KLA Corporation

KLA's services business represented approximately 22% of FY2025 total revenue of $12.16B and is growing at an investor-day-guided 13-15% CAGR toward a $6B target by 2030, providing a recurring base atop lumpy equipment orders. Equipment revenue is tied to semiconductor capital expenditure cycles, contributing to a 6.5% revenue decline in FY2024 relative to the FY2023 peak.

The Semiconductor Process Control segment accounts for approximately 78% of FY2025 revenue, with Specialty Semiconductor Process and PCB/Component Inspection comprising the balance. While three formal segments exist, the overwhelming majority of revenue, customers, and technology investment concentrates in the same leading-edge semiconductor inspection market.

No single country exceeded 40% of FY2025 revenue: China contributed approximately 33% ($4.04B), Taiwan approximately 27%, Korea approximately 15%, with the remainder spread across the U.S., Japan, and Europe. The distribution reflects KLA's role as a necessary supplier to all major global fab clusters, though revenue is structurally tied to semiconductor manufacturing concentration in East Asia.

Operating margin expanded from approximately 35.9% in FY2021 to approximately 41.2% in FY2025, including through the FY2024 revenue contraction, reflecting the design-intensive nature of KLA's tools over a partially fixed cost base. The March 2026 investor day targets operating margins of 45-47% by 2030 as R&D intensity declines to 11% and SG&A declines to 7% of revenue.

KLA's inspection and metrology tools are required for yield management at every leading-edge logic and memory node, making equipment purchases non-discretionary for fabs operating at advanced process nodes. Services represent approximately 22% of FY2025 revenue, anchoring aftermarket support and upgrade revenue tied to the global installed base.