⚠ A Record That Began With a Special PayoutLow threat

KLA (KLAC) — threat to the moat

KLA's dividend record began with a special payout eight times the year's profit, which left equity at $421 million.

KLA's capital returns began with a payment most boards would not make. The fiscal 2015 special dividend took dividends paid to $3,041.1 million in a year of $366.2 million of net income1, and left equity at $421.4 million2.

KLA shareholders equity at fiscal year-end ($M)421FY20151,326FY20173,378FY20211,401FY20223,368FY20246,350FY2026KLA XBRL filings (SEC EDGAR) and Form 10-K FY2026
Equity was cut to $421 million in FY2015 and $1.4 billion in FY2022.

That set the pattern for the balance sheet. KLA still carries $5.95 billion of senior notes3, and the 10-K says plainly: "We have a leveraged capital structure."4

The dividend raises since have been affordable, at about a fifth of earnings5. The risk is that a board used to returning cash at the top of a cycle does so again, with borrowed money, just before a downturn.

The special dividend was declared in the December 2014 quarter6, ten months before KLA-Tencor agreed to merge with Lam Research in October 20157. The capital structure KLA runs today was set in that period.

Equity took years to rebuild. Dividends declared in fiscal 2015 came to $18.50 a share before the split8, and equity was $421.4 million that June, $689.1 million a year later and $1,326.4 million by June 20179. It reached $3,377.6 million in fiscal 2021 and was cut back to $1,401.4 million a year later by the largest buyback10. Thin equity is a deliberate, long-running choice.

Diluted earnings that year were $2.24 a share before the split11, against dividends declared of $18.50: the payout was more than eight times earnings12.

A second special dividend or a large buyback financed with new debt while revenue was falling would repeat 2014 at a worse moment.

References
  1. ReportedThe fiscal 2015 special dividend took dividends paid to $3,041.1 million in a year of $366.2 million of net income, and left equity at $421.4 million.
    SEC EDGAR XBRL company facts for KLA (CIK 319201) - revenue, cost of revenue, research and development, net income, diluted EPS and shares, operating cash flow, capital spending, buybacks, dividends, goodwill and equity for fiscal 2015-2026; per-share figures before fiscal 2024 are pre-split. — FY2015-FY2026 · publ. September 2026 · source ↗
  2. ReportedThe fiscal 2015 special dividend took dividends paid to $3,041.1 million in a year of $366.2 million of net income, and left equity at $421.4 million.
    SEC EDGAR XBRL company facts for KLA (CIK 319201) - revenue, cost of revenue, research and development, net income, diluted EPS and shares, operating cash flow, capital spending, buybacks, dividends, goodwill and equity for fiscal 2015-2026; per-share figures before fiscal 2024 are pre-split. — FY2015-FY2026 · publ. September 2026 · source ↗
  3. ReportedKLA still carries $5.95 billion of senior notes, and the 10-K says plainly: "We have a leveraged capital structure."
    KLA Corporation Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1A risk factors: export controls, tariffs, suppliers, leverage and cyclicality. — FY2026 · publ. 6 August 2026 · source ↗
  4. ReportedKLA still carries $5.95 billion of senior notes, and the 10-K says plainly: "We have a leveraged capital structure."
    KLA Corporation Form 10-K for fiscal 2026 (year ended 30 June 2026) - Item 1A risk factors: export controls, tariffs, suppliers, leverage and cyclicality. — FY2026 · publ. 6 August 2026 · source ↗
