New York, Jan 21, 2026, 19:39 EST — After-hours
- KLA shares ended the day 2.3% higher at $1,520, holding steady in after-hours trading
- Ahead of the Jan. 29 results, UBS, Needham, and Deutsche Bank raised their price targets
- Investors are focused on guidance and any clues about chip-tool spending in 2026
KLA Corporation shares ended Wednesday up 2.28%, closing at $1,520, and showed little movement in after-hours trading. During the day, the stock fluctuated between $1,482.60 and $1,541.43. It remains roughly 4% shy of its 52-week peak of $1,581.34 set on Jan. 16. The S&P 500 climbed 1.16%, while the Dow added 1.21%.
The move came after a steep 5.21% decline on Tuesday, with KLA falling to $1,486.18 amid a broader market selloff. That day saw trading volume exceed 1.7 million shares.
KLA is gearing up to release its fiscal second-quarter earnings on Jan. 29, right after the U.S. market closes, followed by a conference call at 2 p.m. PT. Investors will be focused on any clues about demand and spending trends throughout the chip-equipment supply chain.
Analysts have been revising their estimates ahead of the earnings release. On Wednesday, Deutsche Bank’s Melissa Weathers maintained a hold rating but bumped up her price target to $1,560 from $1,250. The day before, Timothy Arcuri at UBS and Charles Shi at Needham also raised their targets.
Arcuri bumped UBS’s price target on KLA to $1,635 from $1,260, maintaining a neutral stance. He projects fiscal Q2 revenue around $3.3 billion and about $3.4 billion in the following quarter. The upgrade reflects a “shipment catch-up after the BIS Affiliates rule reversal,” referring to U.S. Commerce export controls that impact tool shipments. Arcuri also noted that management could remain optimistic on 2026 wafer-fab equipment (WFE) spending. TipRanks
Needham boosted its price target to $1,800 from $1,350 and maintained a strong buy rating. Shi pointed to “broad-based demand improvement over the past 90 days,” referencing feedback from recent conferences. TipRanks
KLA sells inspection and measurement systems designed to detect defects and tighten manufacturing tolerances in chip production — a process known in the industry as process control. These tools become increasingly crucial as chipmakers move toward smaller features and more complex packaging, where even minor errors can be costly.
Peers held steady as well, with Applied Materials climbing roughly 2% and Lam Research gaining over 2% in the latest session.
The setup works both ways. If KLA’s guidance falls short of a market accustomed to positive surprises, the recent rally could reverse quickly, especially given the lingering policy risks around shipments.
Investors are also tuning in for updates on backlog and lead times, along with signs that delayed shipments might be picking up. When it comes to the sector, KLA’s stance on 2026 spending usually sets the tone.
KLA is set to report earnings on Jan. 29 after the market closes. Investors will be watching closely for management’s guidance on demand and spending, which could spark either a rally or a sell-off in KLAC and other chip-equipment stocks.
