surged 56.5% year over year and 44% sequentially to $241.1 million, reflecting stronger demand tied to high-performance computing packages and integration. Wafer Inspection remained the largest product category, generating $1.78 billion, or 49% of revenues. Sales increased 1% year over year and 2% sequentially. Patterning revenues jumped 61% year over year and 18% sequentially to $728 million, representing 20% of the top line.Services revenues advanced 17% year over year and 6% sequentially to $820 million, and accounted for 22% of revenues. Management noted that customers are running tools at high utilization, while the growing installed base and contract-heavy service model support visibility. About 80% of service revenues are contract-based. Foundry and logic represented 79% of Semiconductor Process Control systems revenues to semiconductor customers. Memory accounted for the remaining 21%, reflecting demand for high-bandwidth memory and increasingly complex DRAM manufacturing processes.Geographically, Taiwan generated 31% of total revenues, followed by China at 26% and North America at 18%. Korea contributed 10%, Japan 6%, Europe 5% and the Rest of Asia 4%. The non-GAAP gross margin was 62.4%, at the upper end of guidance. A favorable service mix and manufacturing scale offset higher memory component costs and tariff pressures. Non-GAAP operating margin reached 43.7%, while incremental operating margin was 59%.Non-GAAP operating expenses totaled $682 million, including $399 million in research and development (up 13% year over year) and $291.5 million in selling, general and administrative expenses (up 11% year over year). KLAC ended the quarter with $4.90 billion in cash, cash equivalents and marketable securities and $5.89 billion in debt.Cash flow from operations was $906 million, while free cash flow totaled $817 million. The company returned $876 million to shareholders during the quarter, comprising $571 million in share repurchases and $305 million in dividends.Over the past 12 months, capital returns totaled $3.3 billion, while the free cash flow margin was 28%. For the first quarter of fiscal 2027, KLA expects revenues of $4 billion (plus or minus $200 million). Non-GAAP diluted earnings are projected at $1.16 per share (plus or minus 10 cents), while non-GAAP gross margin is forecast at 62.5% (plus or minus 1 percentage point).Foundry/logic is expected to account for about 73% of Semiconductor Process Control systems revenues to semiconductor customers, with memory at roughly 27%. Within memory, DRAM is projected at about 90% and NAND at 10%. Non-GAAP operating expenses are anticipated to be approximately $690 million.KLA expects second-half calendar 2026 revenues to rise about 20% from the first half as supply capacity improves. Management also raised its calendar 2026 wafer fabrication equipment market outlook, including advanced packaging, to the low-$150 billion range and expects significant growth to continue in calendar 2027. Since the earnings release, investors have witnessed a upward trend in estimates revision. At this time, KLA has a subpar Growth Score of D, a score with the same score on the momentum front. Following the exact same course, the stock has a score of D on the value side, putting it in the bottom 40% for value investors. Overall, the stock has an aggregate VGM Score of F. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. It comes with little surprise KLA has a Zacks Rank #2 (Buy). We expect an above average return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Get insights on thousands of stocks from the global community of over 7 million individual investors at Simply Wall St. KLA stock has delivered a very large 5 year return, yet the latest valuation checks suggest the shares now lean expensive rather than clear value. After that kind of run, investors are weighing strong historical gains against a low overall value score. KLA has returned approximately 463.3% over the past 5 years, which raises the bar for what future performance would need to justify the current share price. Expectations for ongoing demand in KLA's core semiconductor equipment markets can support optimism, while any slowdown in orders or pressure on customer capital spending may challenge the current valuation. KLA scores 0 out of 6 valuation checks on Simply Wall St, which points to a stock that does not screen as a bargain on the broader measures of value, as shown here. The issue now is whether KLA's current share price still offers an attractive entry point after such a strong multi