KLA (NASDAQ:KLAC) Announces Q2 2027 Earnings Guidance

Key Points

• KLA issued fiscal Q2 2027 guidance for adjusted EPS of $1.33–$1.55 and revenue of $4.5–$4.9 billion, with the revenue midpoint above the $4.5 billion consensus estimate.
• The company’s latest quarterly results exceeded expectations, with revenue rising 28.9% year over year to $4.14 billion and EPS of $1.22 versus the $1.18 analyst consensus.
• Analyst sentiment remains moderately bullish but mixed: KLA has a consensus “Moderate Buy” rating and a $219.35 price target, while several firms recently lowered their targets. Shares opened down 2.7% at $162.92.

KLA (NASDAQ:KLAC - Get Free Report) issued an update on its second quarter 2027 earnings guidance on Friday morning. The company provided EPS guidance of 1.330-1.550 for the period, compared to the consensus estimate of 1.360. The company issued revenue guidance of $4.5 billion-$4.9 billion, compared to the consensus revenue estimate of $4.5 billion.

KLA Trading Down 2.7%

Shares of KLAC stock opened at $162.92 on Friday. KLA has a 1-year low of $107.20 and a 1-year high of $307.37. The company has a debt-to-equity ratio of 0.93, a current ratio of 2.88 and a quick ratio of 2.03. The firm's 50-day simple moving average is $179.18 and its 200-day simple moving average is $181.70. The firm has a market cap of $212.61 billion, a P/E ratio of 40.31, a PEG ratio of 1.41 and a beta of 1.45.

KLA (NASDAQ:KLAC - Get Free Report) last released its quarterly earnings results on Wednesday, October 28th. The semiconductor company reported $1.22 earnings per share for the quarter, topping analysts' consensus estimates of $1.18 by $0.04. KLA had a return on equity of 91.73% and a net margin of 36.25%. The firm had revenue of $4.14 billion during the quarter, compared to analysts' expectations of $4.04 billion. During the same quarter in the prior year, the business earned $8.47 EPS. KLA's quarterly revenue was up 28.9% compared to the same quarter last year. As a group, equities analysts forecast that KLA will post 5.43 EPS for the current year.

KLA Increases Dividend

The firm also recently declared a quarterly dividend, which was paid on Tuesday, September 1st. Shareholders of record on Monday, August 17th were given a $0.23 dividend. This represents a $0.92 annualized dividend and a yield of 0.6%. This is a positive change from KLA's previous quarterly dividend of $0.23. The ex-dividend date was Monday, August 17th. KLA's dividend payout ratio (DPR) is presently 25.07%.

Wall Street Analyst Weigh In

Several analysts recently commented on the stock. UBS Group restated a "neutral" rating and set a $180.00 price target (down from $190.00) on shares of KLA in a report on Thursday. Sanford C. Bernstein reissued an "outperform" rating and set a $225.00 price objective on shares of KLA in a research report on Wednesday, July 29th. Wells Fargo & Company cut their price target on KLA from $245.00 to $210.00 and set an "overweight" rating for the company in a report on Thursday. Piper Sandler set a $425.00 price objective on KLA in a research note on Thursday. Finally, Zacks Research lowered shares of KLA from a "strong-buy" rating to a "hold" rating in a research report on Monday, September 28th. Nineteen equities research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the stock. Based on data from MarketBeat.com, the company has a consensus rating of "Moderate Buy" and a consensus price target of $219.35.

Insider Buying and Selling at KLA

In other KLA news, EVP MaryBeth Wilkinson sold 13,802 shares of the stock in a transaction dated Wednesday, August 5th. The stock was sold at an average price of $195.50, for a total value of $2,698,291.00. Following the completion of the transaction, the executive vice president directly owned 22,110 shares in the company, valued at approximately $4,322,505. This trade represents a 38.43% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, CEO Richard P. Wallace sold 87,568 shares of the company's stock in a transaction dated Tuesday, August 11th. The shares were sold at an average price of $198.95, for a total value of $17,421,653.60. Following the completion of the sale, the chief executive officer owned 778,944 shares in the company, valued at $154,970,908.80. This trade represents a 10.11% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. Insiders sold a total of 243,339 shares of company stock valued at $46,903,454 in the last three months. 79.39% of the stock is owned by insiders.

More KLA News

Here are the key news stories impacting KLA this week:

• Positive Sentiment: Quarterly results exceeded expectations. KLA reported fiscal 2027 first-quarter revenue of $4.14 billion, above the $4.04 billion consensus estimate. Non-GAAP EPS was $1.22 versus expectations of $1.18, while revenue increased 28.9% year over year. The company also generated $1.34 billion in free cash flow and returned $1.24 billion to shareholders. KLA Corporation Reports Fiscal 2027 First Quarter Results
• Positive Sentiment: Next-quarter guidance topped consensus. KLA forecast fiscal second-quarter revenue of $4.5 billion to $4.9 billion, implying a midpoint of $4.7 billion versus the $4.5 billion analyst consensus. Adjusted EPS guidance of $1.33 to $1.55 also brackets a consensus estimate of $1.36. KLA Expects Second-Quarter Revenue Range
• Positive Sentiment: AI-related demand remains the primary catalyst. Analysts cited rising wafer-inspection demand, margin expansion and the need for leading-edge fabs supporting AI chips. KLA expects the wafer-fabrication equipment market to exceed $200 billion in 2027, supporting a favorable multiyear outlook. KLA Forecasts Wafer Equipment Market Growth
• Neutral Sentiment: Analyst sentiment is mixed. JPMorgan raised its target to $240 and maintained an overweight rating, while Citigroup maintained a buy rating despite trimming its target to $275. These targets still imply substantial upside, but the differing revisions suggest expectations remain unsettled.
• Negative Sentiment: Several firms lowered price targets. Wells Fargo, Needham, Evercore ISI, Susquehanna, Cantor Fitzgerald and UBS reduced their targets following the results. UBS retained a hold rating, citing structural share-related headwinds, while Susquehanna also moved to neutral. These cuts may limit enthusiasm despite the strong operating outlook.

KLA Company Profile

KLA Corporation NASDAQ: KLAC develops process control, inspection and yield management solutions for the semiconductor and other advanced manufacturing industries. Its technologies help manufacturers identify defects, measure critical dimensions and monitor production processes to improve quality, reliability and manufacturing efficiency.

The company's product portfolio includes wafer and reticle inspection systems, metrology and measurement tools, defect review and classification systems, and software for analyzing manufacturing data.

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