KLA Corp. (NASDAQ:KLAC)

Gross Profit Margin

The gross profit margin shows a consistent increasing trend from 57.81% in September 2020 to a peak of 61.23% in December 2022. Following this peak, it experienced a slight decrease and stabilized around the high 59% to low 60% range through mid-2025. This pattern indicates improved cost efficiency or pricing power over the period, with slight fluctuations toward the latter years.

Operating Profit Margin

The operating profit margin demonstrated a clear upward trajectory from 25.87% in September 2020 to a peak of 40.05% in December 2022. Subsequently, there was a gradual decline to around 33-34% by late 2024, followed by a recovery to above 38% by mid-2025. This suggests operational leverage improvements initially, followed by some pressure on operating expenses or revenue, and a recent strengthening in profitability.

Net Profit Margin

Net profit margin also followed a generally positive trend, increasing from 20.96% in September 2020 to a high of 36.57% in December 2021. After peaking, it declined steadily to approximately 27% by late 2024 but then showed a recovery trend to over 33% by mid-2025. This reflects fluctuations in overall profitability possibly linked to changes in expenses, taxes, or non-operating items over time.

Return on Equity (ROE)

ROE exhibited significant volatility. Starting at 45.65% in September 2020, it rose sharply and irregularly, with an extraordinary spike to 237.04% in September 2022, followed by steep declines but maintaining high levels above 80% through mid-2025. The abnormal spike suggests a one-time event or anomaly impacting equity returns profoundly during that period. Overall, despite the volatility, ROE remained substantially elevated indicating strong profitability relative to shareholder equity.

Return on Assets (ROA)

ROA showed steady growth from 13.11% in September 2020 to a peak near 26.37% in September 2022. Following this peak, it experienced a gradual decline to just below 18% by late 2024, after which it rebounded to above 25% in mid-2025. This pattern indicates efficient asset utilization and profitability improvements over most of the period, with some softening seen later but recovery evident towards the end.

Revenue Trends

Revenues demonstrated an overall upward trajectory from September 2019 to June 2025, beginning at approximately 1.41 billion USD and increasing to around 3.17 billion USD. There was a consistent growth rate, with occasional short-term fluctuations evident, such as a slight dip observed around March 2022 and between the periods of March 2023 to September 2023. Despite these irregularities, the long-term trend indicates steady revenue expansion.

Gross Margin Development

Gross margin in absolute terms followed a comparable increasing trend, advancing from about 809 million USD in September 2019 to nearly 1.97 billion USD in June 2025. The gross margin values exhibited incremental growth with diminishing volatility in later periods, suggesting improved stability in profit generation at the gross level over the analyzed time frame. The growth pace in gross margin was broadly consistent with revenue growth, indicating maintained cost efficiency.

Gross Profit Margin Percentage

The gross profit margin percentage, provided from June 2020 onwards, showed a gradual increase from 57.81% to above 60% by the end of the period. This gradual improvement reflects enhanced profitability relative to sales, marked by better cost management or favorable pricing strategies. Minor percent decreases were observed occasionally but were promptly corrected, resulting in a generally stable and upward trend in margin percentage.

Overall Financial Performance Insight

The company experienced solid growth in both revenue and gross margin metrics over the analyzed quarters, with gross profit margins improving as a proportion of sales. This suggests operational efficiency gains and potentially a stronger market position. Short-term declines in revenue and margin were transitory, indicating resilience against market or operational pressures. The data implies effective management of cost components relative to revenue expansion.

Income from operations

The income from operations exhibits significant fluctuations over the periods, with an initial low in March 2020 at 175,964 thousand US dollars, likely reflecting an unusual event or seasonality. From that point onward, the values generally increase, peaking at 1,199,179 thousand US dollars in December 2022. Notably, there is a decline during the first half of 2023, with income falling to 824,221 thousand in June 2023, followed by a recovery and subsequent growth through to June 2025, reaching 1,351,760 thousand US dollars. The overall trend suggests resilience and growth after an early dip in 2020.

Revenues

Revenues show a steady upward trend beginning at 1,413,414 thousand US dollars in September 2019, with the exception of a decrease in the early 2020 quarter to 1,423,964 thousand. Post-2020, revenues continue to increase substantially, reaching a peak of 2,983,887 thousand US dollars in December 2022. There is a noticeable dip in the first half of 2023 that corresponds with the similar decline seen in operating income, dropping to 2,355,137 thousand by June 2023. However, revenues recover from this point, rising to 3,174,741 thousand US dollars by June 2025. This pattern highlights both growth capacity and periodic contraction, likely influenced by external economic factors or operational cycles.

Operating profit margin

The operating profit margin shows a marked improvement starting from a base near 25.87% in June 2020 to a higher profitability range in subsequent years. Margins consistently increase, reaching the range of 38% to 40% from mid-2021 through the end of 2025, except for a moderate dip in mid-2023 where margins fall to around 33%-34%. This trend indicates enhanced efficiency and cost control over time, resulting in a more profitable operating model despite fluctuations in absolute income and revenue values.

Overall Analysis

The company's financial performance demonstrates an initial impact in early 2020, followed by substantial growth in both revenue and operating income through late 2022. The dip experienced in the first half of 2023 occurs across all key metrics but is temporary, with strong rebounds observed thereafter. The improvement in operating profit margins over the period underscores increased operational efficiency. The data suggests the company has managed to adapt to challenges and leverage growth opportunities, maintaining a strong profitability stance as revenue scales upward over the longer term.