year run and a set of valuation checks that lean expensive. KLA delivered 112.6% returns over the last year. See how this stacks up to the rest of the Semiconductor industry. The P/E ratio suits KLA because earnings are a key anchor for a mature, profitable semiconductor equipment business. Right now KLA trades at about 49.8x earnings, which is slightly above the Semiconductor industry average of 46.0x and very close to the peer group average of 48.3x. On simple comparisons, the stock sits at a modest premium to the broader industry. A more tailored fair P/E ratio for KLA, which factors in its size, margins, industry position and risk profile, sits lower at about 42.0x. That is a clear gap to the current market multiple, which indicates that investors are paying extra for KLA relative to what this model implies. For anyone already holding the stock, it is a signal to check whether personal expectations for the business still comfortably support that higher earnings multiple. On this earnings multiple, KLA stock currently screens as overvalued compared with the level suggested by the fair P/E benchmark. See what the numbers say about this price — find out in our valuation breakdown. Simply Wall St Narratives pick up where this valuation puzzle for KLA leaves off. They spell out, in concrete terms, what growth, margins and earnings path would need to hold for KLA's stock to be worth materially more or less than today, and each one presents fair value as a thesis about the business that you can track over time rather than a single static number. These sit on Simply Wall St's Community page and give you structured scenarios to test against your own view. Community views on KLA are sharply split, with one camp seeing a long AI driven runway and the other focused on geopolitical and valuation risks. Bull case: 21% undervalued Read the full Bull Case to see why KLA could be undervalued Bear case: 12% overvalued Read the full Bear Case to see why KLA could be overvalued Do you think there's more to the story for KLA? Head over to our Community to see what others are saying! KLA now screens as overvalued on earnings, with the current P/E sitting above the tailored fair multiple implied by its own fundamentals. That gap reflects a market that is already pricing in a constructive scenario for demand, margins and execution. For you as an investor, the key question is whether KLA can sustain the kind of earnings strength that keeps this higher multiple intact, or whether any wobble in semiconductor spending or geopolitics leads to a reset in expectations. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KLAC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

OSI Systems OSIS reported fourth-quarter fiscal 2026 adjusted earnings of $3.78 per share, up 16.7% year over year and surpassing the Zacks Consensus Estimate by 0.53%. Revenues fell 4.1% to $484.06 million and missed the consensus mark by 8.38%. About $50 million of planned Security deliveries shifted beyond fiscal year-end because of Middle East conflict-related delays and site access constraints. Backlog still ended at a record $1.90 billion. Security revenues declined 7.4% year over year to $339.73 million. The decrease reflected delayed Middle East deliveries and a difficult comparison with Mexico program revenues. Management said the fiscal fourth quarter included about a $20 million year-over-year revenue headwind from the Mexico security contracts. The underlying service picture was firmer. Excluding prior-year installation revenues tied to Mexico contracts, Security service revenues increased 9% year over year. Management stressed that the delayed Middle East deliveries were deferred rather than cancelled, while related orders remained in backlog with revised schedules. OSI Systems, Inc. price-consensus-eps-surprise-chart | OSI Systems, Inc. Quote Since the end of fiscal 2026 on June 30, 2026, U.S. Customs and Border Protection (CBP) awarded OSIS two five-year IDIQ contracts. One carries a ceiling of about $200 million for relocatable passenger vehicle inspection systems, while the other has an approximately $85 million ceiling for van-mounted mobile X-ray inspection systems. OSIS has already received delivery orders, including a roughly $21 million task order.Radio-frequency programs also remain an important growth avenue. During fiscal 2026, OSIS secured an undefinitized contract action with a not-to-exceed value of about $235 million for a homeland defense over-the-horizon radar transmit subsystem. Management said customer engagement across the RF