KLAC · 10-K · 2026A · Full report

Trade Policy and Tariffs

KLA CORP · 2026-08-06 · Importance 40 · Surprise 42

KLA stated that government regulations and tariffs have affected its fiscal 2026 results and may continue to affect operations. The company is assessing the aggregate potential impact of U.S. and foreign government actions, particularly on its ability to provide products and services to existing and potential customers in China. Export-control restrictions constrained certain advanced-technology transactions in China, while domestic investment in legacy-node technologies largely offset those restrictions and kept China revenue comparable year over year. Tariffs also increased service and manufacturing costs in fiscal 2026, reducing gross-margin performance relative to what it otherwise would have been.