  5. Moat Explorer calcThe dividend raises since have been affordable, at about a fifth of earnings.
    Moat Explorer calculation from KLA's reported figures ($ millions unless stated; fiscal years end on 30 June; per-share figures adjusted for the ten-for-one split of June 2026). Revenue growth: FY2022 9,211.9 / 6,918.7 - 1 = +33.1%; FY2023 10,496.1 / 9,211.9 - 1 = +13.9%; FY2024 9,812.2 / 10,496.1 - 1 = -6.5%, the only decline FY2015-FY2026; FY2025 12,156.2 / 9,812.2 - 1 = +23.9%; FY2026 13,579.5 / 12,156.2 - 1 = +11.7%; FY2015-FY2026 13,579.5 / 2,814.0 = 4.8 times, 15.4% a year; FY2026 against FY2023 13,579.5 / 10,496.1 - 1 = +29%. Net income FY2024 2,761.9 / 3,387.3 - 1 = -18.5%, a fall of 625.4, of which the 289.5 impairment is 46%; net margin 4,830.8 / 13,579.5 = 35.6%; Other FY2023 381.1 / 259.4 - 1 = +46.9%; gross margin 1,598.8 / 2,814.0 = 56.8% (FY2015), 2,699.5 / 4,568.9 = 59.1% (FY2019); FY2026 4,830.8 / 4,061.6 - 1 = +18.9%; FY2015-FY2026 4,830.8 / 366.2 = 13.2 times; EPS 3.66 / 0.224 = 16.3 times. Operating income (no line reported): gross profit 8,324.4 - R&D 1,532.1 - SG&A 1,131.5 = 5,660.8 (FY2026), 5,660.8 / 13,579.5 = 41.7%; interest cover 5,660.8 / 284.4 = about 20 times. Segments FY2026: Semiconductor Process Control 12,244.7 / 13,579.5 = 90.2% of revenue; segment gross profit 12,244.7 - 4,453.6 = 7,791.1, 7,791.1 / 12,244.7 = 63.6%; segment profit 5,482.8 / 12,244.7 = 44.8%; 5,482.8 / 5,655.4 = 96.9% of segment profit; Specialty Semiconductor Process 64.6 / 584.1 = 11.1%, gross 278.8 / 584.1 = 47.7% (FY2021 206.7 / 369.2 = 56.0%); PCB and Component Inspection 108.0 / 750.4 = 14.4%, gross 385.3 / 750.4 = 51.3% (FY2024 159.0 / 552.5 = 28.8%); smaller segments 64.6 + 108.0 = 172.6; SSP segment gross margin FY2022 242.5 / 456.6 = 53.1%, FY2023 281.9 / 543.4 = 51.9%, FY2024 282.9 / 528.7 = 53.5%, FY2025 303.9 / 587.1 = 51.8%; Orbotech segments revenue less product categories 1,334.5 - (502.5 + 460.3) = 371.7; process control share of research 1,341.3 / 1,532.1 = 87.5%, almost nine-tenths; SG&A 1,131.5 / 13,579.5 = 8.3%; segment revenue 584.1 + 750.4 = 1,334.5. Process control segment research 1,341.3 / 12,244.7 = 11%; segment revenue growth 12,244.7 / 10,947.4 - 1 = +11.9%; SSP products 502.5 / 584.1 = 86% of segment revenue, research 59.4 / 584.1 = 10%; PCI Q4 241.1 / 750.4 = 32% of the year; process control lines FY2019 (1,630.9 + 1,161.3) / 4,568.9 = 61.1%; patterning within process control lines 2,791.1 / (4,336.7 + 2,791.1) = 39.2% (FY2023), 2,706.8 / (6,630.8 + 2,706.8) = 29.0% (FY2026); services share FY2019 1,176.7 / 4,568.9 = 25.8%; capital spending 375.9 / 45.8 = 8.2 times; peers 656.33 + 393.13 + 383.87 = 1,433.3, 1,433.3 / 245.24 = 5.8 times; FY2015 customers 15 + 12 + 11 = 38%. Process control segment gross margin FY2018 2,554.2 / 3,944.0 = 64.8%; FY2019 2,590.4 / 4,080.8 = 63.5%; FY2020 3,028.2 / 4,745.4 = 63.8%; FY2021 3,705.2 / 5,734.8 = 64.6%; FY2022 5,167.7 / 7,924.8 = 65.2%; FY2023 5,957.6 / 9,324.2 = 63.9%; FY2024 5,629.3 / 8,733.6 = 64.5%; FY2025 7,024.6 / 10,947.4 = 64.2%. Process control revenue FY2024 8,733.6 / 9,324.2 - 1 = -6.3%. Orbotech-related goodwill impairments 256.6 + 289.5 + 