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Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.

Economic Profit
Net Operating Profit after Taxes (NOPAT)
Cash Operating Taxes
Invested Capital
Cost of Capital
Economic Spread Ratio
Economic Profit Margin

KLA Corp., economic profit calculation

US$ in thousands

12 months ended:	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net operating profit after taxes (NOPAT)¹	5,068,432)	3,852,307)	3,284,868)	3,464,285)	3,432,493)	2,157,964)
Cost of capital²	21.67%	21.25%	20.91%	20.62%	20.09%	20.76%
Invested capital³	10,301,582)	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)

Economic profit⁴	2,835,692)	1,888,001)	1,427,832)	1,706,441)	1,810,344)	741,771)

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).

¹ NOPAT. See details »

² Cost of capital. See details »

³ Invested capital. See details »

⁴ 2026 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 5,068,432 – 21.67% × 10,301,582 = 2,835,692

The analysis of economic value added from 2021 to 2026 reveals a consistent ability to generate economic profit, indicating that the organization successfully earns returns in excess of its cost of capital. Despite periodic fluctuations in operating performance, the overall trajectory shows significant expansion in value creation for shareholders.

Net Operating Profit After Taxes (NOPAT): NOPAT exhibits a strong upward trend, growing from 2,157,964 thousand USD in 2021 to 5,068,432 thousand USD by 2026. A period of relative stagnation and a slight decline is observed between 2023 and 2024, where profit dipped to 3,284,868 thousand USD, before recovering sharply in the subsequent two years. This suggests a volatile but generally expanding operational profitability base.
Invested Capital and Cost of Capital: Invested capital has increased steadily each year, rising from 6,820,696 thousand USD in 2021 to 10,301,582 thousand USD in 2026. Concurrently, the cost of capital has remained elevated and relatively stable, fluctuating within a narrow band between 20.09% and 21.67%. The gradual increase in the cost of capital toward the end of the period places a higher hurdle on new investments to remain value-accretive.
Economic Profit Trends: Economic profit demonstrates substantial growth over the six-year period, starting at 741,771 thousand USD in 2021 and reaching 2,835,692 thousand USD by 2026. A notable peak occurred in 2022, followed by a two-year contraction phase where economic profit declined to 1,427,832 thousand USD in 2024. This decline was driven by the combination of stagnant NOPAT and a growing capital base. However, a robust recovery is evident in 2025 and 2026, where economic profit accelerated, suggesting that the growth in operating profit has significantly outpaced the cost of the additional capital employed.

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KLA Corp., NOPAT calculation

US$ in thousands

12 months ended:	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income attributable to KLA	4,830,771)	4,061,643)	2,761,896)	3,387,277)	3,321,807)	2,078,292)
Deferred income tax expense (benefit)¹	87,017)	(244,806)	(138,878)	(355,153)	(353,780)	(45,622)
Increase (decrease) in allowance for credit losses²	(2,985)	1,233)	(850)	13,001)	2,595)	6,214)
Increase (decrease) in deferred system and service revenue³	61,450)	(68,553)	537,235)	237,683)	339,621)	1,648)
Increase (decrease) in equity equivalents⁴	145,482)	(312,126)	397,507)	(104,469)	(11,564)	(37,760)
Interest expense	284,440)	302,166)	311,253)	296,940)	160,339)	157,328)
Interest expense, operating lease liability⁵	9,885)	8,283)	8,149)	5,793)	2,476)	1,690)
Adjusted interest expense	294,325)	310,449)	319,402)	302,733)	162,815)	159,018)
Tax benefit of interest expense⁶	(61,808)	(65,194)	(67,074)	(63,574)	(34,191)	(33,394)
Adjusted interest expense, after taxes⁷	232,517)	245,255)	252,327)	239,159)	128,624)	125,624)
(Gain) loss on marketable securities	(587)	(59)	103)	986)	306)	(253)
Interest income	(177,055)	(180,276)	(160,688)	(74,095)	(8,695)	(8,929)
Investment income, before taxes	(177,642)	(180,335)	(160,585)	(73,109)	(8,389)	(9,182)
Tax expense (benefit) of investment income⁸	37,305)	37,870)	33,723)	15,353)	1,762)	1,928)
Investment income, after taxes⁹	(140,337)	(142,465)	(126,862)	(57,756)	(6,627)	(7,254)
Net income (loss) attributable to noncontrolling interest	—)	—)	—)	74)	253)	(939)
Net operating profit after taxes (NOPAT)	5,068,432)	3,852,307)	3,284,868)	3,464,285)	3,432,493)	2,157,964)

