KLA reported earnings per share of $8.85 on revenue of $3.3 billion on Thursday, beating Wall Street estimates of an EPS of $8.79 on revenue of $3.25 billion.
- Following the company’s Q2 results, analysts are hiking their price targets for KLAC stock, citing its positioning as a core, high-quality holding in the semiconductor industry.
- Morgan Stanley noted that KLA’s guidance of low-double-digit growth in the WFE segment was lower than rival Lam Research’s forecast of a 23% increase.
KLA Corp.’s (KLA) shares declined more than 12% in Friday morning’s trade, even as the company’s second-quarter (Q2) earnings edged past Wall Street expectations.
KLA reported earnings per share (EPS) of $8.85 on revenue of $3.3 billion on Thursday, beating Wall Street estimates of an EPS of $8.79 on revenue of $3.25 billion.
Following the company’s Q2 results, analysts are hiking their price targets for KLAC stock, citing its positioning as a core, high-quality holding in the semiconductor industry.
Morgan Stanley’s Take
Explaining why the KLAC stock is falling on Friday despite its Q2 earnings beating expectations, analysts at Morgan Stanley pointed to KLA’s wafer fab equipment (WFE) growth outlook for the fiscal year 2026, according to TheFly.
The firm noted that KLA’s guidance of low-double-digit growth in the WFE segment was lower than rival Lam Research Corp.’s (LRCX) forecast of a 23% increase. However, it added that KLA’s guidance was conservative and that the risk was skewed to the upside.
Analysts at Oppenheimer noted that KLA’s Q2 results were solid, but not flawless.
Wells Fargo stated in its note that the negative reaction to KLAC stock is misplaced and recommended buying the shares on weakness.
| Firm | Rating | Old Price Target | New Price Target | Upside |
| Morgan Stanley | Overweight | $1,751 | $1,697 | 17% |
| Citi | Buy | $1,800 | $1,450 | 20% |
| Oppenheimer | Outperform | $1,800 | $1,400 | 20% |
| Barclays | Overweight | $1,700 | $1,595 | 13% |
| JPMorgan | Overweight | $1,950 | $1,485 | 30% |
| BofA | Buy | $1,850 | $1,650 | 23% |
| Wells Fargo | Overweight | $1,900 | $1,600 | 27% |
Note: Upside based on KLAC stock’s market price of $1,498 as at 10:50 a.m., Jan. 30, 2026
How Did Stocktwits Users React?
Retail sentiment on Stocktwits around KLA was in the ‘extremely bullish’ territory, with message volumes at ‘extremely high’ levels at the time of writing.
One bullish user noted that there is nothing wrong with the KLAC stock, and Friday’s drop offers a good entry point for investors.
However, a bearish user called KLA’s earnings call “fairly negative.”
KLAC stock is up 22% year-to-date and 99% over the past 12 months.
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