239.1 = 785.2. Research: 1,532.1 / 530.6 = 2.9 times; 530.6 / 2,814.0 = 18.9% (FY2015); 526.7 / 3,480.0 = 15.1% (FY2017); 711.0 / 4,568.9 = 15.6% (FY2019); 928.5 / 6,918.7 = 13.4% (FY2021); 1,296.7 / 10,496.1 = 12.4% (FY2023); 1,279.0 / 9,812.2 = 13.0% (FY2024); 1,532.1 / 13,579.5 = 11.3% (FY2026); FY2016 481.3 against 530.6 and FY2024 1,279.0 / 1,296.7 - 1 = -1.4%; research staff 27% x 17,000 = about 4,600. Product categories (FY2019-FY2026): wafer inspection 6,630.8 / 1,630.9 = 4.1 times, 22.2% a year; FY2025 6,198.8 / 4,333.3 - 1 = +43.1%; FY2026 6,630.8 / 6,198.8 - 1 = +7.0%; share 1,630.9 / 4,568.9 = 35.7% (FY2019), 6,198.8 / 12,156.2 = 51.0% (FY2025), 6,630.8 / 13,579.5 = 48.8% (FY2026). Patterning 2,706.8 / 1,161.3 = 2.3 times, 12.9% a year; FY2022 2,050.0 / 1,506.0 - 1 = +36.1%; FY2023 2,791.1 / 2,050.0 - 1 = +36.2%; FY2024 2,054.4 / 2,791.1 - 1 = -26.4%; FY2025 2,196.3 / 2,054.4 - 1 = +6.9%; FY2026 2,706.8 / 2,196.3 - 1 = +23.2%; share 2,791.1 / 10,496.1 = 26.6% (FY2023), 2,196.3 / 12,156.2 = 18.1% (FY2025), 2,706.8 / 13,579.5 = 19.9% (FY2026); process control lines 48.8 + 19.9 = 68.7%. SSP products 502.5 / 13,579.5 = 3.7%. PCI products 460.3 / 13,579.5 = 3.4%; FY2025 355.9 / 291.2 - 1 = +22.2%; FY2026 460.3 / 355.9 - 1 = +29.3%. Services 3,125.9 / 1,176.7 = 2.7 times, (3,125.9 / 1,176.7) ^ (1/7) - 1 = 15.0% a year; growth FY2020 +25.6%, FY2021 +13.6%, FY2022 +13.8%, FY2023 +10.8%, FY2024 2,329.6 / 2,117.0 - 1 = +10.0%, FY2025 +15.2%, FY2026 3,125.9 / 2,683.3 - 1 = +16.5%; FY2024 increase 2,329.6 - 2,117.0 = 212.6; share 2,117.0 / 10,496.1 = 20.2% (FY2023), 2,329.6 / 9,812.2 = 23.7% (FY2024), 3,125.9 / 13,579.5 = 23.0% (FY2026). Product revenue FY2023 10,496.1 - 2,117.0 = 8,379.1; FY2024 fall 8,379.1 - 7,482.7 = 896.4. A one-third fall in product revenue 10,453.5 / 3 = 3,484.5 against a year of 15% service growth 3,125.9 x 0.15 = 469, less than a seventh. Other 153.1 / 381.1 - 1 = -60%; 153.1 / 13,579.5 = 1.1%; FY2024 333.2 / 381.1 - 1 = -12.6%; FY2025 204.6 / 333.2 - 1 = -38.6%; FY2026 153.1 / 204.6 - 1 = -25.2%. Deferred system and service revenue 932.9 + 604.1 + 238.1 = 1,775.1, about $1.8 billion. Unrecognised contract price 1,775.1 / 3,125.9 x 12 = about 7 months of service revenue. Region: Taiwan FY2024 1,738.1 / 2,493.4 - 1 = -30.3%; FY2026 against FY2024 3,643.7 / 1,738.1 - 1 = +110%; FY2025 3,205.4 / 1,738.1 - 1 = +84.4%; FY2023 2,493.4 / 2,528.5 - 1 = -1.4%. Korea FY2019 584.1 / 1,178.6 - 1 = -50%; FY2024 906.9 / 1,895.7 - 1 = -52%; share 1,178.6 / 4,036.7 = 29.2% (FY2018), 584.1 / 4,568.9 = 12.8% (FY2019), 1,895.7 / 10,496.1 = 18.1% (FY2023), 906.9 / 9,812.2 = 9.2% (FY2024), 1,833.8 / 13,579.5 = 13.5% (FY2026). China FY2025 4,042.6 / 4,196.7 - 1 = -3.7%; FY2026 4,048.4 / 4,042.6 - 1 = +0.1%; China plus Taiwan 29.8% + 26.8% = 56.6%; Q4 FY2026 China 4,048.4 - 3,091.6 = 956.7, 956.7 / 3,657.6 = 26.2%. Backlog 12,570 / 7,860 - 1 = +59.9%; 12,570 / 13,579.5 = 93% of revenue; unrecognised contract price 1,775.1 / 12,570 = 14% of backlog. Advanced packaging about 1,000 / 13,579.5 = about 7% of revenue. Quarter: Q4 FY2026 revenue 3,657.6 / 3,174.7 - 1 = +15.2%; 3,657.6 / 3,415.1 - 1 = +7.1%; service 820.4 / 702.6 - 