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).

¹ Elimination of deferred tax expense. See details »

² Addition of increase (decrease) in allowance for credit losses.

³ Addition of increase (decrease) in deferred system and service revenue.

⁴ Addition of increase (decrease) in equity equivalents to net income attributable to KLA.

⁵ 2026 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 264,298 × 3.74% = 9,885

⁶ 2026 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 294,325 × 21.00% = 61,808

⁷ Addition of after taxes interest expense to net income attributable to KLA.

⁸ 2026 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 177,642 × 21.00% = 37,305

⁹ Elimination of after taxes investment income.

An analysis of the financial performance from June 30, 2021, to June 30, 2026, reveals a general upward trajectory in both Net Operating Profit After Taxes (NOPAT) and net income, despite a period of volatility between 2023 and 2024.

NOPAT Growth Trends: A substantial increase in NOPAT is observed between 2021 and 2022, rising from US$ 2,157,964 thousand to US$ 3,432,493 thousand. This growth plateaued in 2023 with a marginal increase to US$ 3,464,285 thousand, followed by a slight contraction in 2024 to US$ 3,284,868 thousand. A strong recovery is projected for the subsequent period, with NOPAT expected to reach US$ 3,852,307 thousand by June 2025 and US$ 5,068,432 thousand by June 2026.
Comparative Analysis of NOPAT and Net Income: For the majority of the observed period, NOPAT remains higher than the net income attributable to the company, indicating that operating performance is the primary driver of value. However, a notable divergence occurs in 2024, where the gap between NOPAT and net income widens significantly, with NOPAT exceeding net income by approximately US$ 522,972 thousand. By 2025, a reversal is observed where net income is projected to exceed NOPAT, suggesting a potential increase in non-operating income or a reduction in non-operating expenses during that fiscal year.
Profitability Forecast and Momentum: The projections for 2025 and 2026 indicate an acceleration in profitability. The anticipated increase in NOPAT to over US$ 5 billion by 2026 represents a significant expansion compared to the 2021 baseline. This upward momentum suggests an expected improvement in operational efficiency or an increase in market demand for the company's core offerings, which is expected to drive higher economic value added in the long term.

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KLA Corp., cash operating taxes calculation

US$ in thousands

12 months ended:	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Provision for income taxes	775,154)	582,805)	428,136)	401,839)	167,177)	283,101)
Less: Deferred income tax expense (benefit)	87,017)	(244,806)	(138,878)	(355,153)	(353,780)	(45,622)
Add: Tax savings from interest expense	61,808)	65,194)	67,074)	63,574)	34,191)	33,394)
Less: Tax imposed on investment income	37,305)	37,870)	33,723)	15,353)	1,762)	1,928)
Cash operating taxes	712,640)	854,935)	600,366)	805,213)	553,387)	360,189)

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 analysis of tax-related expenditures reveals a divergent relationship between accounting provisions and actual cash outflows over the period from June 2021 to June 2026. While the provision for income taxes follows a generally ascending trajectory after an initial decline, cash operating taxes exhibit significant volatility with alternating periods of growth and contraction.

