KLA Corporation Just Recorded A 5.4% EPS Beat: Here's What Analysts Are Forecasting Next

KLA Corporation (NASDAQ:KLAC) came out with its quarterly results last week, and we wanted to see how the business is performing and what industry forecasters think of the company following this report. KLA reported US$3.1b in revenue, roughly in line with analyst forecasts, although statutory earnings per share (EPS) of US$8.16 beat expectations, being 5.4% higher than what the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. So we gathered the latest post-earnings forecasts to see what estimates suggest is in store for next year.

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Taking into account the latest results, the consensus forecast from KLA's 26 analysts is for revenues of US$12.4b in 2026. This reflects a modest 7.5% improvement in revenue compared to the last 12 months. Statutory earnings per share are predicted to climb 13% to US$31.42. In the lead-up to this report, the analysts had been modelling revenues of US$12.3b and earnings per share (EPS) of US$29.66 in 2026. The analysts seems to have become more bullish on the business, judging by their new earnings per share estimates.

View our latest analysis for KLA

There's been no major changes to the consensus price target of US$786, suggesting that the improved earnings per share outlook is not enough to have a long-term positive impact on the stock's valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic KLA analyst has a price target of US$900 per share, while the most pessimistic values it at US$590. This shows there is still a bit of diversity in estimates, but analysts don't appear to be totally split on the stock as though it might be a success or failure situation.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that KLA's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 6.0% growth on an annualised basis. This is compared to a historical growth rate of 13% over the past five years. Compare this against other companies (with analyst forecasts) in the industry, which are in aggregate expected to see revenue growth of 16% annually. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than KLA.

The Bottom Line

The most important thing here is that the analysts upgraded their earnings per share estimates, suggesting that there has been a clear increase in optimism towards KLA following these results. Fortunately, the analysts also reconfirmed their revenue estimates, suggesting that it's tracking in line with expectations. Although our data does suggest that KLA's revenue is expected to perform worse than the wider industry. The consensus price target held steady at US$786, with the latest estimates not enough to have an impact on their price targets.

With that in mind, we wouldn't be too quick to come to a conclusion on KLA. Long-term earnings power is much more important than next year's profits. We have forecasts for KLA going out to 2027, and you can see them free on our platform here.

However, before you get too enthused, we've discovered 1 warning sign for KLA that you should be aware of.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.