Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
KLA Corp., profitability ratios
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).
Profitability analysis from 2021 to 2026 indicates a period of strong operational efficiency characterized by stable gross margins and high returns on invested capital, despite a visible dip in performance during the 2024 fiscal year.
- Gross Profit Margin
- A consistent performance is observed, with the margin remaining stable around the 60% threshold. The ratio fluctuated minimally between 59.81% and 61.30%, suggesting a strong and steady ability to manage direct production costs relative to revenue.
- Operating and Net Profit Margins
- Both margins exhibit similar cyclical trends, peaking in 2022 before experiencing a contraction in 2024, where the operating margin fell to 34.10% and the net margin to 28.15%. However, a recovery trend is evident in the subsequent years, with the operating margin projected to reach its highest point of 41.69% by 2026.
- Return on Equity (ROE)
- An exceptional spike occurred in 2022, with ROE reaching 237.04%. Following this peak, a normalization trend is observed as the ratio declined toward 76.08% by 2026. Despite this descent from the 2022 outlier, the ROE remains substantially high, indicating efficient generation of profit from shareholders' equity.
- Return on Assets (ROA)
- Asset efficiency mirrors the trend seen in net profitability, with a notable decline to 17.90% in 2024. This was followed by a recovery to 25.28% in 2025 and a projected peak of 26.91% in 2026, demonstrating a return to high asset utilization and profitability.
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Return on Sales
Return on Investment
Gross Profit Margin
KLA Corp., gross 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) | |||||||
| Gross margin | 8,324,416) | 7,404,295) | 5,884,174) | 6,277,749) | 5,619,442) | 4,146,569) | |
| Revenues | 13,579,476) | 12,156,162) | 9,812,247) | 10,496,056) | 9,211,883) | 6,918,734) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 61.30% | 60.91% | 59.97% | 59.81% | 61.00% | 59.93% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 49.52% | 49.35% | 46.12% | 44.93% | 48.25% | |
| Analog Devices Inc. | — | 61.47% | 57.08% | 64.01% | 62.70% | 61.83% | |
| Applied Materials Inc. | — | 48.67% | 47.46% | 46.70% | 46.51% | 47.32% | |
| Broadcom Inc. | — | 67.77% | 63.03% | 68.93% | 66.55% | 61.36% | |
| Intel Corp. | — | 34.77% | 32.66% | 40.04% | 42.61% | 55.45% | |
| Lam Research Corp. | 50.47% | 48.71% | 47.32% | 44.62% | 45.69% | 46.53% | |
| Marvell Technology Inc. | 51.02% | 41.31% | 41.64% | 50.47% | 46.26% | 50.13% | |
| Micron Technology Inc. | — | 39.79% | 22.35% | -9.11% | 45.18% | 37.62% | |
| NVIDIA Corp. | 71.07% | 74.99% | 72.72% | 56.93% | 64.93% | 62.34% | |
| Qualcomm Inc. | — | 55.43% | 56.21% | 55.70% | 57.84% | 57.51% | |
| Texas Instruments Inc. | — | 57.02% | 58.14% | 62.90% | 68.76% | 67.47% | |
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 2026 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenues
= 100 × 8,324,416 ÷ 13,579,476 = 61.30%
2 Click competitor name to see calculations.
An analysis of the financial performance from June 30, 2021, to June 30, 2026, reveals a consistent growth trajectory in both total revenues and absolute gross margin, characterized by high stability in percentage-based profitability.
- Revenue Performance
- Revenues grew from 6.92 billion USD in 2021 to a projected 13.58 billion USD by 2026. While a slight contraction occurred in 2024, where revenues decreased to 9.81 billion USD from 10.50 billion USD in the previous year, the trend recovered strongly in the subsequent periods.
- Gross Profit Margin Stability
- The gross profit margin remained remarkably stable throughout the period, fluctuating within a narrow range between 59.81% and 61.30%. This consistency indicates an effective management of cost of goods sold relative to sales growth, regardless of the fluctuations in total revenue volume.
- Absolute Gross Margin Growth
- The absolute gross margin expanded from 4.15 billion USD in 2021 to 8.32 billion USD by 2026. The alignment between the absolute gross margin and revenue trends suggests that profitability is primarily driven by top-line growth rather than significant shifts in production efficiency or pricing strategy.
- Recent Trends and Projections
- A positive trend is observed in the final two years of the period, with the gross profit margin reaching its peak at 61.30% in 2026. This indicates a slight expansion in profitability coinciding with the highest recorded revenue levels.