1 = +16.8%; process control 3,256.8 / 2,877.6 - 1 = +13.2%; PCB and Component Inspection 241.1 / 154.1 - 1 = +56.5%; GAAP gross margin (3,657.6 - 1,413.1) / 3,657.6 = 61.4%. Guidance midpoint 4,000 / 3,209.7 - 1 = +24.6%; 4,000 / 3,657.6 - 1 = +9.4%. Consensus fiscal 2027 18,110 / 13,579.5 - 1 = +33.4%; EPS 5.45 / 3.66 - 1 = +49%. The 2030 model at 13% a year: 13,579.5 x 1.13 ^ 2 = 17,340 (FY2028); 13,579.5 x 1.13 ^ 5 = about 25,000 (FY2031). Cash and capital: free cash flow 4,143.1 - 375.9 = 3,767.1; capital returns 2,289.8 + 1,057.8 = 3,347.6, 3,347.6 / 3,767.1 = 88.9%; dividends 1,057.8 / 4,830.8 = 21.9% of net income; buybacks 2,289.8 / 1,057.8 = 2.2 times dividends; capital spending 375.9 / 13,579.5 = 2.8% of revenue; operating cash flow 3,308.6 / 2,761.9 = 120% (FY2024), 4,081.9 / 4,061.6 = 100% (FY2025), 4,143.1 / 4,830.8 = 86% (FY2026); operating cash flow growth 4,143.1 / 4,081.9 - 1 = +1.5%; net income less operating cash flow 4,830.8 - 4,143.1 = 687.7; receivables 2,889.2 / 2,263.9 - 1 = +27.6%, an increase of 625.3; inventories 3,648.5 - 3,212.1 = 436.4; together 1,061.7. FY2015 dividends paid 3,041.1 / 366.2 = 8.3 times net income. Buybacks FY2015-FY2026 602.9 + 181.7 + 25.0 + 203.2 + 1,095.2 + 829.1 + 938.6 + 3,967.8 + 1,311.9 + 1,735.7 + 2,149.9 + 2,289.8 = 15,330.8; dividends paid 3,041.1 + 346.3 + 344.0 + 402.1 + 472.3 + 522.4 + 559.4 + 638.5 + 732.6 + 773.0 + 904.6 + 1,057.8 = 9,794.1. Diluted shares 1,319.6 / 1,637.0 - 1 = -19.4%. Net debt 5,887.4 - 1,649.8 - 3,252.6 = 985.0 (FY2026); 5,884.3 - 2,078.9 - 2,415.7 = 1,389.7 (FY2025); 6,630.1 - 1,977.1 - 2,526.9 = 2,126.1 (FY2024); 985.0 / 3,767.1 = 26% of free cash flow. Return on equity 4,830.8 / ((4,692.5 + 6,349.8) / 2 = 5,521.2) = 87.5%; FY2025 4,061.6 / ((3,368.3 + 4,692.5) / 2) = 100.8%; FY2024 2,761.9 / ((2,919.8 + 3,368.3) / 2) = 87.9%. Buyback authorisation 9,740 / 245,240 = 4%; 9,740 / (0.9 x 3,767.1) = 2.9 years; 9,740 / 571.0 = 17 quarters. Valuation: market value 245,240 / 383,870 = 0.64 (Applied Materials); 656,330 / 245,240 = 2.7 (ASML); 245,240 / 14,050 = 17.5 (Onto Innovation); 393,130 / 245,240 = 1.6 (Lam Research); 245,240 / 394,116 - 1 = -38% (June to September 2026); 394,116 / 118,454 = 3.3 times (June 2025 to June 2026); price 187.92 / 307.37 - 1 = -38.9%; 187.92 / 227.35 - 1 = -17% (June buyback price); 227.35 / 187.92 = 1.21 (21% more shares); free cash flow yield 3,767.1 / 245,240 = 1.5%; research 1,532.1 / 245,240 = 0.6% of KLA market value and 1,532.1 / 14,050 = 10.9%, about a ninth, of Onto Innovation's; revenue 13,579.5 / Lam Research 23,232.7 = 58%; market value 245,240 / 393,130 = 62%; buybacks 2,289.8 / 187.92 = 12.2 million shares at the September price, 12.2 / 1,319.6 = 0.9%; authorisation 9,740 / 2,289.8 = 4.3 years at the fiscal 2026 pace; P/E 245,240 / 4,830.8 = 50.8; P/S 245,240 / 13,579.5 = 18.1. Gross margin gap 61.3% less Lam Research about 50% = about 11 points - cash flow, capital returns, balance sheet, per-share figures and valuation. — FY2015-FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in KLA's Forms 10-K and 10-Q, quarterly results releases, XBRL filings and market data; operands shown in the source line.
