Added to YB: 2026-05-07
Pitch date: 2026-05-04
KLAC [neutral]
KLA Corporation
+4.07%
current return
Author Info
No bio for this author
Company Info
KLA Corporation, together with its subsidiaries, designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries worldwide.
Market Cap
$226.4B
Pitch Price
$1.7K
Price Target
N/A
Dividend
0.53%
EV/EBITDA
38.51
P/E
49.06
EV/Sales
17.37
Sector
Semiconductors and Semiconductor Equipment
Category
growth
KLA 3QFY26 Earnings: The Complexity Tax Gets More Real
KLAC (earnings): Q3 beat on rev/EPS/GM, mgmt broke precedent to guide 2027 growth, adv packaging rev est nearly doubled, stock fell 5%+. Growing 11% vs Lam's 24% as inspector arrives after builder in fab buildout sequence. 62.2% GM but June guides 61.75% on DRAM costs (100bps), tariffs (50-100bps), mix headwinds. 58% process-control share (+360bps since 2021), services +16% YoY. Memory mix halved 38%→18% in 1Q. Trades 37x P/E (highest in group) at lowest growth rate. Bull case needs GM above 62.5%, narrowing growth gap vs Lam, memory mix recovery >25% by mid-2027, FCF conversion >80%. Prob-weighted fair value ~$1,780 (current price). Structural moat widening but timing lag between thesis & financials = fairly priced for base case.
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