portfolio is at its highest level to date. Optoelectronics and Manufacturing revenues rose 4.6% year over year to $117.81 million. Adjusted operating margin improved to 14.7% from 13.6%, aided by scale benefits and a more favorable revenue mix. Management expects the segment to pair revenue growth with further operating-margin expansion in fiscal 2027.Healthcare revenues increased 4.8% year over year to $44.75 million. Its adjusted operating margin climbed to 10.0% from 0.9% a year earlier, reflecting operating leverage and improvements implemented during the year. The division continues to focus on installed-base expansion and next-generation patient-monitoring products. Gross profit totaled $167.95 million compared with $168.24 million in the prior-year quarter. Gross margin expanded 140 basis points year over year to 34.7%, as a more favorable product sales mix more than offset the prior-year benefit from higher Mexico-related installation service revenues. Operating expenses declined 1.2% year over year to $94.07 million. Selling, general and administrative expenses fell 6.6% year over year to $69.75 million, representing 14.4% of revenues, down from 14.8% a year ago. R&D expenses increased to $19.50 million, or 4.0% of revenues, from $18.84 million, or 3.7%, as OSIS continued investing in innovation. Non-GAAP operating margin reached 17.7%, up 200 basis points from 15.7% in the prior-year quarter. Security, Optoelectronics and Manufacturing, and Healthcare all posted year-over-year adjusted operating margin improvement, with margins rising 40, 110 and 910 basis points, respectively. As of June 30, 2026, cash and cash equivalents were $359.83 million, up from $345.24 million as of March 31, 2026. As of June 30, 2026, the company had about $998.52 million of long-term debt up from $463.50 million a year earlier.Net cash provided by operating activities increased to $182.11 million in the fourth quarter of fiscal 2026 from $0.56 million in the year-ago period.a OSI Systems repurchased 564,880 shares for $123.6 million during the quarter. For fiscal 2027, OSIS expects revenues to be in the range of $1.875 billion to $1.930 billion, implying growth of 5.0% to 8.1%. Adjusted earnings are projected at $11.13 to $11.49 per share, representing growth of 7.5% to 11.0%.Management expects growth to be strongest in the second half, reflecting conservative assumptions for Middle East deliveries and limited near-term contributions from newer U.S. security awards. OSIS expects strong double-digit growth in service revenues, while larger contributions from recent CBP programs are anticipated in fiscal 2028 and beyond. Currently, OSI Systems carries a Zacks Rank #2 (Buy). NVIDIA NVDA, KLA KLAC and Synopsys SNPS are other stocks worth considering in the broader Zacks Computer and Technology sector, each carrying a Zacks Rank of 2 at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The long-term earnings growth rates for NVIDIA, KLA and Synopsys are pegged at 104.76%, 15.74% and 17.23%, respectively. Shares of NVIDIA have appreciated 8.5%, while Synopsys and KLA shares have declined 10.7% and 38.4%, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report OSI Systems, Inc. (OSIS) : Free Stock Analysis Report NVIDIA Corporation (NVDA) : Free Stock Analysis Report KLA Corporation (KLAC) : Free Stock Analysis Report Synopsys, Inc. (SNPS) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Gotham poured $2.65B into SPY and grew its HUM stake 65-fold, pivoting hard from single-name stock-picking toward defensive market beta. General Mills' 4.4x add targets a trough valuation of 13x forward earnings and a 6% yield, as consumer sentiment sits at recessionary levels. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and KLA didn't make the cut. Grab the names FREE today. Joel Greenblatt's Gotham Asset Management disclosed a defensive tilt in its Q2 2026 13F, filed in mid-August, headlined by a $2.65 billion add to the SPDR S&P 500 ETF and outsized conviction buys in managed care, packaged foods, and Manhattan office real estate. For a quant shop built on the "magic formula" framework, the shift toward index beta and staples is the tell. Greenblatt appears to be dialing down single-name risk and buying umbrellas. The centerpiece move: SPDR S&P 500 ETF Trust (NYSEARCA:SPY) now anchors roughly 20% of the 1,791-position book. That is a striking allocation for a firm known for concentrated value screens. With SPY trading at $768.51 and up 13.31% year to date, the add functions as a hedge against factor drift while the fund