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KLA (NASDAQ: KLAC) hikes dividend and launches new $7B share repurchase

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

KLA Corporation announced two major capital return actions. The Board set a new quarterly dividend level of $2.30 per share, a 21% increase from the prior $1.90 dividend declared in February 2026, beginning with the dividend expected to be declared in May 2026, subject to ongoing Board discretion.

The Board also approved a new $7 billion share repurchase program. This authorization is in addition to a prior $5 billion program announced in April 2025, which had $3.94 billion of capacity remaining as of December 31, 2025. Repurchases may be executed through various methods and can be suspended or discontinued at any time. The company also hosted an investor day with presentations from senior management.

Positive

  • Dividend increased 21%: The Board set a new quarterly dividend level of $2.30 per share, up from $1.90, signaling confidence in cash generation and willingness to return more cash to shareholders.
  • Large incremental buyback authorization: A new $7 billion share repurchase program, in addition to $3.94 billion remaining under a prior $5 billion plan, provides significant capacity for future stock repurchases.

Negative

  • None.

Insights

KLA pairs a 21% dividend hike with a $7B new buyback, signaling strong cash generation.

KLA is materially increasing shareholder returns. The Board set a new quarterly dividend level of $2.30 per share, a 21% increase from $1.90, starting with the dividend expected to be declared in May 2026, while preserving discretion over future payments.

Alongside this, the Board authorized a new $7 billion share repurchase program, on top of an earlier $5 billion authorization with $3.94 billion remaining as of December 31, 2025. This indicates confidence in long-term cash flows and balance sheet capacity, though actual impact depends on execution pace, market conditions and potential changes in Board decisions.

KLA CORP false 0000319201 0000319201 2026-03-11 2026-03-11
 
 

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

FORM 8-K

 

 

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of The Securities Exchange Act of 1934

Date of Report (Date of earliest event reported): March 11, 2026

 

 

KLA CORPORATION

(Exact name of registrant as specified in its charter)

 

 

 

Delaware   000-09992   04-2564110

(State or other jurisdiction

of incorporation)

 

(Commission

File Number)

 

(IRS Employer

Identification No.)

 

One Technology Drive Milpitas California   95035
(Address of principal executive offices)   (Zip Code)

Registrant’s telephone number, including area code: (408) 875-3000

(Former name or former address, if changed since last report)

 

 

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

 

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

 

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

 

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

 

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

 

Title of each class

 

Trading

Symbol(s)

 

Name of each exchange

on which registered

Common Stock, $0.001 par value per share   KLAC   The Nasdaq Stock Market, LLC
(indicate by check mark)
    The Nasdaq Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

 

 
 


Item 7.01

Regulation FD Disclosure.

As previously announced, KLA Corporation (the “Company”) hosted an investor day on March 12, 2026. The investor day included formal presentations by Richard Wallace, President and Chief Executive Officer, Bren Higgins, Executive Vice President and Chief Financial Officer, and other members of executive management.

A replay of the webcast and a copy of the presentation slides, which were discussed at the investor day, are available on the Investor Relations page of the Company’s website at https://ir.kla.com.

 

Item 8.01

Other Events.

On March 11, 2026, the Board of Directors of the Company (the “Board”) established a quarterly dividend level of $2.30 per share on the outstanding shares of the Company’s common stock, which represents the anticipated level at which dividends will be declared by the Board until the Board determines otherwise, beginning with the dividend expected to be declared in May 2026. This new dividend level represents a 21% increase over the Company’s most recent quarterly dividend of $1.90 per share declared in February 2026. The declaration and payment of future dividends is subject to the Board’s discretion and will depend on financial and legal requirements and other considerations.

Also, on March 11, 2026, the Board approved a new share repurchase program that authorizes the repurchase of up to $7 billion of shares of the Company’s common stock. This share repurchase program is in addition to the $5 billion share repurchase program announced in April 2025, which as of December 31, 2025 had $3.94 billion of repurchase authority remaining.

Under the repurchase programs, repurchases can be made from time to time using a variety of methods, which may include open market purchases, privately negotiated transactions, accelerated share repurchase programs, or otherwise, all in accordance with the requirements of the Securities and Exchange Commission and other applicable legal requirements. The specific timing, price and size of purchases will depend on prevailing stock prices, general economic and market conditions, and other considerations. The repurchase programs do not obligate the Company to acquire any particular amount of its common stock, and the repurchase programs may be suspended or discontinued at any time at the Company’s discretion.

