Investment Rating - The report rates the industry as "Buy" [5] Core Insights - The demand for semiconductor equipment is increasing due to AI advancements, with leading companies like ASML and KLA reporting significant order growth. ASML's fourth-quarter orders reached €13.2 billion, nearly double market expectations, while KLA's revenue for Q2 2026 was $3.297 billion, a 7.2% increase year-over-year [5] - The humanoid robotics sector is rapidly advancing, with companies like Zhongqing and Zhiyuan making strides in space exploration, indicating a strong integration of robotics and aerospace industries [5] - The 2026 Beijing International Commercial Aerospace Exhibition highlights China's commitment to developing its commercial space industry, showcasing the latest advancements and policies to support satellite data utilization [5] Summary by Sections Industry Overview - The mechanical equipment sector saw a decline of 3.16% from January 26 to January 30, 2026, underperforming compared to the CSI 300 index, which increased by 0.08% [8] - The mechanical equipment sub-sector indices showed varied performance, with other automation equipment leading with a 2.20% increase [9] Semiconductor Equipment Industry - Semiconductor sales reached $75.28 billion in November 2025, reflecting a 3.53% month-over-month increase [77] - The Philadelphia Semiconductor Index rose to 8320.39 points, a weekly increase of 3.29% [81] Robotics and AI Infrastructure - Recommended stocks in humanoid robotics include Hengli Hydraulic, Changying Precision, and Zhaowei Electric, while AI infrastructure recommendations include Ice Wheel Environment and Hanzhong Precision [5] - The humanoid robotics sector is positioned to meet the demands of the aerospace industry, creating a beneficial cycle of technology validation and industry growth [5] Engineering Machinery - Recommended stocks in engineering machinery include Sany Heavy Industry, XCMG Machinery, and Zoomlion Heavy Industry [5] - The report emphasizes the potential for growth in the engineering machinery sector, supported by ongoing infrastructure investments [5] Export Chain - Recommended stocks in the export chain include Honghua Digital Science, Giant Star Technology, and Jack Technology [5]

Core Insights - The global semiconductor equipment market is projected to reach $168 billion by 2025, indicating significant changes in the competitive landscape [1] - Chinese companies are showing remarkable performance, with North Huachuang rising from eighth to fifth globally, and several others entering the top 30, highlighting the rise of domestic equipment [1] - The domestic manufacturing rate of semiconductor equipment in China has doubled to 20%-30% from three years ago [1] Group 1: Leading Tier - The top 10 rankings are dominated by companies from the US, Japan, and the Netherlands, with North Huachuang as the only Chinese company, covering both mature and advanced processes [2] - ASML remains the absolute leader in lithography, monopolizing the advanced process market below 7nm with its EUV technology [2] - Applied Materials, Lam Research, KLA, and Tokyo Electron are key players in various segments, maintaining technological leadership in their respective fields [2] Group 2: Mid-Tier - The 11-20 rankings are primarily occupied by US and Japanese companies, focusing on measurement, probe stations, and advanced packaging equipment, with Zhongwei and Shanghai Microelectronics making significant strides [5] - Zhongwei is a leader in etching, with its 5nm etching equipment being adopted by TSMC, and a cumulative shipment exceeding 6,800 units [6] - Shanghai Microelectronics is the only domestic lithography machine manufacturer, achieving mass production of 90nm lithography machines and maintaining a high yield rate [6] Group 3: Industry Trends - The changes in the TOP20 rankings reflect two major industry trends: the continuous advancement towards 3nm and 2nm processes, and the accelerated push for domestic substitution in the supply chain [8] - While leading companies from the US, Japan, and the Netherlands will continue to dominate the high-end equipment market, they face challenges from domestic alternatives and regional supply chain localization [8] - Chinese companies are expected to enhance their international market share through R&D investment and collaboration within the supply chain, while leading firms will solidify their technological advantages [8]

Core Viewpoint - Morgan Stanley has raised the price target for KLA Corp. (KLAC) to $1,751 from $1,697 while maintaining an Overweight rating on the shares, indicating a positive outlook for the company despite recent share price declines [1] Summary by Relevant Categories Earnings and Market Reaction - KLA's earnings were described as "not a major surprise," yet the shares experienced a decline in post-market trading [1] Growth Outlook - The company's FY26 WFE (Wafer Fabrication Equipment) market growth outlook is projected to be in the low-double digits, which is below Lam Research's (LRCX) guidance of 23% growth [1] Analyst Perspective - The firm views KLA's WFE guidance as conservative, suggesting that the risk is skewed to the upside, indicating potential for better-than-expected performance [1]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q (Mark one) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended December 31, 2025 or ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 Commission File Number 000-09992 KLA CORPORATION (Exact name of registrant as specified in its charter) (State or other jurisdiction of incorporation or organization) D ...