Provision for Income Taxes Trend: An initial reduction in the provision for income taxes is observed between June 2021 and June 2022, where values decreased from 283,101 to 167,177 thousand dollars. Following this trough, a consistent upward trend is evident, with the provision increasing steadily each year to reach a peak of 775,154 thousand dollars by June 2026. This represents a substantial long-term increase in the forecasted tax obligations.
Cash Operating Taxes Volatility: Cash operating taxes demonstrate a less linear progression compared to tax provisions. A period of rapid growth occurred between 2021 and 2023, with expenditures rising from 360,189 to 805,213 thousand dollars. However, this was followed by a sharp decline in 2024 to 600,366 thousand dollars, a subsequent peak in 2025 at 854,935 thousand dollars, and a final decrease to 712,640 thousand dollars in 2026.
Comparative Analysis of Tax Outflows: For the majority of the analyzed period, cash operating taxes consistently exceeded the provision for income taxes, indicating that actual cash tax payments were higher than the accounting expense recognized in the income statement. This gap was most pronounced in June 2023, where cash taxes were approximately double the provision. However, a convergence is observed by June 2026, where the provision for income taxes (775,154 thousand dollars) surpasses the cash operating taxes (712,640 thousand dollars) for the first time in the series.

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KLA Corp., invested capital calculation (financing approach)

US$ in thousands

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Short-term debt	—)	—)	—)	—)	—)	20,000)
Current portion of long-term debt	—)	—)	749,936)	—)	—)	—)
Long-term debt, excluding current portion	5,887,415)	5,884,257)	5,880,199)	5,890,736)	6,660,718)	3,422,767)
Operating lease liability¹	264,298)	204,025)	189,508)	172,396)	113,587)	103,061)
Total reported debt & leases	6,151,713)	6,088,282)	6,819,643)	6,063,132)	6,774,305)	3,545,828)
Total KLA stockholders’ equity	6,349,820)	4,692,453)	3,368,328)	2,919,753)	1,401,351)	3,377,554)
Net deferred tax (assets) liabilities²	(563,576)	(658,825)	(428,599)	(287,654)	79,764)	380,162)
Allowance for credit losses³	31,030)	34,015)	32,782)	33,632)	20,631)	18,036)
Deferred system and service revenue⁴	1,775,139)	1,713,689)	1,782,242)	1,245,007)	1,007,324)	667,703)
Equity equivalents⁵	1,242,593)	1,088,879)	1,386,425)	990,985)	1,107,719)	1,065,901)
Accumulated other comprehensive (income) loss, net of tax⁶	34,453)	(1,201)	49,075)	36,341)	27,471)	75,557)
Non-controlling interest in consolidated subsidiaries	—)	—)	—)	—)	(2,261)	(1,912)
Adjusted total KLA stockholders’ equity	7,626,866)	5,780,131)	4,803,828)	3,947,079)	2,534,280)	4,517,100)
Construction-in-process⁷	(224,431)	(207,807)	(215,006)	(168,817)	(110,079)	(182,320)
Marketable securities⁸	(3,252,566)	(2,415,715)	(2,526,866)	(1,315,294)	(1,123,100)	(1,059,912)
Invested capital	10,301,582)	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)

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).

¹ Addition of capitalized operating leases.

² Elimination of deferred taxes from assets and liabilities. See details »

³ Addition of allowance for doubtful accounts receivable.

⁴ Addition of deferred system and service revenue.

⁵ Addition of equity equivalents to total KLA stockholders’ equity.

⁶ Removal of accumulated other comprehensive income.

⁷ Subtraction of construction-in-process.

⁸ Subtraction of marketable securities.

Invested capital exhibits a consistent upward trajectory over the six-year period, increasing from 6.82 billion USD in June 2021 to a projected 10.30 billion USD by June 2026. This steady expansion indicates a progressive increase in the total capital employed to support operations and growth objectives.

