Stock Analysis on Net
Stock Analysis on Net

KLA Corp. (NASDAQ:KLAC)

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Common-Size Income Statement
Quarterly Data

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KLA Corp., common-size consolidated income statement (quarterly data)

Microsoft Excel
3 months ended: Sep 30, 2025 Jun 30, 2025 Mar 31, 2025 Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 Dec 31, 2023 Sep 30, 2023 Jun 30, 2023 Mar 31, 2023 Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019
Product
Service
Revenues
Costs of revenues
Gross margin
Research and development
Selling, general and administrative
Impairment of goodwill and purchased intangible assets
Income from operations
Interest expense
Loss on extinguishment of debt
Other income (expense), net
Income before income taxes
(Provision) benefit for income taxes
Net income
Net (income) loss attributable to non-controlling interest
Net income attributable to KLA

Based on: 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).

Revenue Composition
The product segment consistently accounts for the majority of revenues, starting at approximately 75% in late 2019 and gradually increasing, peaking near 82.56% in late 2022. Following this peak, it slightly declines but remains above 75%. Meanwhile, the service segment shows an inverse trend, decreasing from about 25% in 2019 to a low near 17.44% in late 2022, before increasing again towards 23.2% by late 2025, suggesting a shifting balance between product and service revenue contributions over time.
Cost of Revenues and Gross Margin
The cost of revenues as a percentage of total revenues exhibits moderate fluctuations, initially around 42.75% in late 2019, improving to the high 30s by early 2025. Correspondingly, gross margins improve from about 57.25% to levels above 61% in some quarters, indicating enhanced cost control or pricing power during the period. However, occasional spikes in costs, such as near 42.12% in early 2023, temporarily compress margins.
Operating Expenses
Research and development expenses steadily decline as a percentage of revenues, from roughly 14.9% in 2019 to about 11% to 13% in the later years, suggesting improved efficiency or strategic realignment in R&D spending. Selling, general, and administrative expenses also decrease over time from approximately 13.3% to below 9%, indicating tighter expense management or scaling benefits. Notably, occasional increases occur in some quarters, reflecting possible increased investments or operational demands.
Impairment Charges
There are notable one-time impairment charges recorded in the data, with a significant percentage impact observed in early 2020 (-18.02%) and recurrent smaller impacts in later periods (e.g., late 2023). These charges temporarily reduce operating income and suggest periodic non-recurring write-downs affecting the financial results.
Income from Operations and Net Income
Income from operations shows an overall upward trend, rising from approximately 29% of revenues in 2019 to above 40% in several quarters between 2021 and 2025. However, some volatility is present, with dips correlating to impairment charges and higher costs. Net income follows a similar pattern, with a substantial spike to over 51% in late 2021, largely due to an unusual tax benefit recorded that quarter. In general, net income remains robust, reflecting profitable operations and effective cost management.
Interest and Other Income
Interest expense decreases over time from about 2.85% to near 2.2%, indicating reduced debt burden or improved financing costs. Other income shows some variability but generally trends positively, contributing a small but increasing proportion of revenues—reaching nearly 2% in the mid-2020s, supporting overall profitability.
Income Taxes
The tax provision displays substantial volatility, with both negative and positive swings throughout the periods. Some quarters, particularly in 2021, show significant tax benefits (positive percentages), while most others reflect provisions around 4% to 6% of revenues. This irregularity impacts net income and suggests fluctuating effective tax rates, possibly due to tax planning or one-off adjustments.
Summary
The analyzed financial data indicate a company with a dominant and growing product revenue base, improving gross margins, and declining operating expenses relative to revenues. Occasional impairment charges and tax provision variability cause fluctuations in profitability metrics. Overall, operating and net income margins demonstrate strength and resilience, supported by reduced interest expenses and modest growth in other income. The trends reflect effective management of cost structures and strategic shifts between product and service revenues over the reported periods.