KLAC · 10-K filed 6 Aug 2026 · year to 30 Jun 2026

KLA

37 named things its latest annual report says its results depend on, each in the company's own words. 23 of them are also named by other companies we've read.

Read the filing on SEC.gov ↗

Customers

Taiwan Semiconductor Manufacturing Co. (TSMC)

earns from · more than 10% of total revenuesnamed as a risk

For the fiscal years ended June 30, 2026, 2025 and 2024, the following customers each accounted for more than 10% of total revenues, primarily in the Semiconductor Process Control segment:Year Ended June 30,Business (Item 1)

Also named by ADI, ALAB, AMD, AVGO, CRWV, ENTG, FTNT, INTC and 6 more

Foundry/logic customers

concentrated innamed as a risk

This concentration increases the impact that future business or technology changes within the foundry/logic industry may have on our business, financial condition and operating results;Risk factors (Item 1A)

Suppliers

Sole and limited source suppliers

depends onnamed as a risk

Although we seek to reduce our dependence on sole and limited source suppliers, in some cases the partial or complete loss of certain of these sources, or disruptions within our suppliers’ often complex supply chains, could disrupt scheduled deliveries to customers, damage customer relationships and have a material adverse effect on our results of operations.Business (Item 1)

Also named by LITE

Other companies

AI infrastructure / data center buildout

earns from · $12.57 billionnamed as a risk

Our backlog, primarily consisting of sales orders where written customer requests have been received, increased from $7.86 billion as of June 30, 2025, to $12.57 billion as of June 30, 2026, due to strong demand driven by the AI infrastructure buildout.Business (Item 1)

Tokyo Stock Exchange-listed equity investment

exposed to its price · $46.8 millionnamed as a risk

As of June 30, 2026, the fair value of our investment in the marketable equity security, which began publicly trading on the Tokyo Stock Exchange on April 5, 2021, was $46.8 million.Market risk (Item 7A)

Competitors

Applied Materials, Inc.

competes withnamed as a risk

In each of our product markets, we have many competitors, including companies such as Applied Materials, Inc., ASML Holding N.V., Hitachi High-Tech Corporation, Lasertec, Inc. and Onto Innovation, Inc., some of which may have greater financial, research, engineering, manufacturing and marketing resources than we have.Business (Item 1)

Also named by CLS, LRCX, UCTT

ASML Holding N.V.

competes withnamed as a risk

Also named by INTC

Hitachi High-Tech Corporation

competes withnamed as a risk

Lasertec, Inc.

competes withnamed as a risk

Onto Innovation, Inc.

competes withnamed as a risk

Places

International (non-U.S.) revenue

earns from · approximately 87% of our total revenuesnamed as a risk

International revenues accounted for approximately 87% of our total revenues in the fiscal year ended June 30, 2026 and 89% of our total revenues in both of the fiscal years ended June 30, 2025 and 2024.Business (Item 1)

Also named by KTOS

Israel

operates innamed as a risk

We maintain significant operations in Israel.Risk factors (Item 1A)

Also named by AIOT, AKAM, AMAT, AMGN, APP, ASTS, AVY, BSX and 31 more

Asia

earns fromnamed as a risk

Our future performance depends, in part, on our ability to continue to compete successfully in Asia, one of the largest markets for our equipment.Business (Item 1)

Also named by AAPL, AYI, CART, CB, CDW, CHD, CLS, COHR and 31 more

Singapore

operates innamed as a risk

We earn profits in, and are therefore potentially subject to taxes in, the U.S. and numerous foreign jurisdictions, including Singapore and Israel, the countries in which we earn the majority of our non-U.S. profits.Risk factors (Item 1A)

Also named by A, AAPL, ALAB, AMAT, ANET, APP, AVGO, DLR and 12 more

Milpitas, California

concentrated innamed as a risk

The consolidation of our California operations into a single campus could further concentrate the risks related to any of the disruptive events described above, such as acts of war or terrorism, earthquakes, fires or other natural disasters, if any such event were to impact our Milpitas facility.Risk factors (Item 1A)

Also named by ONTO

Hazards

California earthquakes

concentrated innamed as a risk

An earthquake could significantly disrupt our manufacturing operations, a significant portion of which are conducted in California, an area highly susceptible to earthquakes.Risk factors (Item 1A)

Also named by AMD, DXCM, ELS, ONTO, SNPS

Red Sea shipping routes

named as a risk

Disruptions in shipping routes in the Red Sea could result in delays in shipping our products to customers, which could delay the timing of revenue recognition and create uncertainty related to timeliness of shipments from the region.Risk factors (Item 1A)

Commodities and inputs

Rare earth elements

depends on · about 70% of the worldwide mining of rare earth elementsnamed as a risk

Rare earth elements are critical to certain components contained in our products.Risk factors (Item 1A)

Also named by BBY, GM, ISRG, LRCX, MCHP, MU, RTX, VRT

Daily Secured Overnight Financing Rate (SOFR)

exposed to its price · $2.00 billion in fixed-rate debt that was swapped to floating-rate debtnamed as a risk

An immediate hypothetical 100 basis point increase in interest rates would lead to a $20.0 million increase in the annual interest expense associated with our hedged fixed-rate debt as of June 30, 2026.Market risk (Item 7A)

DRAM chips

exposed to its pricenamed as a risk

Recently, a few large suppliers have discontinued manufacturing certain DRAM chips that are incorporated in a number of our products, and the resulting shortage has caused a dramatic increase in the prices to acquire these chips.Risk factors (Item 1A)

