KLA vs Texas Instruments
This page compares KLA and Texas Instruments, examining business models, financial performance, and market context in a clear, neutral manner for readers seeking information. It highlights organisational structures, strategies, and industry factors that shape each company, without giving investment advice. Educational content, not financial advice.
This page compares KLA and Texas Instruments, examining business models, financial performance, and market context in a clear, neutral manner for readers seeking information. It highlights organisatio...
Why It's Moving
KLAC Stock Warning: Why Analysts See -10% Downside Risk
- Revenue hit $3.30 billion, up 7.2% year-over-year but just shy of the $3.31 billion consensus, spotlighting tepid demand growth in a high-stakes chip cycle.
- Diluted EPS of $8.68 trailed the $8.98 estimate, even as non-GAAP EPS beat guidance midpoints, underscoring leverage limits under current market dynamics.
- Guidance flags transitory pricing weakness dragging gross margins down 75-100 basis points in 2026, tied to accelerating DRAM additions that could crimp near-term gains.
TXN Stock Warning: Why Analysts See -17% Downside Risk
- Q4 revenue hit $4.42 billion, meeting expectations, but EPS of $1.27 missed by 2 cents due to unforeseen charges, signaling ongoing cost pressures.
- Q1 forecast projects $4.32-$4.68 billion in sales, implying first sequential growth since 2010, yet analysts call the analog rebound 'stuck in first gear' with data-center gains providing outsized lift.
- Divergent takes emerge: Cantor Fitzgerald deems results 'surprisingly positive' for free cash flow prospects, while others like Bernstein and Jefferies view recovery as too slow, fueling -17% downside warnings.
KLAC Stock Warning: Why Analysts See -10% Downside Risk
- Revenue hit $3.30 billion, up 7.2% year-over-year but just shy of the $3.31 billion consensus, spotlighting tepid demand growth in a high-stakes chip cycle.
- Diluted EPS of $8.68 trailed the $8.98 estimate, even as non-GAAP EPS beat guidance midpoints, underscoring leverage limits under current market dynamics.
- Guidance flags transitory pricing weakness dragging gross margins down 75-100 basis points in 2026, tied to accelerating DRAM additions that could crimp near-term gains.
TXN Stock Warning: Why Analysts See -17% Downside Risk
- Q4 revenue hit $4.42 billion, meeting expectations, but EPS of $1.27 missed by 2 cents due to unforeseen charges, signaling ongoing cost pressures.
- Q1 forecast projects $4.32-$4.68 billion in sales, implying first sequential growth since 2010, yet analysts call the analog rebound 'stuck in first gear' with data-center gains providing outsized lift.
- Divergent takes emerge: Cantor Fitzgerald deems results 'surprisingly positive' for free cash flow prospects, while others like Bernstein and Jefferies view recovery as too slow, fueling -17% downside warnings.
Investment Analysis
KLA
KLAC
Pros
- KLA is a global leader in semiconductor process control and yield management solutions with a strong technological edge and innovation pipeline.
- The company demonstrated robust financial performance in 2025, with revenue increasing by 23.89% to $12.16 billion and earnings up 47.06%.
- KLA has a significant market presence among top chip manufacturers, benefiting from the growing complexity and demand in semiconductor fabrication.
Considerations
- KLA’s stock has recently experienced high volatility and a sharp pullback, declining over 10% within a week despite strong long-term returns.
- The current valuation is relatively high with a price/earnings ratio around 38, which may limit near-term upside given recent price targets are mixed.
- Exposure to the cyclical semiconductor capital equipment market introduces execution and demand risks tied to broader industry fluctuations.
Pros
- Texas Instruments has a strong competitive position with a diversified product portfolio serving analog and embedded processing markets.
- The company benefits from stable cash flow generation and a solid balance sheet supporting consistent dividends and share repurchases.
- Texas Instruments’ market capitalisation of approximately $148 billion reflects its scale and established leadership in the semiconductor industry.
Considerations
- TI’s revenue and stock price growth has been modest recently, with limited year-to-date gains compared to high-growth peers.
- The company faces exposure to macroeconomic uncertainties and cyclicality in semiconductor demand that can impact its operational results.
- Rising competition in analog semiconductors and evolving technology trends could pressure TI’s market share and margin durability.
Related Market Insights
America's Chip Renaissance: Why the Semiconductor Surge is Just Beginning
Invest in the US semiconductor surge. Discover opportunities in domestic chip manufacturing, supply chain, and equipment suppliers. Start investing with Nemo.
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August 23, 2025
Related Market Insights
America's Chip Renaissance: Why the Semiconductor Surge is Just Beginning
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KLA (KLAC) Next Earnings Date
KLA Corporation's next earnings date was January 29, 2026, covering the second quarter of fiscal year 2026, as officially announced by the company. With the current date past that event, the subsequent earnings release for the third quarter of fiscal year 2026 is expected around late April 2026, typically between April 24 and April 30. Investors should monitor official channels for the precise confirmation.
Texas Instruments (TXN) Next Earnings Date
Texas Instruments (TXN) is expected to report its next earnings on April 22-28, 2026. This release will cover the first quarter of 2026 (ending March 2026), aligning with the company's historical late-April reporting pattern. Investors should monitor for official confirmation as the date approaches.
KLA (KLAC) Next Earnings Date
KLA Corporation's next earnings date was January 29, 2026, covering the second quarter of fiscal year 2026, as officially announced by the company. With the current date past that event, the subsequent earnings release for the third quarter of fiscal year 2026 is expected around late April 2026, typically between April 24 and April 30. Investors should monitor official channels for the precise confirmation.
Texas Instruments (TXN) Next Earnings Date
Texas Instruments (TXN) is expected to report its next earnings on April 22-28, 2026. This release will cover the first quarter of 2026 (ending March 2026), aligning with the company's historical late-April reporting pattern. Investors should monitor for official confirmation as the date approaches.
Which Baskets Do They Appear In?
The U.S. Semiconductor Surge
Texas Instruments is opening a new U.S. factory to produce iPhone chips for Apple, a move that strengthens the domestic supply chain. This creates a ripple effect, boosting demand for American companies that supply manufacturing equipment and advanced materials to the semiconductor industry.
Published: August 23, 2025
Explore BasketWhich Baskets Do They Appear In?
The U.S. Semiconductor Surge
Texas Instruments is opening a new U.S. factory to produce iPhone chips for Apple, a move that strengthens the domestic supply chain. This creates a ripple effect, boosting demand for American companies that supply manufacturing equipment and advanced materials to the semiconductor industry.
Published: August 23, 2025
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