  6. ReportedThe special dividend was declared in the December 2014 quarter, ten months before KLA-Tencor agreed to merge with Lam Research in October 2015.
    KLA-Tencor Form 10-K for fiscal 2017 - the terminated merger agreement with Lam Research, the fiscal 2015 special dividend, revenue by region for fiscal 2015-2017 and customers above 10% of revenue for fiscal 2015-2017. — FY2017 · publ. August 2017 · source ↗
  7. ReportedThe special dividend was declared in the December 2014 quarter, ten months before KLA-Tencor agreed to merge with Lam Research in October 2015.
    KLA-Tencor Form 10-K for fiscal 2017 - the terminated merger agreement with Lam Research, the fiscal 2015 special dividend, revenue by region for fiscal 2015-2017 and customers above 10% of revenue for fiscal 2015-2017. — FY2017 · publ. August 2017 · source ↗
  8. ReportedDividends declared in fiscal 2015 came to $18.50 a share before the split, and equity was $421.4 million that June, $689.1 million a year later and $1,326.4 million by June 2017.
    KLA-Tencor Form 10-K for fiscal 2017 - the terminated merger agreement with Lam Research, the fiscal 2015 special dividend, revenue by region for fiscal 2015-2017 and customers above 10% of revenue for fiscal 2015-2017. — FY2017 · publ. August 2017 · source ↗
  9. ReportedDividends declared in fiscal 2015 came to $18.50 a share before the split, and equity was $421.4 million that June, $689.1 million a year later and $1,326.4 million by June 2017.
    SEC EDGAR XBRL company facts for KLA (CIK 319201) - revenue, cost of revenue, research and development, net income, diluted EPS and shares, operating cash flow, capital spending, buybacks, dividends, goodwill and equity for fiscal 2015-2026; per-share figures before fiscal 2024 are pre-split. — FY2015-FY2026 · publ. September 2026 · source ↗
  10. ReportedIt reached $3,377.6 million in fiscal 2021 and was cut back to $1,401.4 million a year later by the largest buyback.
    SEC EDGAR XBRL company facts for KLA (CIK 319201) - revenue, cost of revenue, research and development, net income, diluted EPS and shares, operating cash flow, capital spending, buybacks, dividends, goodwill and equity for fiscal 2015-2026; per-share figures before fiscal 2024 are pre-split. — FY2015-FY2026 · publ. September 2026 · source ↗
  11. ReportedDiluted earnings that year were $2.24 a share before the split, against dividends declared of $18.50: the payout was more than eight times earnings.
    KLA-Tencor Form 10-K for fiscal 2017 - the terminated merger agreement with Lam Research, the fiscal 2015 special dividend, revenue by region for fiscal 2015-2017 and customers above 10% of revenue for fiscal 2015-2017. — FY2017 · publ. August 2017 · source ↗
  12. Moat Explorer calcDiluted earnings that year were $2.24 a share before the split, against dividends declared of $18.50: the payout was more than eight times earnings.