KLAC Stock: Chip-Gear Maker KLA Tops Estimates | Investor's Business DailyBREAKING: [Stocks Test Key Levels; U.S. Government Enters Shutdown]---Semiconductor equipment supplier KLA (KLAC) beat estimates for its fiscal second quarter and guided above views for the current period. But KLAC stock fell on Friday. The Milpitas, Calif.-based company late Thursday said it earned an adjusted $8.85 a share on sales of $3.3 billion in the quarter ended Dec. 31. Analysts polled by FactSet had expected earnings of $8.7 ...

Core Insights - KLA Corporation (KLAC) reported second-quarter fiscal 2026 non-GAAP earnings of $8.85 per share, exceeding the Zacks Consensus Estimate by 0.36% and reflecting a year-over-year increase of 7.9% [1][8] - Revenues for the quarter rose 7.2% year over year to $3.3 billion, surpassing the Zacks Consensus Estimate by 1.02% [1][8] - Despite strong earnings and revenue growth, KLAC shares fell 7.7% in pre-market trading [1] Segment Performance - Semiconductor Process Control revenues, which constitute 91.1% of total revenues, increased by 9% year over year and 4% sequentially to $3 billion [2] - Foundry & Logic and Memory segments accounted for approximately 60% and 40% of Semiconductor Process Control revenues, respectively [2] - Specialty Semiconductor Process revenues decreased by 12.4% year over year to $140 million but increased 17% sequentially [2] Product and Revenue Breakdown - Product revenues, making up 76.2% of total revenues, grew by 4.2% year over year to $2.51 billion, while service revenues increased by 18% year over year and 6% sequentially to $786 million [4] - Wafer Inspection revenues rose by 1% year over year and 2% sequentially to $1.57 billion, while Patterning revenues surged by 31% year over year and 4% sequentially to $696 million [5] - Taiwan and China were the largest contributors to revenue, accounting for 26% and 30%, respectively [5] Operating Metrics - The non-GAAP gross margin for the second quarter was 62.6%, exceeding the midpoint of the guidance range by 60 basis points [6] - Research and development (R&D) expenses increased by 10.9% year over year to $383.9 million, representing 11.6% of revenues, a decrease of 40 basis points year over year [6] - Selling, general and administrative (SG&A) expenses rose by 4.8% year over year to $279.9 million, accounting for 8.5% of revenues, a decrease of 20 basis points year over year [7] Financial Position - As of December 31, 2025, cash, cash equivalents, and marketable securities totaled $5.20 billion, up from $4.68 billion as of September 30, 2025 [10] - Long-term debt remained unchanged at $5.88 billion [10] - Cash flow from operating activities was $1.36 billion, compared to $1.16 billion in the previous quarter, with free cash flow at $1.26 billion [10] Shareholder Returns - In the fiscal second quarter, KLAC repurchased $548 million worth of shares and paid $250 million in dividends [11] Guidance - For the third quarter of fiscal 2026, KLAC expects revenues of $3.35 billion, plus or minus $150 million, and non-GAAP earnings of $9.08 per share, plus or minus 78 cents [12] - The company anticipates a non-GAAP gross margin of 61.75%, plus or minus 1%, with operating expenses expected to be around $645 million [12]