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Operating Profit Margin
KLA Corp., operating 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) | |||||||
| Income from operations | 5,660,780) | 4,775,127) | 3,346,210) | 3,994,696) | 3,654,181) | 2,488,480) | |
| Revenues | 13,579,476) | 12,156,162) | 9,812,247) | 10,496,056) | 9,211,883) | 6,918,734) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 41.69% | 39.28% | 34.10% | 38.06% | 39.67% | 35.97% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 10.66% | 7.37% | 1.77% | 5.36% | 22.20% | |
| Analog Devices Inc. | — | 26.61% | 21.56% | 31.07% | 27.29% | 23.12% | |
| Applied Materials Inc. | — | 29.22% | 28.95% | 28.86% | 30.20% | 29.87% | |
| Broadcom Inc. | — | 39.89% | 26.10% | 45.25% | 42.84% | 31.03% | |
| Intel Corp. | — | -4.19% | -21.99% | 0.17% | 3.70% | 24.62% | |
| Lam Research Corp. | 35.29% | 32.01% | 28.61% | 29.69% | 31.24% | 30.64% | |
| Marvell Technology Inc. | 16.14% | -12.49% | -10.31% | 4.02% | -7.79% | -8.70% | |
| Micron Technology Inc. | — | 26.14% | 5.19% | -36.97% | 31.54% | 22.68% | |
| NVIDIA Corp. | 60.38% | 62.42% | 54.12% | 15.66% | 37.31% | 27.18% | |
| Qualcomm Inc. | — | 27.90% | 25.85% | 21.74% | 35.88% | 29.16% | |
| Texas Instruments Inc. | — | 34.06% | 34.94% | 41.85% | 50.63% | 48.84% | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 34.52% | 20.84% | 18.20% | 26.84% | 27.90% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 30.76% | 26.46% | 24.34% | 26.23% | 26.58% | |
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 2026 Calculation
Operating profit margin = 100 × Income from operations ÷ Revenues
= 100 × 5,660,780 ÷ 13,579,476 = 41.69%
2 Click competitor name to see calculations.
The operating profit margin exhibits a volatile yet generally upward trajectory over the six-year period from 2021 to 2026. While the company experienced a significant contraction in profitability during the 2024 fiscal year, the subsequent recovery indicates a strong capacity for operational scaling and margin expansion.
- Revenue and Operating Income Growth
- Total revenues grew from US$ 6.92 billion in 2021 to a peak of US$ 13.58 billion in 2026. This growth was mirrored by income from operations, which increased from US$ 2.49 billion to US$ 5.66 billion over the same period. A notable deviation occurred in 2024, where both revenues and operating income declined to US$ 9.81 billion and US$ 3.35 billion, respectively, before rebounding sharply in 2025 and 2026.
- Operating Profit Margin Volatility
- The operating profit margin fluctuated between a low of 34.10% in 2024 and a high of 41.69% in 2026. An initial increase was observed from 35.97% in 2021 to 39.67% in 2022, followed by a gradual decline over the next two years. The contraction in 2024 represents the most significant margin compression in the analyzed period, suggesting a period of increased operating costs relative to revenue generation.
- Efficiency Recovery and Peak Performance
- A robust recovery in operational efficiency is evident starting in 2025, with the margin returning to 39.28%. This trend culminated in 2026 with a margin of 41.69%, the highest level recorded in the data set. This progression indicates that the company successfully optimized its cost structure or improved its pricing power as it scaled revenues toward the US$ 13.58 billion mark.
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Net Profit Margin
KLA Corp., net 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) | |||||||
| Net income attributable to KLA | 4,830,771) | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | |
| Revenues | 13,579,476) | 12,156,162) | 9,812,247) | 10,496,056) | 9,211,883) | 6,918,734) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 35.57% | 33.41% | 28.15% | 32.27% | 36.06% | 30.04% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 12.51% | 6.36% | 3.77% | 5.59% | 19.24% | |
| Analog Devices Inc. | — | 20.58% | 17.35% | 26.94% | 22.88% | 19.00% | |
| Applied Materials Inc. | — | 24.67% | 26.41% | 25.86% | 25.31% | 25.53% | |
| Broadcom Inc. | — | 36.20% | 11.43% | 39.31% | 34.62% | 24.54% | |
| Intel Corp. | — | -0.51% | -35.32% | 3.11% | 12.71% | 25.14% | |
| Lam Research Corp. | 31.27% | 29.06% | 25.68% | 25.88% | 26.73% | 26.72% | |
| Marvell Technology Inc. | 32.58% | -15.35% | -16.95% | -2.76% | -9.44% | -9.34% | |
| Micron Technology Inc. | — | 22.84% | 3.10% | -37.54% | 28.24% | 21.16% | |
| NVIDIA Corp. | 55.60% | 55.85% | 48.85% | 16.19% | 36.23% | 25.98% | |
| Qualcomm Inc. | — | 12.51% | 26.03% | 20.19% | 29.27% | 26.94% | |
| Texas Instruments Inc. | — | 28.28% | 30.68% | 37.16% | 43.68% | 42.35% | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 29.97% | 14.42% | 16.64% | 25.04% | 25.45% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 25.66% | 20.48% | 20.24% | 22.27% | 23.48% | |
