KLA Corp Reports Strong Q2 Earnings but Stock Drops 11.5%
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Jan 28 2026
0mins
Should l Buy KLAC?
Source: Fool
KLA Corp's stock fell 11.5% after reporting Q2 earnings, hitting a 20-day low.
Despite reporting adjusted earnings of $8.85 per share and revenue of $3.30 billion, KLA's stock decline reflects investor concerns over longer equipment delivery times and tariff expenses impacting profitability. The company also provided a conservative guidance for Q3, projecting adjusted EPS between $8.30 and $9.86, which is below analyst expectations.
The market reaction indicates that investors are taking profits after a significant 140% increase in KLA's stock over the past year, suggesting that the current decline may be more about profit-taking than a negative outlook on the company's fundamentals.
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Analyst Views on KLAC
Wall Street analysts forecast KLAC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KLAC is 1393 USD with a low forecast of 1214 USD and a high forecast of 1750 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
20 Analyst Rating
14 Buy
6 Hold
0 Sell
Moderate Buy
Current: 1331.030
Low
1214
Averages
1393
High
1750
Current: 1331.030
Low
1214
Averages
1393
High
1750
About KLAC
KLA Corporation is a supplier of process control and yield management solutions and services for the semiconductor and related electronics industries. The Company offers a portfolio of inspection and metrology products, and related services, software and other offerings, supports research and development (R&D) and manufacturing of integrated circuits (ICs), wafers and reticles. Its segments include Semiconductor Process Control, Specialty Semiconductor Process, and PCB and Component Inspection. Semiconductor Process Control segment provides comprehensive portfolio of inspection, metrology and software products, as well as related services, helping IC, wafer, reticle/mask and chemical/materials manufacturers achieve target yields throughout the entire fabrication process, from R&D to final volume production. The Specialty Semiconductor Process segment develops and sells advanced vacuum deposition and etch process tools, which are used by a range of specialty semiconductor customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Dividend Payment Schedule: The dividend is payable on March 3, with a record date of February 17 and an ex-dividend date also on February 17, ensuring shareholders receive their returns promptly, thereby strengthening the relationship between the company and its investors.
- Future Outlook: Despite concerns in the equipment market, analysts maintain a bullish stance on KLA, projecting a mid- to high-teens revenue increase in advanced packaging for 2026 driven by AI demand, highlighting the company's potential in technological innovation and market demand.
- Market Reaction: Although analysts are optimistic about KLA's prospects, the stock has fallen amid worries about the semiconductor equipment market, reflecting uncertainty about future demand that may influence investor decisions.
See More
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- Dividend Declaration: KLA Corporation's Board of Directors has declared a quarterly cash dividend of $1.90 per share, payable on March 3, 2026, to shareholders of record as of February 17, 2026, reflecting the company's commitment to returning value to its shareholders.
- Shareholder Return Strategy: This dividend announcement underscores KLA's strong performance in maintaining cash flow and profitability, aimed at boosting investor confidence and attracting more long-term investors.
- Industry Leadership: As a leading provider of equipment and services in the electronics industry, KLA continues to invest in innovation and technology development to meet global customer demands, further solidifying its market position.
- Transparency in Communication: KLA regularly publishes significant financial information through its investor relations website, ensuring that investors are kept informed of company developments, thereby enhancing market trust in its transparency.
See More
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