KLA CORPORATION

Red flags

• China accounted for $4.05 billion, or 29.8%, of fiscal 2026 revenue; export-control restrictions already offset domestic legacy-node investment, creating material geopolitical and regulatory exposure.
• Taiwan Semiconductor Manufacturing Company Limited accounted for more than 10% of total revenue, while KLA states that its customer base is highly concentrated and configured orders may create significant non-recoverable costs if delayed or canceled.
• KLA had $5.89 billion of long-term debt at June 30, 2026, including $2.25 billion due in 2049-2062, increasing sensitivity to financing and interest-rate conditions.
• Significant purchase commitments totaled approximately $5.97 billion, a majority due within 12 months, creating inventory and cancellation-risk exposure if semiconductor spending weakens.