reshuffles hundreds of smaller positions. Pair that with a new ~$157 million short-duration Treasury bill position, and the message is clear: dry powder and market beta over stock-picking alpha. The most aggressive individual add was Humana (NYSE:HUM), where Gotham grew its share count roughly 65-fold. The thesis is visible in the numbers. Humana posted Q2 revenue growth of 26.2% year over year, individual Medicare Advantage membership climbed meaningfully year over year, and CEO Jim Rechtin reiterated the path to a "sustainable pre-tax margin of at least 3% in 2028." The stock is up 51.18% year to date, and analysts carry a $416.43 target. Healthcare spending grew from $3,537.7B in June 2025 to $3,741.0B in June 2026, a textbook defensive tailwind. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and KLA didn't make the cut. Grab the names FREE today. General Mills (NYSE:GIS) saw a 4.4x share increase. This is a contrarian value bet: the stock is down 14.37% year to date, trades at a forward P/E of 13, and yields 6.22%. With consumer sentiment at recessionary levels of 49.5, staples exposure at trough multiples fits the playbook. Vornado Realty Trust (NYSE:VNO) got a 3.2x add, a bet on the Manhattan office recovery. Vornado's NY office occupancy climbed to 92.2%, and Chairman Steven Roth noted "Office leasing volume in Manhattan is at its highest level in 25 years." The outlier is KLA Corporation (NASDAQ:KLAC), up 8.5x. Semiconductor capital equipment is cyclical, so this looks less defensive and more like a valuation call on an AI infrastructure winner posting 42.5% operating margins and 87.5% return on equity. The defensive skeleton makes sense. Sentiment is depressed, the VIX sits at 14.25 (complacency territory), and PCE growth is decelerating. Humana offers a clear operational turnaround with a hard 2028 margin target. General Mills offers yield and a trough valuation. Vornado offers real occupancy improvement at a 23% NAV discount. The SPY position is a hedge, not a thesis. For a retirement-focused investor, the framework is instructive: pairing a market beta anchor with defensive cash flow names, holding dry powder in T-bills, and treating concentrated cyclicals like KLAC as satellite positions. Among the four conviction adds, HUM stands out where the setup, valuation, and demographic tailwind align most cleanly. Act now: the analyst who called NVIDIA in 2010 just named his top 10 AI stocks — and KLA didn't make the cut. Grab the names FREE today. Contact [email protected] for any questions or corrections.

KLA Corporation recently declared a quarterly cash dividend of US$0.23 per share, payable on September 1, 2026, to shareholders of record as of August 17, 2026, alongside reporting higher quarterly and full-year revenue and earnings through June 30, 2026, and issuing guidance for the September 2026 quarter. These results and guidance arrive as semiconductor equipment demand is being reinforced by large AI chip manufacturing projects like Tesla and SpaceX’s Terafab complex and by industry analysts’ more optimistic wafer fab equipment spending forecasts. With KLA’s latest earnings guidance pointing to higher expected revenue and profitability, we’ll examine how this shapes its AI-driven investment narrative. Uncover the next big thing with 20 elite penny stocks that balance risk and reward. To own KLA, you need to believe that AI, high bandwidth memory, and advanced packaging will keep driving demand for process control tools, even as China headwinds, tariff uncertainty, and more volatile order patterns weigh on visibility. The latest earnings beat and stronger September-quarter guidance support the near term AI equipment demand catalyst, while the biggest current risk remains concentrated exposure to leading edge customers whose capex plans could quickly shift. The most relevant update here is KLA’s guidance for the September 2026 quarter, calling for about US$4.0 billion in revenue and a GAAP gross margin near 61.6%. This sits directly in the slipstream of AI led wafer fab equipment spending and high profile projects like Terafab, and it sharpens the focus on whether KLA can sustain high profitability as competition intensifies and China, tariff, and export control risks continue to build. Yet beneath the optimism, investors should be aware that worsening tariffs and export controls could still... Read the full narrative on KLA (it's free!) KLA's narrative projects $21.3 billion revenue and $8.8 billion earnings by 2029. Uncover how KLA's forecasts yield a $232.43 fair value, a 21% upside to its