KLA Shares Plunge 4.97% with 106% Volume Surge to 48th Rank Sparking Pre-Earnings Frenzy

On July 31, 2025, KLA (KLAC) closed with a 4.97% decline, trading at $2.01 billion in volume—a 106.26% surge from the previous day. The stock ranked 48th in trading activity, reflecting heightened investor attention ahead of its fiscal 2025 fourth-quarter results. The company reported quarterly revenues of $3.175 billion, with GAAP diluted EPS of $9.06 and non-GAAP diluted EPS of $9.38, both exceeding guidance ranges. Fiscal 2025 total revenues reached $12.16 billion, with GAAP net income of $4.06 billion, underscoring robust operational performance.

KLA’s financial highlights included record quarterly free cash flow of $1.06 billion, marking the first time it surpassed $1 billion. Capital returns for the quarter totaled $679.7 million, contributing to a full-year capital return of $3.05 billion via dividends and buybacks. The company attributed its strong results to demand in semiconductor capital equipment and AI infrastructure growth. Management emphasized expanding relevance of its technologies across foundry, logic, and memory markets, as well as advanced packaging opportunities.

Looking ahead, KLA provided Q1 FY2026 guidance, projecting revenues of $3.15 billion (±$150 million) and non-GAAP diluted EPS of $8.53 (±$0.77). The outlook reflects confidence in maintaining momentum amid evolving semiconductor demand. However, the recent stock decline suggests market skepticism about near-term execution risks or valuation adjustments following strong results.

A backtested strategy of purchasing the top 500 stocks by daily trading volume and holding for one day generated a 166.71% return from 2022 to July 30, 2025—137.53% above the benchmark. The approach’s success was attributed to capturing liquidity-driven momentum in high-volume stocks, aligning with KLA’s recent surge in trading activity. While not directly tied to KLA’s fundamentals, the data underscores the market’s short-term focus on liquidity and volatility in high-activity equities.