Revenue Trends

Revenues exhibit a generally upward trajectory over the periods analyzed, increasing from approximately $1.41 billion in late 2019 to over $3.17 billion by mid-2025. Despite some fluctuations and occasional quarters with slight declines, the overall pattern reflects consistent growth, particularly pronounced from 2021 onwards.

Net Income Attribution

Net income attributable to the company shows significant variation across quarters. Early periods demonstrate moderate values with a notable spike in the third quarter of 2021, reaching over $1 billion. After this peak, net income experiences some volatility but remains generally elevated compared to the initial periods, indicating strengthened profitability alongside revenue growth.

Net Profit Margin Analysis

From the point where margin data becomes available starting mid-2020, net profit margins have remained robust. The margins increase markedly through 2021, peaking above 36% before gradually declining to around the high 20% to low 30% range in subsequent years. This suggests a phase of exceptional profitability followed by stabilization at a still strong margin level.

Interrelation of Financial Metrics

The simultaneous rise in revenues and net income up to late 2021, accompanied by improving net profit margins, indicates effective cost control and operational efficiency during this period. Subsequent periods show revenues continuing to grow, albeit with a slight moderation in margin percentages, which could imply increasing expenses or investments aimed at sustaining long-term growth.

Overall Observations

The company demonstrates solid financial performance with sustained revenue expansion and strong profitability. Quarterly fluctuations in net income, combined with relatively high profit margins, point to a well-managed business adapting to changing conditions. The data suggests a healthy balance between growth and profitability, with nets margins maintaining levels indicative of competitive advantage.

The quarterly financial data exhibit notable variability and trends in key performance indicators over the analyzed periods. Net income attributable to the company shows significant fluctuations, with a generally upward trajectory interrupted by some periods of decline. After a sharp drop in the first quarter of 2020, net income recovered strongly and peaked around the third quarter of 2021 before experiencing some decreases in subsequent quarters. The highest values are observed in the periods spanning late 2021 through mid-2022, followed by episodic rises and falls, indicating volatility in profitability but a general recovery and growth in recent quarters.

Total stockholders’ equity demonstrates a long-term upward trend with some irregularities. There is consistent growth from late 2019 through the end of 2021, with a significant dip observed in mid-2022, followed by a robust recovery and notable increases through 2023 and into 2024 and early 2025. This pattern suggests periods of possible equity restructuring or market valuation adjustments, but overall the equity base expands over the full timeline, reflecting strengthening financial foundation.

Return on Equity (ROE) percentages provide insight into the company's efficiency in generating profits from shareholders' equity. ROE data start being reported in June 2020, showing extraordinarily high values in the latter part of 2021 and early 2022, with percentages exceeding 200% and then gradually declining while remaining elevated relative to earlier quarters. The exceptionally high ROE values in late 2021 and into 2022 correspond to the periods with fluctuations in equity and strong net income figures, suggesting leveraged returns or one-off factors impacting profitability relative to equity. In recent quarters, the ROE stabilizes at a high level around 80% to 90%, indicating sustainable strong performance in generating returns despite some fluctuations.

Overall, the data reflect a company experiencing volatility in income and equity levels, with periods of rapid growth and temporary contractions. The rising trend in equity and sustained high ROE values imply effective utilization of capital and improving shareholder value. However, the observed volatility underscores the importance of monitoring underlying causes for income variability to assess sustainability and risk.

Net Income Attributable

Substantial swings are present, with initial declines in early 2020 followed by strong recovery and peaks in late 2021; recent quarters show variability but a general upward momentum continuing into 2025.

Total Stockholders’ Equity

Steady growth with a notable mid-2022 dip and subsequent recovery leading to higher levels by early 2025, indicating structural changes or market influences on equity composition.

Return on Equity (ROE)

Reported percentages reveal extremely high ROE in late 2021 and 2022, followed by a gradual decrease yet maintaining strong elevated levels, reflecting highly efficient capital use despite equity fluctuations.

Net Income Attributable to KLA

The net income demonstrates considerable variability across the observed periods. Initially, values fluctuate mildly from approximately 346 million USD in late 2019 to a low of around 78 million USD in early 2020. Subsequently, a pronounced upward trend emerges, peaking notably at over 1 billion USD in the third quarter of 2021. Following this peak, net income experiences intermittent declines and rises, maintaining a generally high level above 500 million USD. The most recent quarters into 2024 and 2025 show another upward trajectory, culminating in a peak exceeding 1.2 billion USD in the second quarter of 2025.

Total Assets

Total assets portray a steady and consistent increase over the entire duration. Starting just below 9.3 billion USD in late 2019, assets grow incrementally each quarter with no substantial declines. This progression leads to assets surpassing 16 billion USD by mid-2025, reflecting a sustained expansion of the company's asset base.

Return on Assets (ROA)

Return on Assets metrics reveal emerging data from mid-2020 onwards, where ROA starts at 13.11% and generally trends upward until early 2022, reaching a peak near 26.37%. Subsequently, the ratio oscillates with a slight downward trend, settling around the high teens to low twenties percentage range in 2023 and early 2024. The latter quarters of the dataset indicate a renewed increase, culminating in an ROA of approximately 25.28% by mid-2025. This pattern suggests periods of improving operational efficiency followed by moderate fluctuations.

Summary of Observed Financial Trends

The overall financial performance displays strong growth in both net income and asset accumulation. The sharp increases in net income during certain quarters suggest episodic gains or improved operational results, while sustained asset growth points to ongoing investments or asset acquisitions. Meanwhile, ROA variations imply fluctuations in asset utilization efficiency, with periods of peak profitability followed by stabilization phases. The alignment of rising net income alongside growing total assets and relatively stable to improving ROA indicates the company maintains profitability while expanding its resource base.