How does KLA (KLAC) make money?

KLA (KLAC) generates revenue primarily from Defect Inspection, which accounted for 50.4% of total revenue in TTM through Q1 2026. The company reported $13.10B in revenue and converted 35.7% of it into net profit, equivalent to roughly $4.67B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of KLA (KLAC)?

KLA (KLAC) reported a gross profit margin of 61.8% in TTM through Q1 2026, equivalent to $8.09B in gross profit on $13.10B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of KLA (KLAC)?

KLA (KLAC) reported an operating profit margin of 42.1% in TTM through Q1 2026, equivalent to $5.51B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of KLA (KLAC)?

KLA (KLAC) reported a net profit margin of 35.7% in TTM through Q1 2026, equivalent to $4.67B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is KLA (KLAC) profitable?

Yes. KLA (KLAC) reported $4.67B in net income for TTM through Q1 2026, with a net profit margin of 35.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does KLA (KLAC) invest in research and development?

KLA (KLAC) invested $1.49B in research and development during TTM through Q1 2026, roughly 11.3% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does KLA (KLAC) spend on capital expenditures?

KLA (KLAC) spent $387.06M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 3.0% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does KLA (KLAC) generate?

KLA (KLAC) generated $4.01B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 30.7%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of KLA (KLAC)?

KLA (KLAC) had an effective tax rate of 13.3% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of KLA (KLAC)?

KLA (KLAC) reports revenue across 6 reportable product segments, led by Defect Inspection at 50.4% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

How KLA Makes Money: 2026 Visual Revenue Map

KLA (KLAC) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported April 29, 2026).

KLA discloses geographic revenue only in annual filings. to view the full breakdown.

KLA (KLAC) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for KLA (KLAC) in TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Defect Inspection	$6.60B	50.4%
Service	$3.02B	23.1%
Patterning	$2.46B	18.8%
Specialty Semiconductor Process	$466.48M	3.6%
PCB And Component Inspection	$382.89M	2.9%
Other Revenue	$165.52M	1.3%
Total	$13.10B	100%

Defect Inspection$6.60B
Service$3.02B
Patterning$2.46B
Specialty Semiconductor Process$466.48M
PCB And Component Inspection$382.89M
Other Revenue$165.52M
Total$13.10B

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, KLA (KLAC) reports revenue across 6 operating segments; the largest segment was Defect Inspection at 50.4%, followed by Service (23.1%) and Patterning (18.8%).

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