New York, Jan 31, 2026, 17:01 (ET) — Market closed.
- After its quarterly update, KLA shares fell 15.2% on Friday, closing at $1,427.94
- While results and March-quarter guidance beat estimates, investors zeroed in on the outlook and concerns tied to China.
- Coming next: U.S. jobs data on Feb. 6, followed by earnings from key rival Applied Materials on Feb. 12
KLA shares took a 15.2% hit on Friday, closing at $1,427.94, dragging the stock lower ahead of the weekend following the chip-equipment maker’s quarterly report.
With U.S. markets closed, Monday’s focus shifts to whether Friday’s drop was just a quick correction in an overpriced stock or the beginning of a broader reassessment of chip-factory investments. Wafer-fab equipment—the gear chipmakers use to build and upgrade their plants—often moves first when customers hit the brakes on projects.
“The stock had already sprinted into the print,” said Michael Ashley Schulman of Running Point Capital Advisors, referring to the run-up before Thursday’s results. Shares dropped about 7% in after-hours trading following the release, then fell further in Friday’s session. The company topped second-quarter estimates and forecasted March-quarter revenue and profit above consensus, according to LSEG data. However, the report highlighted uncertainty around demand in China, diverging from the more optimistic outlook Lam Research gave earlier this week. Reuters
KLA reported fiscal second-quarter GAAP net income of $1.15 billion, or $8.68 per share, on $3.30 billion in revenue for the period ending Dec. 31. CEO Rick Wallace said the company posted a record quarter and calendar 2025 in revenue, non-GAAP operating income, and free cash flow. KLA also generated $1.26 billion in free cash flow.
The Philadelphia Semiconductor Index slipped 3.9% on Friday, but KLA’s plunge far exceeded the sector’s decline, thrusting the stock into the spotlight in the chip-tools discussion as the week begins.
KLA kicked off trading at $1,540 on Friday, with its shares swinging from a low of $1,416.84 up to $1,585.00. Around 2.79 million shares were exchanged, per Investing.com.
According to its SEC filings page, the company submitted an 8-K on Jan. 29 and followed up with its quarterly report on Form 10-Q on Jan. 30.
Broker notes diverged on the stock. Jefferies bumped its price target up to $1,850 from $1,500, sticking with a buy rating. UBS, on the other hand, lowered its target to $1,575 but kept a neutral rating, according to a recent analyst roundup.
But KLA’s 10-Q also highlights potential pitfalls: tightening U.S. export regulations that could limit sales and services to some Chinese clients, tariffs and trade barriers, plus the danger that changes in customer capital expenditure delay shipments and dent earnings.
The first major macro hurdle for rate-sensitive tech stocks hits next week with the U.S. January jobs report, scheduled for release at 8:30 a.m. ET on Feb. 6.
Applied Materials is set to report earnings on Feb. 12, a key checkpoint for gauging order momentum and customer spending in the chip-tool sector. Investors frequently watch this date closely.
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