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 2026 Calculation
Net profit margin = 100 × Net income attributable to KLA ÷ Revenues
= 100 × 4,830,771 ÷ 13,579,476 = 35.57%
2 Click competitor name to see calculations.
The net profit margin demonstrates a cyclical pattern of expansion and contraction over the analyzed six-year period, while maintaining a high baseline of profitability consistently above 28%.
- Initial Expansion and Peak Profitability (2021-2022)
- A sharp increase in the net profit margin is observed, rising from 30.04% to a peak of 36.06%. During this interval, net income grew at a rate that significantly outpaced revenue growth, indicating enhanced operational efficiency or an increase in high-margin product mix.
- Margin Compression and Trough (2023-2024)
- A downward trend occurred between 2022 and 2024, with the margin declining to 32.27% and subsequently reaching a period low of 28.15%. The 2024 fiscal year is particularly notable for a simultaneous contraction in both total revenues and net income, suggesting that the decline in profitability was driven by a reduction in overall business volume alongside potential cost pressures.
- Recovery and Scalability (2025-2026)
- A robust recovery is evident in the final two years, as the net profit margin rebounded to 33.41% in 2025 and further expanded to 35.57% by 2026. This upward trajectory coincides with the highest recorded levels of revenue and net income in the series, suggesting that the company successfully leveraged its cost structure to regain pricing power or operational leverage as demand increased.
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Return on Equity (ROE)
KLA Corp., ROE 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) | |||||||
| Net income attributable to KLA | 4,830,771) | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | |
| Total KLA stockholders’ equity | 6,349,820) | 4,692,453) | 3,368,328) | 2,919,753) | 1,401,351) | 3,377,554) | |
| Profitability Ratio | |||||||
| ROE1 | 76.08% | 86.56% | 82.00% | 116.01% | 237.04% | 61.53% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 6.88% | 2.85% | 1.53% | 2.41% | 42.18% | |
| Analog Devices Inc. | — | 6.70% | 4.65% | 9.32% | 7.54% | 3.66% | |
| Applied Materials Inc. | — | 34.28% | 37.77% | 41.94% | 53.51% | 48.08% | |
| Broadcom Inc. | — | 28.45% | 8.71% | 58.70% | 50.62% | 26.99% | |
| Intel Corp. | — | -0.23% | -18.89% | 1.60% | 7.90% | 20.83% | |
| Lam Research Corp. | 58.26% | 54.33% | 44.82% | 54.94% | 73.35% | 64.85% | |
| Marvell Technology Inc. | 18.66% | -6.59% | -6.29% | -1.05% | -2.68% | -3.29% | |
| Micron Technology Inc. | — | 15.76% | 1.72% | -13.22% | 17.41% | 13.34% | |
| NVIDIA Corp. | 76.33% | 91.87% | 69.24% | 19.76% | 36.65% | 25.64% | |
| Qualcomm Inc. | — | 26.13% | 38.60% | 33.51% | 71.81% | 90.88% | |
| Texas Instruments Inc. | — | 30.73% | 28.39% | 38.53% | 60.02% | 58.27% | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 26.76% | 11.16% | 12.69% | 21.59% | 24.91% | |
| ROE, Industry | |||||||
| Information Technology | — | 34.38% | 28.82% | 31.26% | 38.03% | 41.64% | |
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 2026 Calculation
ROE = 100 × Net income attributable to KLA ÷ Total KLA stockholders’ equity
= 100 × 4,830,771 ÷ 6,349,820 = 76.08%
2 Click competitor name to see calculations.
Analysis of profitability metrics indicates a period of significant volatility followed by a stabilization phase in equity efficiency. Net income demonstrates a general upward trajectory over the observed period, while stockholders' equity experienced a substantial contraction in 2022 before entering a phase of consistent growth.
- Net Income Trends
- Net income attributable to shareholders grew from US$ 2.08 billion in 2021 to US$ 4.83 billion by 2026. While a contraction occurred in 2024, where income fell to US$ 2.76 billion, the subsequent recovery in 2025 and 2026 suggests strong earnings momentum.
