KLA Corporation (KLAC) has seen its shares rise 21.7% over the past three months, surpassing the Zacks Computer and Technology sector, which dropped by 2%. However, KLAC’s performance has lagged behind competitors like MKS Instruments, Lam Research, and Entegris due to underwhelming guidance for the third quarter of fiscal 2026, where it anticipates revenues of approximately $3.35 billion (+/- $150 million).
The company faces challenges from a weak product mix and rising costs of DRAM chips affecting gross margins, alongside increasing lead times and negative tariff impacts. Despite these difficulties, KLA benefits from growing demand for advanced packaging, projected to increase mid-to-high teens in 2026. The consensus estimates show third-quarter earnings at $9.15 per share, implying 8.8% growth year-over-year, with revenues expected to reach $3.38 billion, up 10.3% from the previous year.
For fiscal 2026, KLA forecasts earnings of $36.63 per share and revenues of $13.41 billion, both representing a 10% increase from 2025. The company’s effective positioning within advanced packaging and AI infrastructure represents potential for continued growth despite short-term operational headwinds.
