KLA Corporation's stock declined following its second quarter earnings report despite beating expectations. The company reported non-GAAP earnings per share of $8.85, beating estimates by $0.05, and revenue of $3.3 billion, beating by $50 million. However, the stock dropped approximately 7% in extended trading after the earnings announcement. The decline was attributed to management's financial guidance for the third quarter and fiscal year 2026. KLA provided a mixed outlook for Q3 with earnings and revenue guidance that bracketed Wall Street estimates. The company's fiscal 2026 wafer fabrication equipment market growth guidance of low-double digits was below competitor Lam Research's 23% growth guidance. Despite the stock decline, multiple analysts raised their price targets. Jefferies increased its target to $1,850 from $1,500 while maintaining a Buy rating. Morgan Stanley raised its target to $1,751 from $1,697 and maintained an Overweight rating.
Read full analysisKLA Corporation's stock declined following its second quarter earnings report despite beating expectations. The company reported non-GAAP earnings per share of $8.85, beating estimates by $0.05, and revenue of $3.3 billion, beating by $50 million. However, the stock dropped approximately 7% in extended trading after the earnings announcement. The decline was attributed to management's financial guidance for the third quarter and fiscal year 2026. KLA provided a mixed outlook for Q3 with earnings and revenue guidance that bracketed Wall Street estimates. The company's fiscal 2026 wafer fabrication equipment market growth guidance of low-double digits was below competitor Lam Research's 23% growth guidance. Despite the stock decline, multiple analysts raised their price targets. Jefferies increased its target to $1,850 from $1,500 while maintaining a Buy rating. Morgan Stanley raised its target to $1,751 from $1,697 and maintained an Overweight rating.
KLA Corporation (KLAC) is a publicly traded company in the Semiconductors sector.