Invested Capital Trends: The total invested capital grew by approximately 51% between 2021 and 2026. The most significant year-over-year increase occurred between 2021 and 2022, followed by a period of moderate annual growth and a projected acceleration in the final year of the sequence.
Debt and Lease Obligations: Total reported debt and leases demonstrated significant volatility. A sharp increase was observed in 2022, where obligations rose from 3.55 billion USD to 6.77 billion USD. Subsequent years showed fluctuations, with a secondary peak in 2024 at 6.82 billion USD, before projecting a stabilization near 6.15 billion USD by 2026.
Stockholders' Equity Analysis: Stockholders' equity experienced a substantial contraction in 2022, falling from 3.38 billion USD to 1.40 billion USD. This was followed by a sustained recovery, with equity returning to 2021 levels by June 2024. Projections indicate a strong growth phase thereafter, reaching 6.35 billion USD by June 2026.
Capital Structure Evolution: The drivers of invested capital shifted markedly over the period. In 2022, the expansion of the capital base was driven almost exclusively by increased debt, which offset the decline in equity. By contrast, the growth projected for 2025 and 2026 is primarily fueled by the expansion of stockholders' equity, signaling a transition toward a more equity-funded capital structure.

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KLA Corp., cost of capital calculations

Jun 30, 2026

	Capital (fair value)¹	Weights					Cost of capital
Equity²	252,450,969)	252,450,969)	÷	258,195,267)	=	0.98	0.98	×	22.08%	=	21.59%
Debt³	5,480,000)	5,480,000)	÷	258,195,267)	=	0.02	0.02	×	4.67% × (1 – 21.00%)	=	0.08%
Operating lease liability⁴	264,298)	264,298)	÷	258,195,267)	=	0.00	0.00	×	3.74% × (1 – 21.00%)	=	0.00%
Total:	258,195,267)					1.00					21.67%

Based on: 10-K (reporting date: 2026-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2025

	Capital (fair value)¹	Weights					Cost of capital
Equity²	120,718,261)	120,718,261)	÷	126,462,286)	=	0.95	0.95	×	22.08%	=	21.08%
Debt³	5,540,000)	5,540,000)	÷	126,462,286)	=	0.04	0.04	×	4.67% × (1 – 21.00%)	=	0.16%
Operating lease liability⁴	204,025)	204,025)	÷	126,462,286)	=	0.00	0.00	×	4.06% × (1 – 21.00%)	=	0.01%
Total:	126,462,286)					1.00					21.25%

Based on: 10-K (reporting date: 2025-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2024

	Capital (fair value)¹	Weights					Cost of capital
Equity²	94,568,003)	94,568,003)	÷	101,017,511)	=	0.94	0.94	×	22.08%	=	20.67%
Debt³	6,260,000)	6,260,000)	÷	101,017,511)	=	0.06	0.06	×	4.67% × (1 – 21.00%)	=	0.23%
Operating lease liability⁴	189,508)	189,508)	÷	101,017,511)	=	0.00	0.00	×	4.30% × (1 – 21.00%)	=	0.01%
Total:	101,017,511)					1.00					20.91%

Based on: 10-K (reporting date: 2024-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2023

	Capital (fair value)¹	Weights					Cost of capital
Equity²	67,881,517)	67,881,517)	÷	73,743,913)	=	0.92	0.92	×	22.08%	=	20.33%
Debt³	5,690,000)	5,690,000)	÷	73,743,913)	=	0.08	0.08	×	4.64% × (1 – 21.00%)	=	0.28%
Operating lease liability⁴	172,396)	172,396)	÷	73,743,913)	=	0.00	0.00	×	3.36% × (1 – 21.00%)	=	0.01%
Total:	73,743,913)					1.00					20.62%

Based on: 10-K (reporting date: 2023-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2022

	Capital (fair value)¹	Weights					Cost of capital
Equity²	56,111,754)	56,111,754)	÷	62,890,341)	=	0.89	0.89	×	22.08%	=	19.70%
Debt³	6,665,000)	6,665,000)	÷	62,890,341)	=	0.11	0.11	×	4.55% × (1 – 21.00%)	=	0.38%
Operating lease liability⁴	113,587)	113,587)	÷	62,890,341)	=	0.00	0.00	×	2.18% × (1 – 21.00%)	=	0.00%
Total:	62,890,341)					1.00					20.09%

