Insights into KLA's Upcoming Earnings

KLA (NASDAQ:KLAC) is preparing to release its quarterly earnings on Wednesday, 2025-10-29. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect KLA to report an earnings per share (EPS) of $8.59.

The market awaits KLA's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Performance in Previous Earnings

Last quarter the company beat EPS by $0.84, which was followed by a 0.87% increase in the share price the next day.

Here's a look at KLA's past performance and the resulting price change:

KLA Share Price Analysis

Shares of KLA were trading at $1215.13 as of October 27. Over the last 52-week period, shares are up 73.68%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on KLA

For investors, grasping market sentiments and expectations in the industry is vital. This analysis explores the latest insights regarding KLA.

Analysts have provided KLA with 10 ratings, resulting in a consensus rating of Outperform. The average one-year price target stands at $1052.8, suggesting a potential 13.36% downside.

Comparing Ratings with Peers

This comparison focuses on the analyst ratings and average 1-year price targets of Applied Mat, Lam Research and Teradyne, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for Applied Mat, with an average 1-year price target of $209.23, suggesting a potential 82.78% downside.
• Analysts currently favor an Buy trajectory for Lam Research, with an average 1-year price target of $141.06, suggesting a potential 88.39% downside.
• Analysts currently favor an Neutral trajectory for Teradyne, with an average 1-year price target of $139.44, suggesting a potential 88.52% downside.

Peers Comparative Analysis Summary

The peer analysis summary presents essential metrics for Applied Mat, Lam Research and Teradyne, unveiling their respective standings within the industry and providing valuable insights into their market positions and comparative performance.

Key Takeaway:

KLA outperforms its peers in revenue growth, gross profit, and return on equity. It ranks at the top for revenue growth and gross profit, with the highest percentages among the group. In terms of return on equity, KLA also leads the pack with the highest percentage. Overall, KLA is positioned as the top performer among its peers based on the provided metrics.

Delving into KLA's Background

KLA is one of the largest semiconductor wafer fabrication equipment, or WFE, manufacturers in the world. It specializes in the market segment of semiconductor process control, wherein machines inspect semiconductor wafers during research and development and manufacturing for defects and verify precise measurements. In this section of the market, KLA holds a majority share. It also has a small exposure to the etch and deposition segments of the WFE market. It counts as top customers the largest chipmakers in the world, including TSMC and Samsung.

Understanding the Numbers: KLA's Finances

Market Capitalization Highlights: Above the industry average, the company's market capitalization signifies a significant scale, indicating strong confidence and market prominence.

Positive Revenue Trend: Examining KLA's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 23.59% as of 30 June, 2025, showcasing a substantial increase in top-line earnings. As compared to its peers, the company achieved a growth rate higher than the average among peers in Information Technology sector.

Net Margin: The company's net margin is a standout performer, exceeding industry averages. With an impressive net margin of 37.89%, the company showcases strong profitability and effective cost control.

Return on Equity (ROE): KLA's ROE surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 27.66% ROE, the company effectively utilizes shareholder equity capital.

Return on Assets (ROA): KLA's ROA excels beyond industry benchmarks, reaching 7.7%. This signifies efficient management of assets and strong financial health.

Debt Management: KLA's debt-to-equity ratio is notably higher than the industry average. With a ratio of 1.3, the company relies more heavily on borrowed funds, indicating a higher level of financial risk.

To track all earnings releases for KLA visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.