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KLA Corp. (NASDAQ:KLAC)

Common-Size Income Statement
Quarterly Data

KLA Corp., common-size consolidated income statement (quarterly data)

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3 months ended: Sep 30, 2026 Jun 30, 2026 Mar 31, 2026 Dec 31, 2025 Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020
Product 79.44 77.57 77.31 76.16 76.80 77.87 78.15 78.31 77.33 76.10 74.98 77.28 76.62 77.13 78.25 82.56 80.59 79.43 78.68 80.58 78.22 76.94 76.25 74.99 74.45
Service 20.56 22.43 22.69 23.84 23.20 22.13 21.85 21.69 22.67 23.90 25.02 22.72 23.38 22.87 21.75 17.44 19.41 20.57 21.32 19.42 21.78 23.06 23.75 25.01 25.55
Revenues 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%
Costs of revenues -38.15 -38.64 -38.88 -38.55 -38.73 -38.03 -38.38 -39.70 -40.38 -39.34 -42.12 -39.28 -39.50 -40.89 -41.33 -40.51 -38.22 -39.35 -38.98 -38.60 -39.04 -40.11 -39.34 -40.57 -40.33
Gross margin 61.85% 61.36% 61.12% 61.45% 61.27% 61.97% 61.62% 60.30% 59.62% 60.66% 57.88% 60.72% 60.50% 59.11% 58.67% 59.49% 61.78% 60.65% 61.02% 61.40% 60.96% 59.89% 60.66% 59.43% 59.67%
Research and development -9.55 -10.91 -11.38 -11.64 -11.23 -11.12 -11.04 -11.25 -11.37 -12.68 -13.63 -12.89 -12.98 -13.46 -13.49 -11.15 -11.69 -11.94 -12.46 -11.27 -12.39 -12.54 -13.25 -13.88 -14.24
Selling, general and administrative -7.29 -7.97 -8.52 -8.49 -8.38 -8.27 -8.13 -8.68 -8.83 -9.93 -10.06 -9.54 -10.00 -10.65 -9.80 -8.15 -9.32 -9.52 -9.46 -9.07 -9.27 -9.97 -10.15 -11.02 -11.22
Impairment of goodwill and purchased intangible assets 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -7.77 0.00 0.00 -2.99 -8.81 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Income from operations 45.01% 42.49% 41.21% 41.31% 41.66% 42.58% 42.45% 32.60% 39.41% 38.05% 31.20% 29.49% 37.51% 35.00% 35.38% 40.19% 40.77% 39.19% 39.10% 41.06% 39.29% 37.38% 37.26% 34.54% 34.21%
Interest expense -1.64 -2.00 -2.06 -2.11 -2.21 -2.30 -2.35 -2.44 -2.89 -3.22 -3.39 -2.98 -3.10 -3.12 -3.07 -2.49 -2.73 -1.78 -1.75 -1.61 -1.84 -2.08 -2.17 -2.36 -2.56
Loss on extinguishment of debt 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 -0.49 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00
Other income (expense), net 0.73 1.88 2.33 1.15 1.35 1.58 1.17 1.44 1.44 1.97 1.93 1.29 1.12 1.05 0.61 0.61 1.73 0.78 -0.38 -0.05 -0.68 1.51 0.41 -0.24 -0.21
Income before income taxes 44.10% 42.36% 41.49% 40.35% 40.80% 41.86% 41.28% 31.61% 37.96% 36.79% 29.75% 27.80% 35.53% 32.93% 32.91% 38.30% 39.28% 38.19% 36.98% 39.40% 36.78% 36.81% 35.50% 31.95% 31.44%
(Provision) benefit for income taxes -6.66 -5.09 -6.32 -5.60 -5.87 -3.97 -5.75 -4.81 -4.67 -4.23 -4.26 -4.37 -4.60 -3.86 -4.23 -5.50 -1.61 -5.80 -5.05 -8.90 14.50 -3.94 -4.06 -4.27 -4.14
Net income 37.44% 37.27% 35.17% 34.75% 34.93% 37.89% 35.53% 26.80% 33.29% 32.56% 25.49% 23.43% 30.93% 29.07% 28.69% 32.80% 37.66% 32.39% 31.93% 30.50% 51.27% 32.88% 31.44% 27.68% 27.31%
Net (income) loss attributable to non-controlling interest 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.02 0.02 0.03
Net income attributable to KLA 37.44% 37.27% 35.17% 34.75% 34.93% 37.89% 35.53% 26.80% 33.29% 32.56% 25.49% 23.43% 30.93% 29.07% 28.69% 32.80% 37.66% 32.39% 31.92% 30.50% 51.27% 32.87% 31.46% 27.70% 27.33%

Based on: 10-Q (reporting date: 2026-09-30), 10-K (reporting date: 2026-06-30), 10-Q (reporting date: 2026-03-31), 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).

The financial trajectory of the company is characterized by expanding operational efficiency and a shift in revenue composition. A general trend of increasing profitability is evident, as operating and net margins have climbed over the analyzed period, despite intermittent non-recurring charges.

Revenue Mix and Composition
Revenue streams show a dynamic shift between product and service contributions. Product revenue increased from 74.45% in September 2020 to a peak of 82.56% by December 2022, subsequently stabilizing between 76% and 79%. Conversely, service revenue declined from 25.55% to a low of 17.44% in December 2022 before returning to a range of 20% to 24%. This suggests a period of aggressive product growth followed by a re-balancing of the service portfolio.
Gross Margin Stability
Gross margins have remained remarkably resilient, generally fluctuating between 58% and 62%. While a temporary dip to 57.88% occurred in March 2024, the margin recovered to 61.85% by September 2026. This stability indicates strong pricing power and effective management of the cost of revenues, which has consistently hovered around 38% to 41% of total sales.
Operating Expense Efficiency
There is a clear downward trend in operating expenses as a percentage of revenue, indicating significant operating leverage. Research and development expenses decreased from 14.24% in September 2020 to 9.55% by September 2026. Similarly, selling, general, and administrative expenses declined from 11.22% to 7.29% over the same period. These reductions contributed directly to the expansion of the operational margin.
Operational Income and Non-Recurring Impacts
Income from operations grew from 34.21% to a peak of 45.01% by September 2026. However, this growth was interrupted by significant impairment charges for goodwill and intangible assets in December 2023 (-8.81%), March 2024 (-2.99%), and December 2024 (-7.77%). These impairments caused temporary contractions in operating income but did not disrupt the long-term upward trend of profitability.
Net Income and Tax Volatility
Net income attributable to the company generally trended upward, ending at 37.44% in September 2026. An anomalous spike to 51.27% occurred in September 2021, driven by a substantial tax benefit of 14.50% of revenues. Aside from this outlier and the aforementioned impairment charges, net margins have remained robust, supported by a gradual decrease in interest expenses as a percentage of revenue, which fell from 2.56% to 1.64%.

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