Based on: 10-K (reporting date: 2022-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

Jun 30, 2021

	Capital (fair value)¹	Weights					Cost of capital
Equity²	53,977,311)	53,977,311)	÷	58,080,372)	=	0.93	0.93	×	22.08%	=	20.52%
Debt³	4,000,000)	4,000,000)	÷	58,080,372)	=	0.07	0.07	×	4.36% × (1 – 21.00%)	=	0.24%
Operating lease liability⁴	103,061)	103,061)	÷	58,080,372)	=	0.00	0.00	×	1.64% × (1 – 21.00%)	=	0.00%
Total:	58,080,372)					1.00					20.76%

Based on: 10-K (reporting date: 2021-06-30).

¹ US$ in thousands

² Equity. See details »

³ Debt. See details »

⁴ Operating lease liability. See details »

KLA Corp., economic spread ratio calculation, comparison to benchmarks

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Selected Financial Data (US$ in thousands)
Economic profit¹	2,835,692)	1,888,001)	1,427,832)	1,706,441)	1,810,344)	741,771)
Invested capital²	10,301,582)	9,244,891)	8,881,599)	8,526,100)	8,075,406)	6,820,696)
Performance Ratio
Economic spread ratio³	27.53%	20.42%	16.08%	20.01%	22.42%	10.88%
Benchmarks
Economic Spread Ratio, Competitors⁴
Advanced Micro Devices Inc.	—	-21.52%	-27.79%	-29.22%	-28.83%	27.74%
Analog Devices Inc.	—	-12.06%	-14.18%	-10.09%	-11.45%	-14.69%
Applied Materials Inc.	—	17.02%	10.13%	13.12%	23.09%	18.58%
Broadcom Inc.	—	-3.00%	-10.42%	4.81%	3.56%	-5.68%
Intel Corp.	—	-18.76%	-30.08%	-19.97%	-13.18%	3.40%
Lam Research Corp.	11.66%	11.84%	-3.28%	2.09%	17.11%	12.45%
Marvell Technology Inc.	-8.94%	-26.67%	-26.71%	-22.37%	-25.14%	-26.87%
Micron Technology Inc.	—	-5.88%	-17.78%	-29.73%	-2.10%	-6.71%
NVIDIA Corp.	86.02%	117.11%	61.66%	-16.42%	25.78%	6.26%
Qualcomm Inc.	—	12.40%	7.60%	0.13%	26.57%	23.96%
Texas Instruments Inc.	—	2.38%	2.70%	12.32%	32.90%	31.53%

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).

¹ Economic profit. See details »

² Invested capital. See details »

³ 2026 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × 2,835,692 ÷ 10,301,582 = 27.53%

⁴ Click competitor name to see calculations.

The financial trajectory from June 2021 to June 2026 exhibits a general trend of expansion in both absolute value creation and capital deployment, characterized by a period of mid-term volatility followed by accelerated growth.

Economic Profit: A significant increase is observed between 2021 and 2022, with economic profit rising from 741,771 thousand USD to 1,810,344 thousand USD. This growth was followed by a contraction period through 2024, where values declined to 1,427,832 thousand USD. A robust recovery occurs in the subsequent years, resulting in a peak of 2,835,692 thousand USD by June 2026.
Invested Capital: Invested capital demonstrates a consistent and linear upward trend throughout the analyzed period. Beginning at 6,820,696 thousand USD in 2021, the capital base expanded steadily each year, reaching 10,301,582 thousand USD by June 2026. This indicates a sustained increase in the total resources deployed into the business.
Economic Spread Ratio: The economic spread ratio reflects the efficiency of value generation over the cost of capital. Following an initial surge to 22.42% in 2022, the ratio underwent a downward trend, bottoming at 16.08% in 2024. A subsequent reversal is evident, with the ratio climbing to 20.42% in 2025 and achieving its maximum value of 27.53% in 2026.

