New York, January 27, 2026, 19:51 EST — After-hours
- Shares of KLA climbed roughly 4.8%, closing near $1,616 late Tuesday.
- Evercore ISI raised its price target for KLA to $1,700, while Wolfe Research followed suit by boosting its target as well
- Investors are gearing up for KLA’s fiscal second-quarter results, scheduled for release after the bell on Thursday
Shares of KLA Corp (KLAC.O) jumped roughly 4.8% on Tuesday, hitting around $1,616 in after-hours trading. The chip-equipment maker is gearing up for a key earnings release later this week.
This matters as KLA is set to report fiscal second-quarter results after Thursday’s market close, with investors eyeing clear signals on AI-driven chip spending. The stock has already climbed sharply ahead of the earnings, while options traders prepare for bigger moves when a company’s guidance outweighs the quarter itself.
Tuesday’s rally extended beyond just one name. Applied Materials (AMAT.O) climbed about 4.1%, Lam Research (LRCX.O) jumped roughly 7.0%, and ASML’s U.S.-listed shares (ASML.O) added around 2.9%. The Nasdaq Composite gained close to 0.9%, despite a dip in the Dow. (Reuters)
Analyst price targets have climbed over the last two days. Evercore ISI bumped its target on KLA to $1,700 from $1,350, maintaining an “outperform” rating. Wolfe Research wasn’t far behind, raising its price goal to $1,800 from $1,500, according to MT Newswires. (MarketScreener)
KLA announced it will release its earnings on Jan. 29 after markets close, with a conference call scheduled for 2 p.m. Pacific. (KLA Corporation)
KLA projects revenue of $3.225 billion for the quarter, with a $150 million margin either way, and non-GAAP earnings of $8.70 per share, plus or minus 78 cents. (Non-GAAP figures exclude certain items that companies say can obscure the underlying trend.) Zacks’ consensus on Nasdaq.com forecasts $3.26 billion in revenue and $8.82 earnings per share. The preview highlighted margin pressure as a key variable, pointing to product mix shifts and tariff effects. (Nasdaq)
KLA manufactures “process control” equipment — inspection and metrology tools that detect defects and optimize production to increase the yield, meaning the share of usable chips from a wafer. CEO Rick Wallace highlighted the “profound change in high performance computing” driven by the AI infrastructure buildout, citing strong demand from cutting-edge logic, memory, and advanced packaging. (KLA Corporation)
China continues to pose a significant risk as Thursday approaches. KLA has already flagged that ongoing U.S.-China trade frictions might slash sales by $300 million to $350 million over the coming five quarters, pointing to “additional market access loss” due to extended U.S. export controls. Investors will be keenly focused on any updates regarding this outlook. (Reuters)
Traders will zero in on one key question: can KLA sustain growth driven by advanced packaging and high-bandwidth memory without sacrificing margins? They’ll also listen closely for cues on whether management expects chipmakers to maintain their capital spending through the first half of 2026.
Thursday’s earnings report, due after the close, is the next big event. The conference call kicks off at 2 p.m. PT. Investors will be watching KLA’s guidance closely, especially any remarks on demand and potential issues tied to China, which could shape the stock’s direction heading into next week.
