What it does
The company states that it supplies equipment, software and services used across semiconductor and related-electronics manufacturing. Its solutions support the manufacture of wafers, reticles/masks, chemicals and materials, integrated circuits, packaged ICs and printed circuit boards. KLA organizes this work into three reportable segments: Semiconductor Process Control; Specialty Semiconductor Process; and PCB and Component Inspection. The filing says its process-control portfolio covers inspection, metrology, chemistry process control and software, while its specialty segment supplies vacuum deposition and etching tools and its PCB segment supports inspection, testing, measurement and circuit patterning.
Source: KLA Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
How it makes money
The company states that revenue is derived primarily from product sales and related service contracts, mostly through its direct sales force. The segment table below this text sets out the technologies and products within its three reportable segments, so the filing does not require repeating each product line here. Product offerings span process-control systems and software, specialty semiconductor deposition and etching tools, and PCB and component inspection equipment. Services include maintenance and other support intended to maximize customers’ tool uptime, productivity and tool life. The services business accounted for approximately 23% of total revenues in fiscal 2026.
Source: KLA Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Customers and geography
KLA states that its large customers include semiconductor, semiconductor-related and electronic-device manufacturers in Asia, the U.S. and Europe. Taiwan Semiconductor Manufacturing Company Limited was the customer identified as accounting for more than 10% of total revenue in fiscal 2026, primarily in the Semiconductor Process Control segment. The company has direct sales forces in Asia, the U.S. and Europe, and says international revenue accounted for approximately 87% of total revenue in fiscal 2026. The filing also says its business depends on manufacturers’ capital expenditures, which are affected by economic conditions, demand, regulation and capacity constraints.
Source: KLA Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Competition
The filing describes the worldwide market for advanced process-control, process-enabling and yield-management solutions as highly competitive. It lists system performance, ease of use, reliability, technical service and support, and total cost of ownership as important competitive factors. The company names Applied Materials, Inc., ASML Holding N.V., Hitachi High-Tech Corporation, Lasertec, Inc. and Onto Innovation, Inc. as competitors, while noting that some may have greater financial, research, engineering, manufacturing and marketing resources. It also states that it may face competition from new market entrants overseas or domestically.
Source: KLA Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov
Key risks
The filing’s risk summary includes the following risks:
- Export controls, sanctions and other rules that may limit sales or services to certain customers, particularly in China.
- Prevailing economic conditions, semiconductor cyclicality, customer capital-spending patterns and AI-related investment trends that may affect demand and purchasing decisions.
- A highly concentrated customer base.
- The possibility that components, materials or subassemblies may not be received on a timely, cost-effective or compliant basis, including limited-source supplier, rare-earth-element and DRAM-chip-shortage exposure.
- Cybersecurity incidents that could cause operational disruption, loss of information or assets, remediation costs, investigations, litigation and reputational damage.
- Risks that KLA may not keep pace with industry trends and technological changes.
Source: KLA Corporation Form 10-K for fiscal 2026, Item 1A — sec.gov
People and operations
KLA had 17,200 employees in FY2026. The company states that its principal manufacturing activities occur in the U.S., Singapore, Israel, China and various locations throughout Europe. It designs, assembles and tests systems in-house, while using outsourcing for components and major subassemblies. The filing says the business is not considered seasonal, but has historically been cyclical with semiconductor and electronics manufacturers’ capital-equipment procurement practices. It also states that dependence on sole or limited-source suppliers can create a risk of production interruption or disrupted customer deliveries.
Source: KLA Corporation Form 10-K for fiscal 2026, Item 1 — sec.gov