    Moat Explorer calculation from KLA's reported figures ($ millions unless stated; fiscal years end on 30 June; per-share figures adjusted for the ten-for-one split of June 2026). Revenue growth: FY2022 9,211.9 / 6,918.7 - 1 = +33.1%; FY2023 10,496.1 / 9,211.9 - 1 = +13.9%; FY2024 9,812.2 / 10,496.1 - 1 = -6.5%, the only decline FY2015-FY2026; FY2025 12,156.2 / 9,812.2 - 1 = +23.9%; FY2026 13,579.5 / 12,156.2 - 1 = +11.7%; FY2015-FY2026 13,579.5 / 2,814.0 = 4.8 times, 15.4% a year; FY2026 against FY2023 13,579.5 / 10,496.1 - 1 = +29%. Net income FY2024 2,761.9 / 3,387.3 - 1 = -18.5%, a fall of 625.4, of which the 289.5 impairment is 46%; net margin 4,830.8 / 13,579.5 = 35.6%; Other FY2023 381.1 / 259.4 - 1 = +46.9%; gross margin 1,598.8 / 2,814.0 = 56.8% (FY2015), 2,699.5 / 4,568.9 = 59.1% (FY2019); FY2026 4,830.8 / 4,061.6 - 1 = +18.9%; FY2015-FY2026 4,830.8 / 366.2 = 13.2 times; EPS 3.66 / 0.224 = 16.3 times. Operating income (no line reported): gross profit 8,324.4 - R&D 1,532.1 - SG&A 1,131.5 = 5,660.8 (FY2026), 5,660.8 / 13,579.5 = 41.7%; interest cover 5,660.8 / 284.4 = about 20 times. Segments FY2026: Semiconductor Process Control 12,244.7 / 13,579.5 = 90.2% of revenue; segment gross profit 12,244.7 - 4,453.6 = 7,791.1, 7,791.1 / 12,244.7 = 63.6%; segment profit 5,482.8 / 12,244.7 = 44.8%; 5,482.8 / 5,655.4 = 96.9% of segment profit; Specialty Semiconductor Process 64.6 / 584.1 = 11.1%, gross 278.8 / 584.1 = 47.7% (FY2021 206.7 / 369.2 = 56.0%); PCB and Component Inspection 108.0 / 750.4 = 14.4%, gross 385.3 / 750.4 = 51.3% (FY2024 159.0 / 552.5 = 28.8%); smaller segments 64.6 + 108.0 = 172.6; SSP segment gross margin FY2022 242.5 / 456.6 = 53.1%, FY2023 281.9 / 543.4 = 51.9%, FY2024 282.9 / 528.7 = 53.5%, FY2025 303.9 / 587.1 = 51.8%; Orbotech segments revenue less product categories 1,334.5 - (502.5 + 460.3) = 371.7; process control share of research 1,341.3 / 1,532.1 = 87.5%, almost nine-tenths; SG&A 1,131.5 / 13,579.5 = 8.3%; segment revenue 584.1 + 750.4 = 1,334.5. Process control segment research 1,341.3 / 12,244.7 = 11%; segment revenue growth 12,244.7 / 10,947.4 - 1 = +11.9%; SSP products 502.5 / 584.1 = 86% of segment revenue, research 59.4 / 584.1 = 10%; PCI Q4 241.1 / 750.4 = 32% of the year; process control lines FY2019 (1,630.9 + 1,161.3) / 4,568.9 = 61.1%; patterning within process control lines 2,791.1 / (4,336.7 + 2,791.1) = 39.2% (FY2023), 2,706.8 / (6,630.8 + 2,706.8) = 29.0% (FY2026); services share FY2019 1,176.7 / 4,568.9 = 25.8%; capital spending 375.9 / 45.8 = 8.2 times; peers 656.33 + 393.13 + 383.87 = 1,433.3, 1,433.3 / 245.24 = 5.8 times; FY2015 customers 15 + 12 + 11 = 38%. Process control segment gross margin FY2018 2,554.2 / 3,944.0 = 64.8%; FY2019 2,590.4 / 4,080.8 = 63.5%; FY2020 3,028.2 / 4,745.4 = 63.8%; FY2021 3,705.2 / 5,734.8 = 64.6%; FY2022 5,167.7 / 7,924.8 = 65.2%; FY2023 5,957.6 / 9,324.2 = 63.9%; FY2024 5,629.3 / 8,733.6 = 64.5%; FY2025 7,024.6 / 10,947.4 = 64.2%. Process control revenue FY2024 8,733.6 / 9,324.2 - 1 = -6.3%. Orbotech-related goodwill impairments 256.6 + 289.5 + 239.1 = 785.2. Research: 1,532.1 / 530.6 = 2.9 times; 530.6 / 2,814.0 = 18.9% (FY2015); 