Stock Pulse
KLA Corp (KLAC) reported strong Q2 FY2025 results with 23.7% year-over-year revenue growth and 33% adjusted EPS growth, reflecting consistent cash flow generation and a commitment to return over 85% of free cash flow to shareholders through dividends and buybacks [2]. Despite positive fundamentals, including a 5-year revenue growth of 15.5% and strong operating and free cash flow margins [1], KLAC's share price dropped 12% due to broader market pressures from new tariffs [6]. While Jefferies downgraded KLAC to "Hold" [4], Morgan Stanley upgraded the stock [5], and Deutsche Bank raised the price target to $850 [3]. An insider, CFO Bren Higgins, sold 7,008 shares under a pre-arranged plan [7]. Future growth is anticipated in high-bandwidth memory and AI markets, but potential headwinds remain due to export controls impacting China revenue [6].