KLA (KLAC) risk factors: FY2026 10-K

1. We are exposed to risks associated with a weakening in the condition of the financial markets and the global economy.
2. 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. We expect these conditions to continue in the foreseeable future.reworded
3. 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 innew
4. China, and may significantly harm our business, results of operations, financial condition and cash flows, unless we are able to obtain required licenses.newChina
5. Recently announced and future U.S. tariffs, retaliatory trade measures and other trade restrictions, as well as uncertainty regarding tariff authority, implementation and refund processes, may have a material adverse impact on our results of operations.newTariffs
6. We might be involved in claims or disputes related to IP or other confidential information that may be costly to resolve, prevent us from selling or using the challenged technology and seriously harm our operating results and financial condition.
7. We are exposed to various risks related to the legal, regulatory and tax environments in which we perform our operations and conduct our business.
8. 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.
9. 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.
10. 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.
11. We rely upon critical information systems, including our ERP system, for daily business operations and financial reporting, and system failures, implementation issues, or limited access to critical information could adversely affect our business operations.new
12. 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. We are also exposed to risks in connection with strategic alliances or collaborative arrangements.
13. Disruption of our manufacturing facilities, other operations, suppliers, or customers due to climate change, natural disasters, public health crises, terrorism, acts of war or other catastrophic events could result in order cancellations, delivery delays, supply chain disruption or loss of customers and could seriously harm our business.reworded
14. 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.
15. We self-insure certain risks including earthquake risk. If one or more of the uninsured events occurs, we could suffer major financial loss.
16. 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.
17. 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. In addition, we and our stockholders are exposed to risks related to the volatility of the market for our common stock.Interest rates
18. We are exposed to risks associated with our interest rate hedging activities.newInterest rates
19. We are exposed to risks in connection with tax and regulatory compliance audits in various jurisdictions.
20. A change in our effective tax rate can have a significant adverse impact on our business.
21. Compliance with federal securities laws, rules and regulations, as well as NASDAQ requirements, has become increasingly complex, and the significant attention and expense we must devote to those areas may have an adverse impact on our business.
22. A change in accounting standards or practices or a change in existing taxation rules or practices (or changes in interpretations of such standards, practices or rules) can have a significant effect on our reported results and may even affect reporting of transactions completed before the change is effective.

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1. Ongoing changes in the technology industry, including AI-related developments and changes in semiconductor manufacturing processes, customer investment patterns and end-market demand, could expose our business to significant risks.newAI
2. We are exposed to risks associated with a highly concentrated customer base.
3. We operate in industries that have historically been cyclical, including the semiconductor industry, and customer purchasing decisions are highly dependent on local and global economic conditions, industry conditions, capital spending patterns and AI-related investment trends. If we fail to respond to industry cycles, our business, financial condition and operating results could be adversely impacted.rewordedAI
4. We are exposed to risks related to the development, adoption, governance and use of AI by us, our competitors and other third parties.rewordedAI

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1. If we do not develop and introduce new products and technologies in a timely manner in response to changing market conditions or customer requirements, our business could be seriously harmed.
2. Our success is dependent in part on our technology and other proprietary rights. If we are unable to maintain our lead or protect our proprietary technology, we may lose valuable assets.
3. Our future performance depends, in part, upon our ability to continue to compete successfully worldwide.
4. Our business would be harmed if we do not receive parts, materials and subassemblies sufficient in number and performance to meet our production requirements and product specifications in a timely, cost-effective and compliant manner.reworded
5. If we fail to operate our business in accordance with our business plan, our operating results, business and stock price may be significantly and adversely impacted.
6. We have a leveraged capital structure.
7. Our leveraged capital structure may adversely affect our financial condition, results of operations and net income per share.
8. There can be no assurance that we will continue to declare cash dividends at all or in any particular amounts.
9. We are exposed to risks related to our commercial terms and conditions, including our indemnification of third parties, as well as the performance of our products.
10. There are risks associated with our receipt of government funding.reworded
11. We have recorded significant asset impairment, restructuring and inventory write-off charges and may do so again in the future, which could have a material negative impact on our results of operations.
12. We are exposed to risks related to our receivables factoring and banking arrangements.
13. We are subject to the risks of additional government actions in the event we were to breach the terms of any settlement arrangement into which we have entered.
14. Our Bylaws designate the Court of Chancery of the State of Delaware as the sole and exclusive forum for certain actions and proceedings, which could limit the ability of our stockholders to obtain a judicial forum of their choice for disputes with the Company or its directors, officers or employees.

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Headings in the FY2025 10-K with no match this year.

1. Over the past several years, there have been a variety of rules and regulations issued by Commerce that have had an impact on our ability to sell certain products and provide certain services to certain customers in China. These rules and regulations may significantly harm our business, results of operations, financial condition and cash flows in future periods, unless we are able to obtain required licenses.
2. Recently announced and future U.S. tariffs or other restrictions placed on imports, retaliatory trade measures taken by other countries and resulting trade wars may have a material adverse impact on our results of operations.
3. We rely upon certain critical information systems for our daily business operations. Our inability to use or access our information systems at critical points in time could unfavorably impact our business operations.
4. Ongoing changes in the technology industry, as well as the semiconductor industry in particular, could expose our business to significant risks.