Stock Analysis on Net
Stock Analysis on Net

KLA Corp. (NASDAQ:KLAC)

Common-Size Income Statement

KLA Corp., common-size consolidated income statement

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12 months ended: Jun 30, 2026 Jun 30, 2025 Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021
Product 76.98 77.93 76.26 79.83 79.26 75.74
Service 23.02 22.07 23.74 20.17 20.74 24.26
Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Costs of revenues -38.70 -39.09 -40.03 -40.19 -39.00 -40.07
Gross margin 61.30% 60.91% 59.97% 59.81% 61.00% 59.93%
Research and development -11.28 -11.19 -13.03 -12.35 -12.00 -13.42
Selling, general and administrative -8.33 -8.47 -9.88 -9.40 -9.34 -10.55
Impairment of goodwill and purchased intangible assets 0.00 -1.97 -2.95 0.00 0.00 0.00
Income from operations 41.69% 39.28% 34.10% 38.06% 39.67% 35.97%
Interest expense -2.09 -2.49 -3.17 -2.83 -1.74 -2.27
Loss on extinguishment of debt 0.00 0.00 0.00 -0.13 0.00 0.00
Interest income 1.30 1.48 1.64 0.71 0.09 0.13
Foreign exchange gains (losses), net 0.12 -0.02 0.07 0.00 -0.04 -0.07
Net realized gains (losses) on sale of investments 0.00 0.00 0.00 -0.01 0.00 0.00
Other 0.26 -0.05 -0.13 0.30 -0.10 0.36
Other income (expense), net 1.69% 1.41% 1.58% 1.00% -0.05% 0.42%
Income before income taxes 41.28% 38.21% 32.51% 36.10% 37.88% 34.12%
Provision for income taxes -5.71 -4.79 -4.36 -3.83 -1.81 -4.09
Net income 35.57% 33.41% 28.15% 32.27% 36.06% 30.03%
Net (income) loss attributable to non-controlling interest 0.00 0.00 0.00 0.00 0.00 0.01
Net income attributable to KLA 35.57% 33.41% 28.15% 32.27% 36.06% 30.04%

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30).

The company demonstrates a consistent ability to maintain high gross margins and strong operational profitability over the analyzed period. Revenue composition remains dominated by product sales, though service revenues provide a steady secondary contribution. A notable recovery in net profitability is observed following a dip in 2024, driven by operational efficiencies and the cessation of specific impairment charges.

Revenue Composition and Gross Profitability
Product sales constitute the primary revenue driver, fluctuating between 75.74% and 79.83% of total revenues. Service revenues move inversely, maintaining a range between 20.17% and 24.26%. Gross margins exhibit remarkable stability, beginning at 59.93% in 2021 and trending slightly upward to 61.30% by 2026, indicating strong pricing power and effective cost of revenue management.
Operating Expense Trends
Research and development expenses as a percentage of revenue show a general downward trajectory, decreasing from 13.42% in 2021 to 11.28% in 2026. Similarly, selling, general, and administrative expenses declined from 10.55% to 8.33% over the same period. This suggests an improvement in operational leverage and scale efficiency.
Operating Income and Non-Recurring Impacts
Income from operations remained robust, peaking at 41.69% in 2026. A temporary contraction in operating margin occurred in 2024, falling to 34.10% due to impairment of goodwill and purchased intangible assets, which impacted the results by 2.95% in 2024 and 1.97% in 2025. Once these impairments subside, operating margins show a clear upward trend.
Financial and Net Performance
Interest expenses peaked at 3.17% of revenues in 2024 before declining to 2.09% by 2026. This is partially offset by a rising trend in interest income, which grew from 0.13% in 2021 to 1.30% in 2026. Net income attributable to the company reflects these dynamics, reaching a low of 28.15% in 2024 and recovering to 35.57% by 2026, reflecting a strong return to historical profitability levels.

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