- Stockholders' Equity Dynamics
- Total stockholders' equity exhibited a sharp decline in 2022, falling to US$ 1.40 billion from US$ 3.38 billion in the previous year. Following this trough, equity increased steadily every year, reaching US$ 6.35 billion by June 30, 2026, indicating a significant expansion of the capital base.
- Return on Equity (ROE) Interpretation
- The ROE peaked at an exceptional 237.04% in 2022, driven primarily by the simultaneous increase in net income and the drastic reduction in the equity denominator. As stockholders' equity expanded from 2023 through 2026, the ROE trended downward, normalizing to 76.08% by 2026. Despite this downward trend from the 2022 peak, the ROE remains consistently high, signifying a high level of efficiency in generating profit relative to shareholder investments.
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Return on Assets (ROA)
KLA Corp., ROA 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) | |||||||
| Net income attributable to KLA | 4,830,771) | 4,061,643) | 2,761,896) | 3,387,277) | 3,321,807) | 2,078,292) | |
| Total assets | 17,951,535) | 16,067,926) | 15,433,566) | 14,072,357) | 12,597,088) | 10,271,124) | |
| Profitability Ratio | |||||||
| ROA1 | 26.91% | 25.28% | 17.90% | 24.07% | 26.37% | 20.23% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 5.64% | 2.37% | 1.26% | 1.95% | 25.46% | |
| Analog Devices Inc. | — | 4.72% | 3.39% | 6.79% | 5.46% | 2.66% | |
| Applied Materials Inc. | — | 19.28% | 20.86% | 22.31% | 24.41% | 22.80% | |
| Broadcom Inc. | — | 13.52% | 3.56% | 19.33% | 15.69% | 8.91% | |
| Intel Corp. | — | -0.13% | -9.55% | 0.88% | 4.40% | 11.80% | |
| Lam Research Corp. | 30.88% | 25.10% | 20.42% | 24.02% | 26.78% | 24.59% | |
| Marvell Technology Inc. | 11.98% | -4.38% | -4.40% | -0.73% | -1.90% | -2.58% | |
| Micron Technology Inc. | — | 10.31% | 1.12% | -9.08% | 13.11% | 9.96% | |
| NVIDIA Corp. | 58.06% | 65.30% | 45.28% | 10.61% | 22.07% | 15.05% | |
| Qualcomm Inc. | — | 11.05% | 18.39% | 14.17% | 26.39% | 21.93% | |
| Texas Instruments Inc. | — | 14.46% | 13.51% | 20.12% | 32.16% | 31.48% | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 15.55% | 6.13% | 7.13% | 12.17% | 13.29% | |
| ROA, Industry | |||||||
| Information Technology | — | 15.31% | 11.80% | 12.34% | 14.33% | 14.52% | |
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 2026 Calculation
ROA = 100 × Net income attributable to KLA ÷ Total assets
= 100 × 4,830,771 ÷ 17,951,535 = 26.91%
2 Click competitor name to see calculations.
The analysis of profitability ratios reveals a period of volatility followed by a strong recovery in asset utilization efficiency. While total assets have maintained a consistent upward trajectory from June 30, 2021, through June 30, 2026, the return on assets (ROA) has fluctuated in response to varying levels of net income.
- Return on Assets (ROA) Trend
- The ROA began at 20.23% in 2021 and experienced an initial increase to 26.37% in 2022. A subsequent decline occurred over the following two years, reaching a period low of 17.90% in 2024. However, a significant recovery is observed in the final two years, with the ratio climbing to 25.28% in 2025 and peaking at 26.91% in 2026.
- Net Income Dynamics
- Net income attributable to the company demonstrated substantial growth between 2021 and 2023, rising from approximately $2.08 billion to $3.39 billion. A contraction occurred in 2024, where net income fell to $2.76 billion, directly contributing to the observed dip in ROA. This was followed by a sharp acceleration in profitability, with net income reaching $4.83 billion by June 30, 2026.
- Asset Base Expansion
- Total assets showed steady and uninterrupted growth throughout the observed period, increasing from $10.27 billion in 2021 to $17.95 billion in 2026. The consistent expansion of the asset base indicates ongoing investment in the company's operational capacity.
- Efficiency Correlation
- The divergence between steady asset growth and fluctuating net income explains the ROA variance. The dip in 2024 indicates a period where asset growth outpaced profit generation. Conversely, the recovery in 2025 and 2026 suggests that the company successfully leveraged its expanded asset base to generate higher net returns, achieving a higher level of operational efficiency than at the start of the period.
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