Short answer
KLA Corporation (KLAC) filed its fiscal 2026 10-K annual report with the SEC on Aug 6, 2026. It reported revenue of $13.6B (+11.7% year over year) and net income of $4.8B.
- Top risk flagged: Export restrictions under U.S. BIS Rules and Entity List limit sales to China; China revenue fell from 43% in FY24 to 30% in FY26
FY2026 key financial metrics · XBRL
- Revenue
- $13.6B
- +11.7% YoY
- Net income
- $4.8B
- +18.9% YoY
- EPS (diluted)
- $3.66
- −87.9% YoY
- ROE
- 76.1%
- −10.5 pp YoY
- Operating cash flow
- $4.1B
- +1.5% YoY
Source: XBRL data from the KLA Corporation (KLAC) FY2026 10-K on SEC EDGAR. USD.
KLA Corporation FY2026 10-K analysis
AI summary of each section, grounded in the filing text
Business Overview
- Core business model: advanced process control and process-enabling solutions for semiconductor and electronics manufacturing, with 23% revenue from related service contracts in fiscal 2026
- New emphasis on AI infrastructure buildout driving backlog growth $12.57B up from $7.86B in 2025, reflecting strong demand for leading-edge semiconductor manufacturing
- Strategic focus sharpened on supporting 2-nanometer node and expanded AI/HPC packaging markets, leveraging products for EUV lithography and advanced packaging
- Workforce size about 17,200 employees globally as of June 30, 2026, with voluntary turnover under 3.4%, coupled with ongoing investments in R&D centers worldwide
- Noteworthy ESG commitment: science-based GHG reduction targets validated in 2024, including 50% Scope 1 & 2 emissions cut by 2030, 100% renewable electricity goal by 2030
Management Discussion & Analysis
- Revenue $13.58B, up 12% YoY ($1.42B increase) driven by higher product ($980.7M) and service ($442.6M) sales
- Gross margin 61.3% vs 60.9%; net income $4.83B vs $4.06B; effective tax rate 13.8% vs 12.5%
- Best segment: Semiconductor Process Control $12.24B, up 12%, led by foundry/logic, memory, advanced packaging; worst: Specialty Semiconductor Process $584M, down 1%
- Cash flow: Operating cash flow $4.14B; Capital expenditures increased by $40.7M; Share repurchases $2.29B; Dividends paid $1.06B, dividend raised to $0.230/share quarterly
- Outlook: Expect continued revenue growth in FY2027 driven by AI/HPC demand; risks include geopolitical issues, tariffs, supply chain constraints impacting timing/costs
Risk Factors
- Export restrictions under U.S. BIS Rules and Entity List limit sales to China; China revenue fell from 43% in FY24 to 30% in FY26
- Geopolitical risk: instability and conflicts in Israel disrupt operations, increase shipping costs, threaten employee availability
- Supply chain: DRAM chip shortages and rare earth export controls by China raise component costs, harming gross margin in FY27
- Competitive threat: potential integrated products by larger competitors combining inspection and metrology functionality
- Financial risk: $5.95B senior notes outstanding with interest rate swaps converting $2.00B to floating rate, increasing interest expense exposure
Generated from the filing text; verify against the original. How to read a 10-K
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