KLA Corporation (KLAC)

KLA reported fiscal 2026 revenue of $13.58 billion and net income of $4.83 billion on 28 July 2026 2. Fourth-quarter revenue was $3.66 billion, up from $3,175 million in the fourth quarter of fiscal 2025 2.

KLA makes the machines that inspect and measure chips while they are being built, and AI-driven chip spending is the main reason demand is strong 12. Chief executive Rick Wallace said he sees momentum across the business accelerating in the second half of calendar 2026 and continuing through 2027 2.

Backlog, which is orders received but not yet delivered, rose from $7.86 billion to $12.57 billion over the year, and the annual report ties that to the AI infrastructure buildout 1. For the quarter ending in September the company expects revenue of $4.0 billion, give or take $200 million 2.

The open question is China, where the US Commerce Department suspended its Affiliates Rule, which widens export limits to firms owned half or more by listed parties, only until November 2026 1.

KLA was formed as KLA-Tencor Corporation in April 1997 through the merger of KLA Instruments Corporation and Tencor Instruments, which began operations in 1975 and 1976 1. Its business is selling inspection and measuring tools that help chipmakers find defects early and raise the share of good chips per wafer 1.

Revenue was $9.81 billion in fiscal 2024, $12.16 billion in fiscal 2025 and $13.58 billion in fiscal 2026 1. Net income over the same years was $2.76 billion, $4.06 billion and $4.83 billion 1.

Wafer inspection, the largest product line, grew 43 percent in fiscal 2025 to $6.20 billion, while total revenue grew 24 percent 1.

In the second quarter of fiscal 2025 the company wrote down $239.1 million of the value of past acquisitions in its circuit board business, after its long-term forecast for that business worsened 1.

The company also exited its display business, and the lack of that revenue partly offset growth in the circuit board segment in the latest year 1.

Revenue rose 12 percent in fiscal 2026, which the annual report attributes to higher leading-edge spending by chipmakers in foundry and logic, memory and advanced packaging, backed by AI demand 1. Service revenue rose 16 percent as the base of installed tools grew 1.

China's share of revenue fell from 42.8 percent in fiscal 2024 to 29.8 percent in fiscal 2026 1. The annual report says revenue there was comparable to the year before, as spending on older chip technology offset export limits on some advanced sales 1.

Taiwan grew from 17.7 percent of revenue in fiscal 2024 to 26.8 percent in fiscal 2026, and Korea from 9.2 percent to 13.5 percent, on leading-edge and memory spending 1.

Wafer inspection and patterning

Wafer inspection finds tiny defects on chips and wafers during manufacturing, and it was the largest product line at $6.63 billion, 49 percent of revenue 1. Metrology tools measure pattern dimensions, film thickness and layer-to-layer alignment on wafers 1.

Patterning revenue was $2.71 billion, up 23 percent 1. KLA's reticle systems support quality control while the masks used to print chip layers are made 1.

Services

Services are maintenance and support for tools already installed, and they brought in $3.13 billion, 23 percent of revenue, up 16 percent 1. The company describes much of this revenue as coming from recurring contracts 1.

Specialty process and circuit board inspection

Specialty Semiconductor Process sells vacuum deposition and etching tools to makers of MEMS, radio-frequency chips and power chips, and it earned $502.5 million, down 3 percent 1. PCB and Component Inspection, which checks circuit boards and chip packages, earned $460.3 million, up 29 percent 1.

Customers, rivals and plants

Taiwan Semiconductor Manufacturing Company was the one customer above 10 percent of revenue 1. The annual report names Applied Materials, ASML, Hitachi High-Tech, Lasertec and Onto Innovation among its rivals 1.

Headquarters are in Milpitas, California, and principal manufacturing is in the US, Singapore, Israel, China and Europe 1. At 30 June 2026 the company had about 17,000 regular full-time employees, and 50 percent of them were in Asia 1.

People and current problems

Rick Wallace is president, chief executive and a director, and Bren Higgins is executive vice president and chief financial officer 1. US export rules are the main named problem: Commerce may keep adding Chinese entities to its Entity List, which could disrupt shipments to China-based customers 1.

The umbrella, in words

KLA sells under product names such as Surfscan, Archer, Orbotech, SPTS and Filmetrics 1. The subsidiaries list for 30 June 2026 includes Frontline P.C.B. Solutions in Israel, ICOS Vision Systems NV in Belgium, Capres A/S in Denmark and Zeta Instruments in Delaware 3.

The annual report says the company owned over 9,100 active patents at 30 June 2026 and had over 3,600 applications pending 1. It names no property by segment and says its facilities are well maintained 1.

The proxy statement filed in September names two large holders: BlackRock, Inc. with 8.8 percent and Vanguard Capital Management with 7.5 percent 4. Both figures rest on those holders' own Schedule 13G filings 4.

For the first quarter of fiscal 2027 the company expects revenue of $4.0 billion, give or take $200 million, and a GAAP gross margin of 61.6 percent, give or take 1.0 point 2.

The annual report says management expects continued revenue growth in fiscal 2027 as customer engagement and demand signals strengthen 1.

The company says demand at the 2-nanometer chip node, where process control intensity is rising, continues to support AI-related investment 1.

The board has $9.74 billion of repurchase authority left, after a $7.00 billion increase in the third quarter of fiscal 2026 1. The quarterly dividend is $0.230 per share, the 17th consecutive annual increase 1.

The annual meeting is set for 4 November 2026 in Milpitas, where holders vote on nine directors, the auditor for the year ending 30 June 2027 and an advisory vote on executive pay 4.

The Affiliates Rule suspension that Commerce set runs only until November 2026, a decision that sits with the regulator 1.