New York, Jan 20, 2026, 19:13 EST — After-hours
- KLA shares dropped 5.2% in Tuesday’s regular trading, closing at $1,486.18
- The decline occurred amid a widespread selloff across U.S. markets, accompanied by unusually high volume
- Attention turns to KLA’s earnings report and outlook due Jan. 29
KLA Corp (KLAC.O) shares dropped 5.2% on Tuesday, then held steady in after-hours trading. The sharp decline put the chip-equipment maker behind some of its industry rivals. 1
KLA’s stock had been hitting new highs only days ago, making this drop significant as the company gears up to report quarterly results next week. In semiconductors, a slip this close to earnings can quickly shift investor positioning. 1
KLA, a major player in process-control equipment used to inspect and measure chips in production, is closely watched as a gauge of customer demand for advanced manufacturing. Attention now turns to its upcoming report on sales and profit margins. 2
Tuesday saw a rough session for U.S. stocks, with the S&P 500 dropping 2.06% and the Dow sliding 1.76%, per MarketWatch data. Applied Materials took a hit too, falling 2.68% that day. 1
KLA dipped to $1,484.53 during the session before closing at $1,486.18. Trading volume hit about 1.7 million shares, edging past its recent average, according to market data. 1
Even as the stock dipped, analyst notes rolled in. UBS’s Timothy Arcuri maintained a hold rating but raised his price target sharply—from $1,260 to $1,635, according to 5 .
Needham bumped its price target up to $1,800 from $1,350, maintaining a “Strong Buy” rating, TipRanks reported. 3
KLA announced earlier this month it will release its fiscal second-quarter 2026 results on Jan. 29, after the U.S. market closes. A conference call is scheduled for 2 p.m. Pacific (5 p.m. Eastern). 2
KLA continues to flag uncertainty around policy and demand in China, a market it has identified as occasionally weaker. 4
Investors are keeping an eye on wafer-fab equipment—the gear behind chip production—after a solid rally pushed valuations to levels that could get tight if the market shifts.
The stock closed Tuesday roughly 6% under its 52-week peak from Jan. 16, despite a surge that brought it close to all-time highs earlier this month. 1
The regular trading day won’t resume until Jan. 21, leaving Jan. 29 as the next key date: KLA’s earnings report, and, crucially, its forecast for the upcoming quarter. 2