The correlation between the steady growth in invested capital and the eventual expansion of the economic spread ratio suggests that capital deployments made during the 2021-2024 period reached optimal productivity by 2026. The substantial increase in the spread ratio in the final period indicates a widening margin between the return on invested capital and the cost of capital, signaling an acceleration in economic value creation.

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KLA Corp., economic profit margin calculation, comparison to benchmarks

	Jun 30, 2026	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Selected Financial Data (US$ in thousands)
Economic profit¹	2,835,692)	1,888,001)	1,427,832)	1,706,441)	1,810,344)	741,771)

Revenues	13,579,476)	12,156,162)	9,812,247)	10,496,056)	9,211,883)	6,918,734)
Add: Increase (decrease) in deferred system and service revenue	61,450)	(68,553)	537,235)	237,683)	339,621)	1,648)
Adjusted revenues	13,640,926)	12,087,609)	10,349,482)	10,733,739)	9,551,504)	6,920,382)
Performance Ratio
Economic profit margin²	20.79%	15.62%	13.80%	15.90%	18.95%	10.72%
Benchmarks
Economic Profit Margin, Competitors³
Advanced Micro Devices Inc.	—	-38.35%	-62.75%	-74.56%	-71.49%	10.46%
Analog Devices Inc.	—	-46.03%	-65.46%	-36.23%	-42.92%	-94.41%
Applied Materials Inc.	—	12.08%	7.05%	8.79%	13.33%	11.85%
Broadcom Inc.	—	-7.05%	-28.49%	8.42%	6.66%	-13.37%
Intel Corp.	—	-41.39%	-52.27%	-33.91%	-18.54%	3.81%
Lam Research Corp.	9.07%	9.90%	-3.33%	1.83%	12.63%	10.04%
Marvell Technology Inc.	-20.78%	-82.42%	-92.37%	-75.59%	-112.19%	-82.48%
Micron Technology Inc.	—	-9.62%	-37.77%	-102.30%	-3.59%	-11.22%
NVIDIA Corp.	41.66%	42.41%	31.13%	-12.99%	17.28%	4.89%
Qualcomm Inc.	—	8.76%	6.02%	0.12%	17.70%	14.43%
Texas Instruments Inc.	—	3.86%	4.51%	15.88%	28.85%	28.21%

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).

¹ Economic profit. See details »

² 2026 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted revenues
= 100 × 2,835,692 ÷ 13,640,926 = 20.79%

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The financial trajectory from June 2021 to June 2026 is characterized by a general upward trend in both absolute economic value and adjusted revenues, despite a period of contraction between 2022 and 2024.

Economic Profit Performance: Economic profit experienced a substantial increase from 741.77 million in 2021 to 1.81 billion in 2022. This growth was followed by a period of decline, with values dropping to 1.71 billion in 2023 and further to 1.43 billion in 2024. A strong recovery phase is evident in the final two years, with economic profit rising to 1.89 billion in 2025 and reaching a peak of 2.84 billion in 2026.
Adjusted Revenue Growth: Adjusted revenues show a consistent long-term expansion, growing from 6.92 billion in 2021 to 13.64 billion by 2026. While the growth was steady through 2023, a slight contraction occurred in 2024, where revenues decreased to 10.35 billion. Growth resumed thereafter, with a notable increase to 12.09 billion in 2025.
Economic Profit Margin Analysis: The economic profit margin exhibits significant volatility, reflecting fluctuations in value creation efficiency. The margin rose sharply from 10.72% in 2021 to 18.95% in 2022. A subsequent downward trend was observed, with the margin falling to 15.90% in 2023 and 13.80% in 2024. A reversal of this trend occurred in 2025, leading to a period high of 20.79% in 2026, suggesting an increase in the efficiency of generating economic profit relative to revenues toward the end of the analyzed period.

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KLA Corp. (NASDAQ:KLAC)

Economic Value Added (EVA)

Economic Profit

Net Operating Profit after Taxes (NOPAT)

Cash Operating Taxes

Invested Capital

Cost of Capital

Economic Spread Ratio

Economic Profit Margin