current price. Some of the lowest estimate analysts were already cautious, assuming roughly US$19.2 billion of revenue and US$7.2 billion of earnings by 2029, which is a far more pessimistic take than the consensus and may look different once this new AI driven demand and guidance are fully reflected. Explore 5 other fair value estimates on KLA - why the stock might be worth 47% less than the current price! Don't just follow the ticker - dig into the data and build a conviction that's truly your own. A great starting point for your KLA research is our analysis highlighting 2 key rewards and 2 important warning signs that could impact your investment decision. Our free KLA research report provides a comprehensive fundamental analysis summarized in a single visual - the Snowflake - making it easy to evaluate KLA's overall financial health at a glance. Our daily scans reveal stocks with breakout potential. Don't miss this chance: The future of work is here. Discover the 37 top robotics and automation stocks leading the charge in AI-driven automation and industrial transformation. We've uncovered the 9 dividend fortresses yielding 5%+ that don't just survive market storms, but thrive in them. Invest in the nuclear renaissance through our list of 89 elite nuclear energy infrastructure plays powering the global AI revolution. This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include KLAC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

Applied Materials AMAT is scheduled to report third-quarter fiscal 2026 results on Aug. 13. For the fiscal third quarter, AMAT expects revenues to be $8.95 billion (+/- $500 million). The Zacks Consensus Estimate for revenues is pegged at $9 billion, suggesting an increase of 23.3% from the year-ago quarter. Applied Materials projects non-GAAP earnings per share of $3.36 (+/- $0.20) per share. The Zacks Consensus Estimate for earnings is pegged at $3.36 per share, indicating an increase of 35.5% from the year-ago quarter’s reported figure. The figure has been revised upward in the past 30 days. Image Source: Zacks Investment Research AMAT has an impressive earnings surprise history. AMAT beat the Zacks Consensus Estimate in each of the past four quarters, with an average earnings surprise of 6%. Applied Materials, Inc. price-eps-surprise | Applied Materials, Inc. Quote Our proven model predicts an earnings beat for AMAT this earnings season. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here. Earnings ESP: Earnings ESP, which represents the difference between the Most Accurate Estimate ($3.41 per share) and the Zacks Consensus Estimate ($3.36 per share), is +1.52%. Zacks Rank: AMAT carries a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here. Applied Materials’ third quarter of fiscal 2026 results are expected to benefit from the acceleration of AI infrastructure spending and the growing complexity of semiconductor manufacturing. The company’s exposure to leading-edge foundry-logic, DRAM and advanced packaging is likely to have remained a key driver of momentum in the to-be-reported quarter. Demand for wafer fabrication equipment is expected to have remained strong as cloud service providers continue to expand AI infrastructure and chipmakers increase capacity. Applied Materials is also seeing customers find ways to expand cleanroom capacity, creating opportunities for equipment deliveries. This trend is likely to have supported growth in the third quarter. The transition toward gate-all-around architectures should have remained another important catalyst. Applied Materials’ broad portfolio of deposition, etch, inspection and materials engineering solutions positions it well as chipmakers adopt increasingly complex transistor structures. Its recently launched GAA products could further strengthen its position as these technologies move toward broader adoption. DRAM is also likely to remain a strong contributor as AI workloads drive demand for memory and customers invest in architectures. At the same time, advanced packaging is gaining importance as chipmakers increasingly rely on 3D stacking and high-bandwidth memory to improve AI system performance and efficiency. Applied Materials’ positioning in these areas should support momentum. Applied Global Services is expected to have benefited from higher fab utilization, a growing installed base and demand for advanced services that improve production, yield and efficiency. Overall, the third quarter should reflect strength across Applied Materials’ AI-related markets, with customer visibility and technology