Copper, aluminum and steel tariffs

exposed to its pricenamed as a risk

While some of the U.S. tariffs have been paused, certain U.S. tariffs are currently in effect, including a base tariff on nearly all imports into the U.S., certain reciprocal tariffs by country, and certain sectoral tariffs on copper, aluminum and steel, among others.Risk factors (Item 1A)

Japanese yen, euro, pound sterling and new Israeli shekel

exposed to its pricenamed as a risk

We have some exposure to fluctuations in foreign currency exchange rates, primarily the Japanese Yen, the euro, the pound sterling and the new Israeli shekel.Risk factors (Item 1A)

Regulators

U.S. Customs and Border Protection

subject tonamed as a risk

Recently, some of our products destined for China have been held up by U.S. Customs and Border Protection due to questions about the nature of the customer or about the capabilities of our products.Risk factors (Item 1A)

Also named by BALL, BJ, CHRW, CROX, EXPD, FDX, FDXF, JBHT and 12 more

U.S. Department of Commerce Bureau of Industry and Security (BIS) export controls

subject tonamed as a risk

These rules impose restrictions on our ability to sell, ship and support certain equipment and otherwise conduct business with certain counterparties, primarily including China-based companies involved in advanced semiconductor manufacturing.Risk factors (Item 1A)

Laws and programs

OECD Pillar Two global minimum tax

subject to · 15%named as a risk

The tax liability from top-up tax may have a material and adverse impact to our effective tax rate.Risk factors (Item 1A)

Also named by ABNB, ACN, ADI, ADM, ADSK, AKAM, ALB, AMAT and 70 more

Inflation Reduction Act corporate alternative minimum tax

subject to · 15%named as a risk

Although we were not subject to the CAMT in our fiscal year ended June 30, 2026, the enactment of the OBBBA and interpretations of such law may result in our subjection to CAMT liability in future periods, which can have a material and adverse impact to our future effective tax rate.Risk factors (Item 1A)

Also named by EXE, HESM, JXN, NRG, Q, RRC, SO, TRGP and 2 more

U.S. tariffs

subject tonamed as a risk

The U.S. tariffs have increased our cost of revenues due to the increase in the cost of importing foreign sourced components to our U.S. facilities to build the products that we manufacture in the U.S.Risk factors (Item 1A)

Also named by A, AAPL, ACHR, ADI, AEHR, AEP, AIOT, AKAM and 170 more

One Big Beautiful Bill Act (OBBBA)

subject tonamed as a risk

The net impact of the changes provided by the OBBBA and interpretations of such law may have a material and adverse impact to our effective tax rate.Risk factors (Item 1A)

Also named by AA, ABR, ADI, ADM, ALB, AMAT, AMGN, AMKR and 121 more

Export Administration Regulations (EAR)

subject tonamed as a risk

The new rule increases compliance requirements with the EAR by imposing on exporters, re-exporters, and transferors of items subject to the EAR a responsibility to know the ownership of the parties to a transaction.Risk factors (Item 1A)

Also named by ADI, ALAB, AMD, APP, ARW, AVGO, CARR, CDRE and 40 more

International Emergency Economic Powers Act tariffs

subject tonamed as a risk

In February 2026, the U.S. Supreme Court ruled that tariffs imposed under the International Emergency Economic Powers Act were not authorized, creating uncertainty around the status of prior tariffs, potential refund processes and the scope of future presidential tariff authority.Risk factors (Item 1A)

Also named by AAOI, ANET, ARW, COHR, CSW, DECK, FIVE, IBP and 8 more

Russia sanctions

subject tonamed as a risk

The imposition of sanctions, export controls and other measures could adversely impact our business including preventing us from performing existing contracts, recognizing revenue, pursuing new business opportunities or receiving payment for products already supplied or services already performed with customers.Risk factors (Item 1A)

Also named by ACN, AIR, BAM, BF/B, CW, DASH, DIS, GIS and 5 more

U.S. Entity List

subject tonamed as a risk

Commerce may continue to add China-based entities to the U.S. Entity List and impose other end use or end user export restrictions, which could disrupt or prevent our product shipments to China-based entities, and further disrupt our revenue recognition, business operations and our ability to support our customers in China.Risk factors (Item 1A)

Also named by ALAB, AMD, APH, LITE, TER

Section 232 semiconductor investigation

subject tonamed as a risk

While the results of the investigations are currently unknown, they may result in additional tariffs and trade restrictions, which may adversely impact our business.Risk factors (Item 1A)

Also named by ADI, LITE, MRVL, MU

China rare earth export controls

subject tonamed as a risk

If our suppliers are unable to provide the components necessary to make our products because of restrictions placed on their access to rare earth elements or products derived from rare earth elements, our business, financial condition and results of operations could be materially harmed.Risk factors (Item 1A)

Also named by CDNS, MTSI, OSK, RMD

PFAS restrictions

subject tonamed as a risk

Current and proposed restrictions on per- and polyfluoroalkyl substances (“PFAS”) may negatively impact our supply chain due to potentially decreased availability, or non-availability, of PFAS-containing products or commercially feasible alternatives.Risk factors (Item 1A)

Also named by ADI, ENTG, PII, THO

BIS Affiliates Rule

subject tonamed as a risk

In November 2025, the BIS suspended the Affiliates Rule for one year until November 2026.Risk factors (Item 1A)

Technology

Inspection products

earns fromnamed as a risk

We derive a substantial percentage of our revenues from sales of inspection products.Risk factors (Item 1A)