Note Regarding Forward-Looking Statements:

Statements in this report other than historical facts, such as statements pertaining to future quarterly dividends and share repurchases, are forward-looking statements and are subject to the Safe Harbor provisions created by the Private Securities Litigation Reform Act of 1995. These forward-looking statements are based on current information and expectations and involve a number of risks and uncertainties. Actual results may differ materially from those projected in such statements due to various factors, including, but not limited to: our vulnerability to a weakening in the condition of the financial markets and the global economy; risks related to our international operations; evolving Bureau of Industry and Security of the U.S. Department of Commerce rules and regulations and their impact on our ability to sell products to and provide services to certain customers in China; tariffs and other trade restrictions; costly intellectual property disputes that could result in our inability to sell or use the challenged technology; risks related to the legal, regulatory and tax environments in which we conduct our business; differing stakeholder expectations, requirements and attention to environment, social and governance (“ESG”) matters and the resulting costs, risks and impact on our business; unexpected delays, difficulties and expenses in executing against our environmental, climate, or other ESG targets, goals and commitments; our ability to attract, retain and motivate key personnel; our vulnerability to disruptions and delays at our third-party service providers; cybersecurity threats, cyber incidents affecting our and our business partners’ systems and networks; our inability to access critical information in a timely manner due to system failures; risks related to acquisitions, integrations, strategic alliances or collaborative arrangements; climate change, earthquake, flood or other natural catastrophic events, public health crises or terrorism and the adverse impact on our business operations; the war between Ukraine and Russia, the armed conflict in Iran and elsewhere in the Middle East, and the significant military activity in those regions; lack of insurance for losses and interruptions caused by terrorists and acts of war, and our self-insurance of certain risks including earthquake risk; risks related to fluctuations in foreign currency exchange rates; risks related to fluctuations in interest rates and the market values of our portfolio investments; risks related to tax and regulatory compliance audits; any change in taxation rules or practices and our effective tax rate; compliance costs with federal securities laws, rules, regulations, NASDAQ requirements, and evolving accounting standards and practices; ongoing changes in the technology industry, and the semiconductor industry in particular, including future growth rates, pricing trends in end-markets, or changes in customer capital spending patterns; our vulnerability to a highly concentrated customer base; the cyclicality of the industries in which we operate; our ability to timely develop new technologies and products that successfully address changes in the industry; risks related to artificial intelligence; our ability to maintain our technology advantage and protect proprietary rights; our ability to compete in the industry; availability and cost of the materials and parts used in the production of our products; our ability to operate our business in accordance with our business plan; risks related to our debt and leveraged capital structure; we

 


may not be able to declare cash dividends at all or in any particular amount; liability to our customers under indemnification provisions if our products fail to operate properly or contain defects or our customers are sued by third parties due to our products; our government funding for research and development is subject to audit, and potential termination or penalties; we may incur significant restructuring charges or other asset impairment charges or inventory write offs; we are subject to risks related to receivables factoring arrangements and compliance risk of certain settlement agreements with the government; and risks related to the Court of Chancery of the State of Delaware being the sole and exclusive forum for certain actions and proceedings. For other factors that may cause actual results to differ materially from those projected and anticipated in forward-looking statements in this report, please refer to KLA’s Annual Report on Form 10-K for the year ended June 30, 2025, and other subsequent filings with the Securities and Exchange Commission (including, but not limited to, the risk factors described therein). KLA assumes no obligation to, and does not currently intend to, update these forward-looking statements.

 


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

 

    KLA CORPORATION
Date: March 12, 2026     By:  

/s/ Bren D. Higgins

    Name:   Bren D. Higgins
    Title:   Executive Vice President and Chief Financial Officer

FAQ

What did KLA (KLAC) announce regarding its quarterly dividend?

KLA’s Board set a new quarterly dividend level of $2.30 per share, up from $1.90. This represents a 21% increase and is the anticipated level beginning with the dividend expected to be declared in May 2026, subject to ongoing Board discretion.

How large is KLA’s new share repurchase program announced in this 8-K?

KLA’s Board approved a new share repurchase authorization of up to $7 billion of common stock. This new program is in addition to a prior $5 billion authorization announced in April 2025, which had $3.94 billion of remaining capacity as of December 31, 2025.

How does KLA’s new dividend compare to the previous dividend level?

The new quarterly dividend level of $2.30 per share is 21% higher than the company’s most recent quarterly dividend of $1.90 per share, which was declared in February 2026. The Board expects to apply this new level starting with the May 2026 dividend.

What flexibility does KLA have under its share repurchase programs?

KLA’s repurchase programs allow stock buybacks using methods such as open market purchases, privately negotiated transactions and accelerated share repurchase programs. The programs do not obligate any specific amount of repurchases and may be suspended or discontinued at the company’s discretion at any time.

When is KLA’s higher dividend level expected to take effect?

KLA states that the new $2.30 per share quarterly dividend level is expected to begin with the dividend anticipated to be declared in May 2026. However, all future dividends remain subject to the Board’s discretion and applicable financial and legal considerations.

Did KLA provide any additional investor communications alongside these actions?

Yes. KLA hosted an investor day on March 12, 2026, featuring presentations by its CEO, CFO and other executives. A replay of the webcast and the related presentation slides are available on the Investor Relations section of the company’s website for further detail.

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Semiconductor Equipment & Materials
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