transitions supporting the growth trajectory. Applied Materials shares have gained 109.8% year to date, outperforming the Zacks Electronics – Semiconductors industry’s growth of 32.8%. Image Source: Zacks Investment Research Let us now look at the value Applied Materials offers to its investors at current levels. AMAT is currently trading at a premium with a forward 12-month price-to-sales (P/S) of 10.54X compared with the industry’s 5.35X. A Value score of D substantiates its premium price. Image Source: Zacks Investment Research Applied Materials is seeing AI adoption broaden and diversify, which is pushing wafer fab equipment spending toward leading-edge foundry-logic, DRAM and advanced packaging. Management expects these three areas to drive more than 80% of year-on-year total WFE growth in calendar 2026, with a similar profile in 2027. The company also expects its semiconductor equipment business to grow more than 30% in calendar 2026 as customers expand cleanroom capacity and accelerate equipment pull-ins. AI computing is increasing DRAM intensity, and management noted that leading-edge logic and DRAM fabs are running at full capacity. In the second quarter of fiscal 2026, DRAM revenues within Semiconductor Systems were $1.7 billion, up 18% year over year, with management pointing to strength in DRAM wiring, patterning and peripheral logic steps. The company also expects DRAM and advanced packaging to be central drivers of WFE growth in 2026 and 2027. Applied Materials commands a broad portfolio of offerings and hence competes with KLA Corporation KLAC, Lam Research LRCX and Camtek CAMT in the WFE and testing market. Applied Materials and KLA Corporation offer similar solutions, such as Wafer Inspection, Yield Enhancement and Process Control inspection systems, while Camtek stands at the forefront of semiconductor inspection and metrology solutions. Camtek is focused on high-performance computing modules, advanced packaging and silicon carbide technologies. Lam Research develops Atomic Layer Deposition tools like AT200M, AT410 and AT650P that are similar to the devices made by Applied Materials. While Camtek, Lam Research and KLA Corporation overlap with Applied Materials, AMAT’s broad product portfolio enables it to seamlessly integrate its equipment across multiple processes. Applied Materials’ integration of equipment across multiple processes reduces reliance on any single technology cycle and enables it to price its product stack better to protect margins. Moreover, AMAT’s DRAM offerings are gaining traction as customers are aggressively investing in 6F² nodes supported by rising demand for high bandwidth memory DRAM, driven by AI workloads. Overall, Applied Materials’ exposure to AI-driven semiconductor investment, rising process complexity and advanced packaging provides a strong foundation for sustained growth. Its leadership across leading-edge logic, DRAM and packaging, combined with expanding services and improving customer visibility, should support durable demand, margin expansion and stronger execution through the current cycle. Given these dynamics, it is safe to accumulate this stock at present. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Applied Materials, Inc. (AMAT) : Free Stock Analysis Report KLA Corporation (KLAC) : Free Stock Analysis Report Lam Research Corporation (LRCX) : Free Stock Analysis Report Camtek Ltd. (CAMT) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

KLA Corporation KLAC published its fourth-quarter fiscal 2026 results, with management highlighting accelerating AI infrastructure investment, stronger semiconductor demand and expanding process control opportunities across advanced manufacturing. The earnings call focused on improving visibility into customer spending, capacity expansion plans and long-term growth opportunities tied to advanced logic, memory and packaging technologies. Executives also addressed margin trends, supply constraints and industry outlook during analyst discussions. KLA reported fiscal fourth-quarter revenues of $3.66 billion, surpassing the Zacks Consensus Estimate of $3.61 billion. Non-GAAP EPS came in at $1.05, topping the Zacks Consensus Estimate of $1 by 5%. KLA Corporation price-consensus-eps-surprise-chart | KLA Corporation Quote CEO Richard Wallace said KLA’s fiscal fourth-quarter performance reflected accelerating investment tied to AI infrastructure, leading-edge foundry and logic demand, and increasing process control intensity across memory and advanced packaging. He highlighted the growing complexity of semiconductor