526.7 / 3,480.0 = 15.1% (FY2017); 711.0 / 4,568.9 = 15.6% (FY2019); 928.5 / 6,918.7 = 13.4% (FY2021); 1,296.7 / 10,496.1 = 12.4% (FY2023); 1,279.0 / 9,812.2 = 13.0% (FY2024); 1,532.1 / 13,579.5 = 11.3% (FY2026); FY2016 481.3 against 530.6 and FY2024 1,279.0 / 1,296.7 - 1 = -1.4%; research staff 27% x 17,000 = about 4,600. Product categories (FY2019-FY2026): wafer inspection 6,630.8 / 1,630.9 = 4.1 times, 22.2% a year; FY2025 6,198.8 / 4,333.3 - 1 = +43.1%; FY2026 6,630.8 / 6,198.8 - 1 = +7.0%; share 1,630.9 / 4,568.9 = 35.7% (FY2019), 6,198.8 / 12,156.2 = 51.0% (FY2025), 6,630.8 / 13,579.5 = 48.8% (FY2026). Patterning 2,706.8 / 1,161.3 = 2.3 times, 12.9% a year; FY2022 2,050.0 / 1,506.0 - 1 = +36.1%; FY2023 2,791.1 / 2,050.0 - 1 = +36.2%; FY2024 2,054.4 / 2,791.1 - 1 = -26.4%; FY2025 2,196.3 / 2,054.4 - 1 = +6.9%; FY2026 2,706.8 / 2,196.3 - 1 = +23.2%; share 2,791.1 / 10,496.1 = 26.6% (FY2023), 2,196.3 / 12,156.2 = 18.1% (FY2025), 2,706.8 / 13,579.5 = 19.9% (FY2026); process control lines 48.8 + 19.9 = 68.7%. SSP products 502.5 / 13,579.5 = 3.7%. PCI products 460.3 / 13,579.5 = 3.4%; FY2025 355.9 / 291.2 - 1 = +22.2%; FY2026 460.3 / 355.9 - 1 = +29.3%. Services 3,125.9 / 1,176.7 = 2.7 times, (3,125.9 / 1,176.7) ^ (1/7) - 1 = 15.0% a year; growth FY2020 +25.6%, FY2021 +13.6%, FY2022 +13.8%, FY2023 +10.8%, FY2024 2,329.6 / 2,117.0 - 1 = +10.0%, FY2025 +15.2%, FY2026 3,125.9 / 2,683.3 - 1 = +16.5%; FY2024 increase 2,329.6 - 2,117.0 = 212.6; share 2,117.0 / 10,496.1 = 20.2% (FY2023), 2,329.6 / 9,812.2 = 23.7% (FY2024), 3,125.9 / 13,579.5 = 23.0% (FY2026). Product revenue FY2023 10,496.1 - 2,117.0 = 8,379.1; FY2024 fall 8,379.1 - 7,482.7 = 896.4. A one-third fall in product revenue 10,453.5 / 3 = 3,484.5 against a year of 15% service growth 3,125.9 x 0.15 = 469, less than a seventh. Other 153.1 / 381.1 - 1 = -60%; 153.1 / 13,579.5 = 1.1%; FY2024 333.2 / 381.1 - 1 = -12.6%; FY2025 204.6 / 333.2 - 1 = -38.6%; FY2026 153.1 / 204.6 - 1 = -25.2%. Deferred system and service revenue 932.9 + 604.1 + 238.1 = 1,775.1, about $1.8 billion. Unrecognised contract price 1,775.1 / 3,125.9 x 12 = about 7 months of service revenue. Region: Taiwan FY2024 1,738.1 / 2,493.4 - 1 = -30.3%; FY2026 against FY2024 3,643.7 / 1,738.1 - 1 = +110%; FY2025 3,205.4 / 1,738.1 - 1 = +84.4%; FY2023 2,493.4 / 2,528.5 - 1 = -1.4%. Korea FY2019 584.1 / 1,178.6 - 1 = -50%; FY2024 906.9 / 1,895.7 - 1 = -52%; share 1,178.6 / 4,036.7 = 29.2% (FY2018), 584.1 / 4,568.9 = 12.8% (FY2019), 1,895.7 / 10,496.1 = 18.1% (FY2023), 906.9 / 9,812.2 = 9.2% (FY2024), 1,833.8 / 13,579.5 = 13.5% (FY2026). China FY2025 4,042.6 / 4,196.7 - 1 = -3.7%; FY2026 4,048.4 / 4,042.6 - 1 = +0.1%; China plus Taiwan 29.8% + 26.8% = 56.6%; Q4 FY2026 China 4,048.4 - 3,091.6 = 956.7, 956.7 / 3,657.6 = 26.2%. Backlog 12,570 / 7,860 - 1 = +59.9%; 12,570 / 13,579.5 = 93% of revenue; unrecognised contract price 1,775.1 / 12,570 = 14% of backlog. Advanced packaging about 1,000 / 13,579.5 = about 7% of revenue. Quarter: Q4 FY2026 revenue 3,657.6 / 3,174.7 - 1 = +15.2%; 3,657.6 / 3,415.1 - 1 = +7.1%; service 820.4 / 702.6 - 1 = +16.8%; process control 3,256.8 / 2,877.6 - 1 = +13.2%; PCB and Component