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Valued at a market cap of $201.9 billion, KLA Corporation (KLAC) designs, manufactures, and markets process control, process-enabling, and yield management solutions for the semiconductor and related electronics industries. The Milpitas, California-based company is expected to announce its fiscal Q3 earnings for 2026 in the near future.
Before this event, analysts expect this tech company to report a profit of $9.16 per share, up 8.9% from $8.41 per share in the year-ago quarter. The company has topped Wall Street’s bottom-line estimates in each of the last four quarters. Its earnings of $8.85 per share in the previous quarter outpaced the forecasted figure by a slight margin.
For the current fiscal year, ending in June, analysts expect KLAC to report a profit of $36.62 per share, up 10% from $33.28 per share in fiscal 2025. Furthermore, its EPS is expected to grow 29.3% year-over-year to $47.35 in fiscal 2027.
KLAC has rallied 156.2% over the past 52 weeks, significantly outperforming both the S&P 500 Index's ($SPX) 30.7% return and the State Street Technology Select Sector SPDR ETF’s (XLK) 49.8% uptick over the same time period.
On Apr. 1, shares of KLAC rose 3.2% after the company unveiled a new $7 billion share repurchase authorization. When combined with the remaining capacity from its previous program, the total amount available for buybacks climbed to around $11 billion. That represents roughly 5.8% of the company’s market value, making it a notably large capital return plan. Moves of this size are often viewed as a sign of confidence from management, indicating they see strong fundamentals ahead and consider the stock attractively valued.
Wall Street analysts are moderately optimistic about KLAC’s stock, with a "Moderate Buy" rating overall. Among 28 analysts covering the stock, 15 recommend "Strong Buy," three advise "Moderate Buy,” and 10 suggest "Hold." The mean price target for KLAC is $1,726.31, indicating an 11.5% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