designs as a key demand driver. Wallace noted that AI infrastructure expansion requires more advanced logic, memory and packaging technologies, creating additional opportunities for KLA’s systems and services. He said customer engagement strengthened after the company’s investor event, improving visibility into future demand. KLA management increased its wafer equipment market outlook for calendar 2026 to the low $150 billion range, up from its prior expectation of more than $140 billion. CFO Bren Higgins said customer demand has strengthened across leading-edge logic, memory and advanced packaging. Higgins said KLA expects second-half calendar 2026 growth over the first half to be approximately 20%, supported by improving supply availability. He added that the company is positioned for continued sequential growth into calendar 2027. KLA also pointed to expanding backlog visibility. Higgins said backlog was expected to reach about $12.5 billion, with customer order activity supporting the outlook for future growth. KLA highlighted advanced packaging as an important growth area connected to AI infrastructure. Management raised its expectation for advanced packaging process control systems revenues to approximately $1.1 billion in calendar 2026, representing more than 70% year-over-year growth. Wallace said adoption of systems originally designed for front-end semiconductor manufacturing has accelerated in advanced packaging applications. He noted that technologies such as hybrid bonding are creating additional demand for process control capabilities. KLA also reported strength in businesses acquired through Orbotech. Management said specialty process, PCB and component inspection businesses are expected to grow more than 25% in calendar 2026 as high-performance computing drives demand. Fiscal fourth-quarter gross margin was 62.4%, supported by favorable service mix and manufacturing scale. However, memory pricing pressures and higher input costs remained headwinds. KLA expects pricing actions and new product introductions to support gross margin performance over time. The company remains focused on maintaining its long-term incremental margin model. KLA’s fiscal fourth-quarter operating margin was 43.7%, while operating expenses totaled $682 million. Research and development spending was $399 million, reflecting continued investment in future products. During Q&A, a JPMorgan analyst asked about the implications of higher wafer equipment spending and the company’s growth outlook. Higgins said the industry setup remains favorable, with broader logic investment, high-bandwidth memory demand and new fabs supporting future opportunities. A Bank of America analyst questioned competitive pressure in China. Wallace said process control remains difficult to replicate because of technology integration, customer collaboration and KLA’s global applications engineering capabilities. Management also discussed supply preparation. Higgins said the company is working with suppliers on long-term capacity planning, with some components requiring 12 to 24 months to add capacity. KLA entered the next phase of growth focused on supporting customer demand, expanding manufacturing capacity and investing in innovation. Management emphasized that AI-related semiconductor complexity is increasing the strategic importance of process control. Executives also highlighted capital allocation discipline. The company generated $817 million in free cash flow during the quarter and returned $876 million to its shareholders through dividends and share repurchases. KLA’s first-quarter fiscal 2027 guidance calls for revenues of $4.0 billion, plus or minus $200 million, with non-GAAP EPS of $1.16, plus or minus $0.10. KLA currently carries Zacks Rank #2 (Buy), indicating a favorable position within the Zacks Rank system based on earnings estimate revisions. The Zacks Rank can change after earnings as analysts update estimates and expectations. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. The stock has a Value Score of F, Growth Score of D, Momentum Score of B and VGM Score of D. Zacks Style Scores are designed to complement the Zacks Rank by evaluating value, growth and momentum characteristics, with stronger scores representing more favorable attributes. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

