Morgan Stanley has downgraded KLA Corp (KLAC) to Equal-Weight from Overweight, a decision that signals increased caution regarding the company's outlook. The downgrade, effective September 21, 2025, comes as KLA Corp faces potential competitive pressures and market conditions that could impact its performance.
KLA Corp, a leader in the semiconductor industry, specializes in providing process control and yield management solutions. Headquartered in Milpitas, California, the company employs approximately 15,000 individuals and offers a comprehensive portfolio of inspection and metrology products, along with related services and software. Currently, KLA Corp boasts a market capitalization of $147.0 billion, a P/E ratio of 34.69, and an impressive dividend yield of 65.1%.
The company is set to report its next earnings on July 29, 2026, with analysts estimating an EPS of $9.36 and revenue of $3.4 billion. Recent performance has shown resilience, with KLA Corp exceeding earnings expectations in its last several quarters.
Analyst ratings, such as the recent downgrade, reflect professional opinions influenced by research and financial models. While these assessments can provide valuable insights, they are based on assumptions that may evolve as new information emerges. Investors are advised to consider a range of factors, including company fundamentals and industry trends, in their decision-making process.
As of November 1, 2025, the consensus among analysts remains positive, with 8 Strong Buy, 9 Buy, and 17 Hold ratings out of a total of 35 analysts covering the stock. This recent downgrade by Morgan Stanley adds to the evolving landscape of analyst actions surrounding KLA Corp, as the firm navigates a competitive semiconductor market.