KLA Corporation (KLAC) has become one of Wall Street’s more closely watched semiconductor-equipment names as investors look for companies tied to the buildout of artificial intelligence infrastructure.
The company makes process-control and process-enabling tools used in semiconductor manufacturing, including equipment that helps chipmakers improve yields and detect production issues.
Morgan Stanley analyst Shane Brett raised the firm’s price target on KLA Corp. to $1,900 from $1,809 and kept an Overweight rating on the shares after the company’s latest earnings report.
The note, shared with TheStreet, offered investors a more balanced view than the higher target alone suggested, saying KLA Corp.’s earnings provided “something for both bulls and bears,” with a stronger 2027 growth outlook offset by continued 2026 underperformance.
KLA Corp.’s earnings support the long-term case
KLA Corporation reported fiscal third-quarter revenue of $3.415 billion for the period ended March 31, above the midpoint of its prior guidance range of $3.35 billion, plus or minus $150 million.
The company also reported GAAP diluted earnings of $9.12 per share and non-GAAP diluted earnings of $9.40 per share, both above the midpoints of its guidance ranges.
The company’s outlook also came in slightly ahead of Wall Street estimates. KLA Corp. guided for fiscal fourth-quarter revenue of $3.575 billion, plus or minus $200 million, and non-GAAP diluted earnings of $9.87 per share, plus or minus $1.00, while Reuters reported that analysts expected revenue of $3.54 billion and adjusted earnings of $9.80 per share, according to LSEG data.
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KLA Corporation also used the quarter to expand its capital-return plans. The company said its board approved a quarterly dividend increase to $2.30 per share beginning with the dividend expected to be declared in May 2026, along with an additional $7 billion authorization for stock repurchases.
The stock still fell nearly 9% in extended trading after the report, according to…
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