Core Insights - KLA Corporation's stock declined as earnings and guidance met expectations but did not exceed investor hopes [1][3] - The company reported second-quarter earnings of $8.85 per share, slightly above the analyst consensus estimate of $8.80 [2] - KLA's third-quarter adjusted EPS guidance is between $8.30 and $9.86, with revenue expectations of $3.2 billion to $3.5 billion [2] Analyst's Perspective - Goldman Sachs analyst James Schneider maintained a Neutral rating on KLA, raising the price target from $1,280 to $1,450 [3] - The stock may face downward pressure as results met estimates but fell short of heightened investor expectations [3] - KLA is well-positioned with a strong product portfolio but the analyst prefers companies with better exposure to etch and deposition tools [3][4] Industry Outlook - Near-term industry spending is shifting towards DRAM rather than process control, with KLA's valuation considered relatively full [4] - Total wafer fab equipment spending is projected to reach approximately $135 billion by 2026, with core WFE spending expected to grow in the high-single to low-double digits [5] - KLA anticipates moderate revenue growth in early 2026, with a recovery in China's WFE market expected after a decline in 2025 [5] Company Performance - Quarterly revenue met Wall Street expectations, while gross margin slightly exceeded consensus [4] - Non-GAAP earnings were close to Street estimates but fell short of the analyst's firm's forecast [4] - Services revenue surpassed both internal and consensus projections, while systems revenue met expectations [4]

Core Insights - KLA Corporation's stock declined as earnings and guidance met expectations but did not exceed investor hopes [1] - The company reported second-quarter earnings of $8.85 per share, slightly above the analyst consensus estimate of $8.80 [2] - KLA's third-quarter adjusted EPS is projected between $8.30 and $9.86, with revenue expected to be between $3.2 billion and $3.5 billion, both figures aligning closely with analyst estimates [2] Analyst's Perspective - Goldman Sachs analyst James Schneider maintained a Neutral rating on KLA, raising the price target from $1,280 to $1,450 [3] - The stock may experience downward pressure as results and guidance met estimates but fell short of heightened investor expectations [3] - Schneider highlighted KLA's strong position in process control products and potential long-term market share gains, yet preferred companies with better exposure to etch and deposition tools [3] Industry Outlook - Near-term industry spending is shifting towards DRAM rather than process control, with KLA's stock valuation considered relatively full at current levels [4] - KLA's quarterly revenue met Wall Street expectations, with gross margin slightly above consensus; however, non-GAAP earnings were slightly below Schneider's firm's forecast [4] - Management anticipates total wafer fab equipment spending to reach approximately $135 billion by 2026, with core WFE spending projected to grow in the high-single to low-double digits, reaching around $120 billion [5] - KLA expects moderate revenue growth in early 2026, with acceleration later in the year, and anticipates a recovery in China's WFE market in 2026 after a modest decline in 2025 [5] Recent Performance - KLA shares were down 12.33% at $1,477.00 at the time of publication [6]

Core Viewpoint - KLA Corporation's stock fell 11.5% despite reporting second-quarter earnings that exceeded Wall Street's expectations, indicating investor concerns over the company's challenges rather than its financial performance [1][3]. Financial Performance - KLA reported adjusted earnings of $8.85 per diluted share, surpassing the expected $8.80, with revenue reaching $3.30 billion, a 7.1% increase year-over-year [2]. - The company's earnings jumped 41% compared to the previous year, while sales exceeded analyst expectations [2]. Challenges and Market Reaction - CFO Bren Higgins highlighted longer equipment delivery lead times due to component shortages and tariff expenses impacting profitability, which contributed to investor concerns [3]. - The stock had previously gained 140% over the past year, leading to a sell-off as investors reacted to the earnings report, viewing it as a profit-taking retreat rather than a disappointing outcome [4][7]. Competitive Position - KLA's market position remains strong, as it offers essential products with no serious alternatives, particularly in the high-end semiconductor manufacturing sector [6]. - The company is expected to continue experiencing robust business growth as demand for leading-edge tools in chip foundries persists [6].

Group 1 - Deep-pocketed investors have adopted a bearish approach towards KLA, indicating that significant market movements may be imminent [1] - The options activity for KLA has been extraordinary, with 36% of heavyweight investors leaning bullish and 43% bearish, including 35 puts totaling $3,061,187 and 88 calls amounting to $16,155,840 [2] - The major market movers are focusing on a price band between $590.0 and $2180.0 for KLA over the last three months [3] Group 2 - Analyzing volume and open interest is crucial for tracking liquidity and interest in KLA's options, particularly within the strike price range of $590.0 to $2180.0 over the last 30 days [4] - KLA's current trading volume stands at 1,271,317, with the stock price down by -12.13% at $1540.0, and RSI indicators suggest it may be approaching overbought conditions [7] - Market experts have issued ratings for KLA, with a consensus target price of $1642.0, highlighting the potential for higher profits through strategic trading despite the associated risks [6]