Analysis for KLAC

📈 Growth & Financial Trajectory

Over the 7 quarters, revenues rose from roughly $2.57B in 2024-Q4 to $3.30B in 2026-Q2, a cumulative increase of about 28%, with a mid-period dip in 2025-Q3 to $3.06B. Net income grew from about $836M in the earliest quarter to $1.146B in the latest, up roughly 37%, despite quarterly volatility.

Net income trend plus cash flow resilience: cash from operating activities consistently around $1.0B–$1.3B per quarter, supporting growth and offsetting some investments. Overall the trajectory reflects steady scale-up with occasional cyclicality.

💰 Margins & Cash Flow

Gross profit hovered around $1.6B–$2.0B on revenues of $2.57B–$3.30B, implying gross margins in the 60% range. Operating leverage is visible as operating income tracks revenue trends (peaking around $1.27B in mid-cycle quarters). Net cash flow from operating activities generally exceeds $1.0B per quarter; investing cash flow is modestly negative; financing activity fluctuates, but positive free cash flow in several periods.

🛡️ Balance Sheet & Liquidity

Total assets run around $15–16B with current assets near $9.5–11B and long‑term debt near $5.9B. Current liabilities about $4.0B. With a current ratio around 2.5–3.0x, liquidity remains solid and debt levels are manageable relative to cash flows.

⚠️ Key Drivers & Risks

• Drivers: AI/data-center semiconductor equipment demand; ongoing foundry/IDM capex.
• Risks: Semiconductor cycle sensitivity and quarterly revenue volatility; valuation sensitivity to order book cycles and FX.