New York, February 2, 2026, 11:08 (EST) — Regular session
KLA Corporation shares slipped roughly 1% to $1,414 in late morning trading, underperforming other chip-equipment stocks like Applied Materials, Lam Research, and ASML Holding. Both the iShares Semiconductor ETF and VanEck Semiconductor ETF climbed, while the broader market also pushed higher.
The divergence is significant since KLA’s inspection and measurement tools are embedded deep in the chip production process, making its guidance a key indicator of chipmakers’ manufacturing equipment spending this year. Given stretched valuations in parts of the sector, even slight changes in outlook have been driving individual stocks more than the broader group.
Following last week’s earnings, KLA’s stock dipped in after-hours trading despite beating estimates. Michael Ashley Schulman, chief investment officer at Running Point Capital Advisors, described the March quarter as showing steady growth rather than a clear acceleration. He also pointed to lingering doubts about demand from China and the impact of U.S. export controls, even as some peers have sounded a more optimistic note in recent reports.
KLA reported second-quarter revenue of $3.30 billion, with adjusted, or non-GAAP, earnings coming in at $8.85 per share. Looking ahead to the March quarter, it projects revenue around $3.35 billion, plus or minus $150 million, and non-GAAP EPS near $9.08, give or take 78 cents. CEO Rick Wallace highlighted a “record quarter for revenue and free cash flow,” driven by strong demand linked to advanced chipmaking. KLA Corporation
Non-GAAP results exclude certain items the company considers outside its core operations. Investors keep a close eye on this metric in chip equipment, where margins often fluctuate due to supply mix, rushed shipping, and component expenses.
They’re digging into KLA’s outlook on wafer-fab equipment spending — the gear for chip production — as makers ramp up capacity for advanced processors and memory. Timing is crucial here. Even a slight delay of a few weeks in deliveries or installations can push revenue into different quarters.
However, the company flagged potential hurdles in its quarterly filing, noting that export-control rules from the U.S. Department of Commerce’s Bureau of Industry and Security might limit sales of some products and services to Chinese customers. KLA also highlighted risks tied to disruptions among third-party suppliers and warned that rising DRAM prices for its image computers could pressure gross margins.
Traders are keeping an eye on how order sentiment stabilizes following the earnings surge, along with any weekly shifts in discussions about export licenses and supply chains. Changes in those areas usually hit the high-multiple equipment stocks quickly.
KLA’s earnings for the March quarter are due next, with Investing.com marking the date as April 23.