Inspection 241.1 / 154.1 - 1 = +56.5%; GAAP gross margin (3,657.6 - 1,413.1) / 3,657.6 = 61.4%. Guidance midpoint 4,000 / 3,209.7 - 1 = +24.6%; 4,000 / 3,657.6 - 1 = +9.4%. Consensus fiscal 2027 18,110 / 13,579.5 - 1 = +33.4%; EPS 5.45 / 3.66 - 1 = +49%. The 2030 model at 13% a year: 13,579.5 x 1.13 ^ 2 = 17,340 (FY2028); 13,579.5 x 1.13 ^ 5 = about 25,000 (FY2031). Cash and capital: free cash flow 4,143.1 - 375.9 = 3,767.1; capital returns 2,289.8 + 1,057.8 = 3,347.6, 3,347.6 / 3,767.1 = 88.9%; dividends 1,057.8 / 4,830.8 = 21.9% of net income; buybacks 2,289.8 / 1,057.8 = 2.2 times dividends; capital spending 375.9 / 13,579.5 = 2.8% of revenue; operating cash flow 3,308.6 / 2,761.9 = 120% (FY2024), 4,081.9 / 4,061.6 = 100% (FY2025), 4,143.1 / 4,830.8 = 86% (FY2026); operating cash flow growth 4,143.1 / 4,081.9 - 1 = +1.5%; net income less operating cash flow 4,830.8 - 4,143.1 = 687.7; receivables 2,889.2 / 2,263.9 - 1 = +27.6%, an increase of 625.3; inventories 3,648.5 - 3,212.1 = 436.4; together 1,061.7. FY2015 dividends paid 3,041.1 / 366.2 = 8.3 times net income. Buybacks FY2015-FY2026 602.9 + 181.7 + 25.0 + 203.2 + 1,095.2 + 829.1 + 938.6 + 3,967.8 + 1,311.9 + 1,735.7 + 2,149.9 + 2,289.8 = 15,330.8; dividends paid 3,041.1 + 346.3 + 344.0 + 402.1 + 472.3 + 522.4 + 559.4 + 638.5 + 732.6 + 773.0 + 904.6 + 1,057.8 = 9,794.1. Diluted shares 1,319.6 / 1,637.0 - 1 = -19.4%. Net debt 5,887.4 - 1,649.8 - 3,252.6 = 985.0 (FY2026); 5,884.3 - 2,078.9 - 2,415.7 = 1,389.7 (FY2025); 6,630.1 - 1,977.1 - 2,526.9 = 2,126.1 (FY2024); 985.0 / 3,767.1 = 26% of free cash flow. Return on equity 4,830.8 / ((4,692.5 + 6,349.8) / 2 = 5,521.2) = 87.5%; FY2025 4,061.6 / ((3,368.3 + 4,692.5) / 2) = 100.8%; FY2024 2,761.9 / ((2,919.8 + 3,368.3) / 2) = 87.9%. Buyback authorisation 9,740 / 245,240 = 4%; 9,740 / (0.9 x 3,767.1) = 2.9 years; 9,740 / 571.0 = 17 quarters. Valuation: market value 245,240 / 383,870 = 0.64 (Applied Materials); 656,330 / 245,240 = 2.7 (ASML); 245,240 / 14,050 = 17.5 (Onto Innovation); 393,130 / 245,240 = 1.6 (Lam Research); 245,240 / 394,116 - 1 = -38% (June to September 2026); 394,116 / 118,454 = 3.3 times (June 2025 to June 2026); price 187.92 / 307.37 - 1 = -38.9%; 187.92 / 227.35 - 1 = -17% (June buyback price); 227.35 / 187.92 = 1.21 (21% more shares); free cash flow yield 3,767.1 / 245,240 = 1.5%; research 1,532.1 / 245,240 = 0.6% of KLA market value and 1,532.1 / 14,050 = 10.9%, about a ninth, of Onto Innovation's; revenue 13,579.5 / Lam Research 23,232.7 = 58%; market value 245,240 / 393,130 = 62%; buybacks 2,289.8 / 187.92 = 12.2 million shares at the September price, 12.2 / 1,319.6 = 0.9%; authorisation 9,740 / 2,289.8 = 4.3 years at the fiscal 2026 pace; P/E 245,240 / 4,830.8 = 50.8; P/S 245,240 / 13,579.5 = 18.1. Gross margin gap 61.3% less Lam Research about 50% = about 11 points - cash flow, capital returns, balance sheet, per-share figures and valuation. — FY2015-FY2026 · publ. September 2026 · source ↗
    Method: Arithmetic on figures reported in KLA's Forms 10-K and 10-Q, quarterly results releases, XBRL filings and market data; operands shown in the source line.
Sources
Generated September 28, 2026