KLA falls 13.3% as semiconductor sector slides on November 5, 2026

What happened

KLA (KLAC) fell 13.3% on November 5, 2026, as the semiconductor sector slumped and the company traded at much higher-than-normal volume. The stock opened 5.2% below the previous close and finished the day after trading 2.7 times its 20-day average. The S&P 500 fell 4.4% that day and the technology sector median fell 7.1%, making this move largely a sector-wide one; the stock moved with its sector, with company news offered only as background.

How big was the move

The one-day decline was 3.7 times a typical daily move for the stock and trading volume was 2.7 times its 20-day average, signalling an unusually active session. Over the last five sessions the stock fell 22.5%, versus the S&P 500’s five-session decline of 4.7% and the sector’s five-session weakness of 4.7% as well. Compared with its sector, the stock was 6.3 percentage points worse than the sector median on the day. The stock’s market sensitivity, a beta of 1.93, indicates it tends to move more than the market.

The technical picture

The stock closed 20.1% below its 20-day moving average, 26.1% below its 50-day moving average and 28.7% below its 200-day moving average. The 50-day average is below the 200-day average, a sign of a weak longer-term trend. The relative strength index (14 days) stood at 28, below 30, a level often called oversold. The stock is 57.8% below its 52-week high and has fallen 34.1% over one month and 34.5% over three months. Volatility was elevated at 57% annualized over 60 days, higher than 84% of its own readings over five years.

Fundamentals and valuation

For the four quarters through September 30, 2026, revenue was $14.51 billion, a rise of 15.8% from a year earlier, with the prior quarter showing growth of 11.7%. Diluted earnings per share were $4.00, which rose 25.6% from a year earlier. Gross margin was 61.5%, compared with 61.3% a year earlier, and operating margin was 42.6%, compared with 41.8% a year earlier. Free-cash-flow margin was 27.8% and return on invested capital was 38.4%. The balance sheet showed net debt of 0.6 times EBITDA and share count over one year decreased by 1.0%.

The stock traded with a market value of $206.07 billion. Valuation on trailing earnings was 32.5 times trailing earnings, higher than 67% of its own readings over the past five years, with a five-year median of 30.1 times earnings. Price to forward earnings was 22.7 times expected earnings and free-cash-flow yield was 2.0%. PromtFinance scores ranked the company 32 for Value (Weak), 62 for Growth (Neutral), 69 for Quality (Positive), and 35 for Momentum (Weak), with Revisions at 68 (Positive) and Stability at 47 (Neutral).

Earnings and analyst expectations

KLA reported its last quarterly result on October 28, 2026, with earnings per share of $1.22 against $1.19 expected, 2.5% above estimates. The company had beaten estimates for 15 consecutive quarters and the average surprise over the last four reports was 2.8% above estimates. Typical two-day stock reaction after recent reports was unchanged. The next scheduled earnings report is February 4, 2027. Analysts’ consensus rating was Buy, with 64% of ratings at Buy or Strong Buy, and the consensus price target was $217.90, which was 67.9% above the closing price on November 5, 2026, based on 44 analysts.

What to watch

• February 4, 2027: next earnings report date.
• October 28, 2026: last report beat estimates by 2.5% on earnings per share of $1.22.
• Dividend: board declared a quarterly cash dividend of $0.23 per share, payable on Dec. 1, 2026, to shareholders of record at the close of business on Nov. 16, 2026.
• Recent market activity: an institutional investor, Boston Trust Walden Corp, reduced its KLAC stake by 21.4% in the third quarter and put option volume spiked to 47,908 contracts, about 167% above typical volume.