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StocksMediumUpdated×5•Originally published 29 April 2026•Updated 30 April 2026•

1 min read

KLA Shares Drop 7% Despite Earnings Beat as Cash Flow Concerns Weigh

Key Facts

1KLA reported adjusted EPS of $9.40 and revenue of $3.42 billion, exceeding analyst expectations.

2The company's shares fell 7.2% due to investor concerns over a year-over-year drop in free cash flow.

about 1 month ago

Version History

1 additional source confirmed this story

Version 5about 1 month ago

What changed: Updated the story to include specific EPS figures, Jefferies' price target hike, the dividend increase, and the new $7 billion share buyback authorization.

Version 4about 1 month ago

What changed: The story was updated to include the Q1 2026 earnings reports for Carvana, Equinix, and SBA Communications.

Version 3about 1 month ago

What changed: Added forward-looking revenue guidance that exceeds estimates due to AI-linked demand.

Version 2about 1 month ago

What changed: Added specific year-on-year revenue growth (11.5%) and details regarding inventory levels being above the long-term average.

Version 1about 1 month ago

What changed: Added specific Q4 revenue guidance figures and confirmed the ticker symbol KLAC.

KLA Corporation (KLAC) shares declined 7.2% despite beating third-quarter estimates with earnings of $9.40 per share, surpassing the $9.16 expected by analysts. To bolster shareholder value, the board increased the quarterly dividend to $2.30 and authorized an additional $7 billion for stock repurchases. Following the report, Jefferies raised its price target for KLAC to $2,000 from $1,700, maintaining a Buy rating on the stock. The company expressed optimism regarding future revenue, cited by surging demand for chipmaking tools essential for artificial intelligence. These updates coincide with quarterly reports from Carvana, Equinix, and SBA Communications as the 2026 fiscal year begins. Market participants remain focused on how these results shape the broader outlook for the technology and digital infrastructure sectors.