KLA (NASDAQ:KLAC) Releases Q1 2027 Earnings Guidance

KLA (NASDAQ:KLAC) updated its first quarter 2027 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 1.060-1.260 for the period, compared to the consensus earnings per share estimate of 1.130. The company issued revenue guidance of $3.8 billion-$4.2 billion, compared to the consensus revenue estimate of $3.9 billion.

KLA Stock Up 9.1%

Shares of NASDAQ KLAC traded up $15.47 during trading on Thursday, reaching $185.66. The company had a trading volume of 4,020,528 shares, compared to its average volume of 11,570,103. KLA has a 12-month low of $83.22 and a 12-month high of $307.37. The company has a quick ratio of 2.11, a current ratio of 3.03 and a debt-to-equity ratio of 1.01. The business’s 50-day moving average is $223.99 and its 200 day moving average is $181.22. The stock has a market cap of $242.52 billion, a PE ratio of 50.40, a P/E/G ratio of 1.81 and a beta of 1.41.

KLA (NASDAQ:KLAC) last announced its quarterly earnings data on Tuesday, July 28th. The semiconductor company reported $1.05 EPS for the quarter, beating the consensus estimate of $1.00 by $0.05. KLA had a net margin of 35.57% and a return on equity of 91.38%. The company had revenue of $3.66 billion for the quarter, compared to the consensus estimate of $3.61 billion. During the same period in the prior year, the firm posted $0.94 EPS. KLA’s revenue for the quarter was up 15.2% on a year-over-year basis. KLA has set its Q1 2027 guidance at 1.060-1.260 EPS. As a group, equities analysts forecast that KLA will post 5.06 earnings per share for the current fiscal year.

KLA Cuts Dividend

The company also recently declared a quarterly dividend, which was paid on Tuesday, June 2nd. Investors of record on Monday, May 18th were paid a dividend of $0.23 per share. The ex-dividend date of this dividend was Monday, May 18th. This represents a $0.92 dividend on an annualized basis and a yield of 0.5%. KLA’s dividend payout ratio is presently 26.06%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently issued reports on KLAC shares. Wolfe Research raised their target price on shares of KLA from $180.00 to $200.00 and gave the stock an “outperform” rating in a report on Friday, April 10th. Susquehanna set a $215.00 target price on shares of KLA and gave the stock a “neutral” rating in a report on Wednesday. Weiss Ratings lowered shares of KLA from a “buy (b)” rating to a “buy (b-)” rating in a report on Monday, May 4th. New Street Research lifted their price objective on shares of KLA from $146.00 to $177.00 and gave the company a “neutral” rating in a report on Wednesday, April 29th. Finally, Morgan Stanley reaffirmed an “overweight” rating and set a $253.00 target price on shares of KLA in a research report on Wednesday. Twenty research analysts have rated the stock with a Buy rating and ten have given a Hold rating to the company’s stock. According to data from MarketBeat.com, the company currently has a consensus rating of “Moderate Buy” and an average price target of $219.10.

Insiders Place Their Bets

In other KLA news, EVP Mary Beth Wilkinson sold 14,392 shares of KLA stock in a transaction dated Wednesday, July 1st. The stock was sold at an average price of $285.30, for a total transaction of $4,106,037.60. Following the completion of the sale, the executive vice president owned 53,367 shares of the company’s stock, valued at approximately $15,225,605.10. The trade was a 21.24% decrease in their position. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, CFO Bren D. Higgins sold 27,701 shares of the company’s stock in a transaction that occurred on Thursday, July 2nd. The shares were sold at an average price of $265.69, for a total value of $7,359,878.69. Following the completion of the sale, the chief financial officer owned 263,472 shares in the company, valued at approximately $70,001,875.68. This represents a 9.51% decrease in their position. The disclosure for this sale is available in the SEC filing. In the last quarter, insiders have sold 132,333 shares of company stock valued at $29,547,170. Insiders own 91.48% of the company’s stock.

More KLA News

Here are the key news stories impacting KLA this week:

• Positive Sentiment: KLA reported fiscal Q4 revenue of approximately $3.66 billion, up 15.2% year over year, and non-GAAP EPS of $1.05, beating consensus estimates. Management cited sustained AI infrastructure investment, foundry and logic demand, and growing process-control opportunities. KLAC Q4 Earnings Beat on AI Demand
• Positive Sentiment: The company projected fiscal Q1 2027 revenue of $3.8 billion to $4.2 billion and EPS of $1.06 to $1.26, with the ranges generally above or around Wall Street expectations. Analysts including JPMorgan, Needham, Citi and Cantor Fitzgerald maintained positive ratings, with price targets ranging from $238 to $325. KLA forecasts upbeat quarter on sustained AI investment
• Neutral Sentiment: Wolfe Research analyst Chris Caso argued that semiconductor oversupply is unlikely before 2028 because the industry lacks the physical infrastructure needed for a new oversupply cycle. The view supports the broader chip-equipment outlook, although it does not remove near-term concerns about market volatility and capital-spending trends. Top Chip Analyst: Semiconductor Oversupply Is Nearly Impossible Before 2028
• Negative Sentiment: Despite the earnings beat and raised outlook, investors viewed the guidance as a relatively narrow “beat and raise” because expectations were exceptionally high. Analysts flagged possible growth constraints, margin pressure and competition, prompting a sharp post-earnings sell-off. KLA’s elevated valuation—about 46 times earnings—amplified the reaction. KLA Stock Heads for Worst Month Since 1987
• Negative Sentiment: Broader risk-off trading also pressured KLAC. Semiconductor shares sold off amid a jump in oil prices tied to renewed U.S.-Iran tensions and uncertainty surrounding the Federal Reserve’s rate decision. Recent open-market insider activity showed sales by KLA’s CEO, CFO and chief accounting officer, adding a modest negative signal. Oil Spikes, Nasdaq 100 Sinks Before Fed

Institutional Investors Weigh In On KLA

Several hedge funds have recently bought and sold shares of the stock. Pinebridge Investments LLC purchased a new position in shares of KLA in the 4th quarter valued at about $32,812,000. Russell Investments Group Ltd. raised its stake in shares of KLA by 31.4% during the 4th quarter. Russell Investments Group Ltd. now owns 91,413 shares of the semiconductor company’s stock worth $111,910,000 after buying an additional 21,850 shares during the period. Captrust Financial Advisors lifted its position in shares of KLA by 237.8% during the 4th quarter. Captrust Financial Advisors now owns 17,055 shares of the semiconductor company’s stock valued at $20,723,000 after buying an additional 12,006 shares in the last quarter. Longbow Finance SA acquired a new stake in KLA in the 4th quarter valued at $6,105,000. Finally, Horizon Investments LLC increased its holdings in KLA by 30.1% in the 3rd quarter. Horizon Investments LLC now owns 10,981 shares of the semiconductor company’s stock worth $11,844,000 after acquiring an additional 2,540 shares in the last quarter. Hedge funds and other institutional investors own 86.65% of the company’s stock.

About KLA

KLA is a provider of process control and yield management solutions for the semiconductor and related microelectronics industries. The company designs and manufactures equipment, software and services used by chipmakers to analyze and control manufacturing processes, detect defects, measure critical dimensions and improve yield across wafer fabrication, photomask and packaging operations. KLA’s offerings are aimed at enabling production of advanced logic, memory, and specialty devices at progressively smaller technology nodes and more complex package structures.

Its product portfolio includes optical and e-beam inspection systems, metrology tools for critical dimension and film measurement, mask and reticle inspection platforms, as well as enterprise software and data analytics that aggregate process data and drive automated process control.