KLA Corporation KLAC reported fiscal fourth-quarter 2026 non-GAAP earnings of $1.05 per share, up 11.7% year over year, and beat the Zacks Consensus Estimate by 5%.Revenues increased 15.2% year over year to $3.66 billion and beat the consensus mark by 1.32%. Results benefited from AI infrastructure investment, leading-edge foundry/logic demand and rising process control intensity. Advanced packaging process control revenues are now expected to reach about $1.1 billion in calendar 2026. KLA Corporation price-consensus-eps-surprise-chart | KLA Corporation Quote Semiconductor Process Control revenues were $3.26 billion, accounting for 89% of revenues. The segment grew 13% year over year and 6% sequentially, supported by demand for inspection, metrology and related services across advanced logic, memory and packaging applications.Specialty Semiconductor Process revenues rose 13% year over year to $160 million but declined 3% sequentially. PCB and Component Inspection revenues surged 56.5% year over year and 44% sequentially to $241.1 million, reflecting stronger demand tied to high-performance computing packages and integration. Wafer Inspection remained the largest product category, generating $1.78 billion, or 49% of revenues. Sales increased 1% year over year and 2% sequentially. Patterning revenues jumped 61% year over year and 18% sequentially to $728 million, representing 20% of the top line.Services revenues advanced 17% year over year and 6% sequentially to $820 million, and accounted for 22% of revenues. Management noted that customers are running tools at high utilization, while the growing installed base and contract-heavy service model support visibility. About 80% of service revenues are contract-based. Foundry and logic represented 79% of Semiconductor Process Control systems revenues to semiconductor customers. Memory accounted for the remaining 21%, reflecting demand for high-bandwidth memory and increasingly complex DRAM manufacturing processes.Geographically, Taiwan generated 31% of total revenues, followed by China at 26% and North America at 18%. Korea contributed 10%, Japan 6%, Europe 5% and the Rest of Asia 4%. The non-GAAP gross margin was 62.4%, at the upper end of guidance. A favorable service mix and manufacturing scale offset higher memory component costs and tariff pressures. Non-GAAP operating margin reached 43.7%, while incremental operating margin was 59%.Non-GAAP operating expenses totaled $682 million, including $399 million in research and development (up 13% year over year) and $291.5 million in selling, general and administrative expenses (up 11% year over year). KLAC ended the quarter with $4.90 billion in cash, cash equivalents and marketable securities and $5.89 billion in debt.Cash flow from operations was $906 million, while free cash flow totaled $817 million. The company returned $876 million to shareholders during the quarter, comprising $571 million in share repurchases and $305 million in dividends.Over the past 12 months, capital returns totaled $3.3 billion, while the free cash flow margin was 28%. For the first quarter of fiscal 2027, KLA expects revenues of $4 billion (plus or minus $200 million). Non-GAAP diluted earnings are projected at $1.16 per share (plus or minus 10 cents), while non-GAAP gross margin is forecast at 62.5% (plus or minus 1 percentage point).Foundry/logic is expected to account for about 73% of Semiconductor Process Control systems revenues to semiconductor customers, with memory at roughly 27%. Within memory, DRAM is projected at about 90% and NAND at 10%. Non-GAAP operating expenses are anticipated to be approximately $690 million.KLA expects second-half calendar 2026 revenues to rise about 20% from the first half as supply capacity improves. Management also raised its calendar 2026 wafer fabrication equipment market outlook, including advanced packaging, to the low-$150 billion range and expects significant growth to continue in calendar 2027. KLA currently has a Zacks Rank #2 (Buy).Lumentum LITE, Arrow Electronics ARW and HubSpot HUBS are some better-ranked stocks in the broader Zacks Computer and Technology sector. Each of the three stocks sports a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Lumentum, Arrow Electronics and HubSpot are expected to report their quarterly results on Aug. 11, Aug. 6 and Aug. 5, respectively. Shares of HubSpot have dropped 40.7%, while Arrow Electronics and Lumentum have jumped 91.8% and 76.8%, year to date, respectively. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report KLA Corporation (KLAC) : Free Stock Analysis Report Arrow Electronics, Inc. (ARW) : Free Stock Analysis Report HubSpot, Inc. (HUBS) : Free Stock Analysis Report Lumentum Holdings Inc. (LITE) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research