KLA Corporation Common Stock

Credit and liquidity · Access to capital and financing

Our leveraged capital structure may adversely affect our financial condition, results of operations and net income per share. Our substantial amount of indebtedness could have adverse consequences including an impairment of our ability to obtain additional financing in the future.

International and currency · International operations and emerging markets

A majority of our total revenues are derived from outside the U.S., and we maintain significant operations outside the U.S. We are exposed to numerous risks as a result of the international nature of our business and operations.

International and currency · Foreign exchange and currency exposure

We are exposed to foreign currency exchange rate fluctuations. Although we hedge certain currency risks, we may still be adversely affected by changes in foreign currency exchange rates or declining economic conditions in these countries.

Market and investment · Interest rate and yield curve risk

We are exposed to fluctuations in interest rates and the market values of our portfolio investments, and an impairment of our investments could harm our earnings. Our investment portfolio primarily consists of both corporate and government debt securities that are susceptible to changes in market interest rates and bond yields.

Market position and competition · Disruptive competitors and new market entrants

We face competition from smaller emerging companies whose strategy is to provide a portion of the products and services that we offer, using innovative technology to sell products into specialized markets.

Strategic execution · Merger acquisition and divestiture risks

Acquisitions are an important element of our strategy but, because of the uncertainties involved, we may not find suitable acquisition candidates and we may not be able to successfully integrate and manage acquired businesses.

Economic and market conditions · Economic recession and downturns

Demand for our products is ultimately driven by the global demand for electronic devices by consumers and businesses. Economic uncertainty frequently leads to reduced consumer and business spending, and can cause our customers to decrease, cancel or delay their equipment and service orders.

Economic and market conditions · Market volatility and financial crises

A decline in the condition of the global financial markets could adversely impact the market values or liquidity of our investments. Our investment portfolio includes corporate and government securities, money market funds and other types of debt and equity investments.

Economic and market conditions · Credit market conditions

The tightening of credit markets, rising interest rates and concerns regarding the availability of credit can make it more difficult for our customers to raise capital, whether debt or equity, to finance their purchases of capital equipment, including the products we sell.

Geopolitical and trade · Trade policies tariffs and sanctions

Export controls, sanctions and other trade-related regulations issued by Commerce and other governmental authorities may limit our ability to sell certain products or provide certain services to certain customers, particularly in China, and may significantly harm our business, results of operations, financial condition and cash flows.

Geopolitical and trade · Trade policies tariffs and sanctions

In 2025, the U.S. implemented a number of tariffs on goods imported into the U.S., on a country and industry-specific basis (including aluminum, copper and steel). 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.

Geopolitical and trade · Political instability and government changes

Political instability, geopolitical tensions, natural disasters, legal or regulatory changes, acts of war such as the wars between Russia and Ukraine and the military conflicts in the Middle East and any further escalation thereof, or terrorism in regions where we, our customers or our suppliers have operations.

Geopolitical and trade · International conflicts and tensions

We maintain significant operations in Israel. Since the establishment of the State of Israel in 1948, a number of armed conflicts have taken place between Israel and its Arab neighbors, and a state of hostility varying in degree and intensity has led to security and economic challenges for Israel.

Natural and catastrophic events · Climate change and environmental impact

Certain of these events may become more frequent or intense as a result of climate change, or other environmental or social issues, which may in some instances also contribute to chronic changes such as sea-level rise or changes to meteorological or hydrological patterns that may also disrupt our or our suppliers' operations.

Natural and catastrophic events · Terrorism and security threats

We are predominantly uninsured for losses and interruptions caused by terrorist acts and acts of war. If international political instability or geopolitical tensions continue or increase, our business and results of operations could be harmed.

Industry regulation · Regulatory compliance and changes

We are subject to various risks related to compliance with laws, rules and regulations enacted by legislative bodies and/or regulatory agencies in the countries in which we operate and with which we must comply, including environmental, safety, antitrust, anti-corruption/anti-bribery, unclaimed property, conflict minerals and other responsible sourcing practices.

Industry regulation · Safety and environmental regulations

We are subject to various domestic and international environmental laws and regulations, including those that control and restrict the use, transportation, emission, discharge, storage, and disposal of certain chemicals, gases and other substances. Current and proposed restrictions on per- and polyfluoroalkyl substances (PFAS) may negatively impact our supply chain.

Reputation and brand · Esg environmental social governance performance

Differing expectations, requirements and attention to ESG matters from our stakeholders, including any targets or other ESG initiatives, could result in additional costs or risks or adversely impact our business.

Human capital and workforce · Talent acquisition and retention

We depend on key personnel to manage our business effectively, and if we are unable to attract, retain and motivate our key employees, our sales and product development could be harmed. Our employees are vital to our success, and our key management, engineering and other employees are difficult to replace.

Supply chain and procurement · Supplier operation and dependance

We outsource a number of services to third-party service providers, which decreases our control over the performance of these functions. Disruptions or delays at our third-party service providers could adversely impact our operations.