KLA Corporation Quarterly report [Sections 13 or 15(d)]

Quarterly report [Sections 13 or 15(d)]

MARKETABLE SECURITIES

MARKETABLE SECURITIES

3 Months Ended

Sep. 30, 2026

Investments, Debt and Equity Securities [Abstract]

The amortized cost and fair value of our fixed income marketable securities as of the dates indicated below were as follows:


As of September 30, 2026 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	1,321,654	$	438	$	(7,932)	$	1,314,160
Money market funds and other	1,132,489		—		—		1,132,489
Municipal securities	16,901		—		(50)		16,851
Sovereign securities	33,969		1		(51)		33,919
U.S. Government agency securities	79,159		34		(384)		78,809
U.S. Treasury securities	1,374,698		49		(16,609)		1,358,138


Subtotal	3,958,870		522		(25,026)		3,934,366
Add: Time deposits(1)	436,957		—		—		436,957
Less: Cash equivalents	1,195,373		—		(2)		1,195,371
Marketable securities(2)	$	3,200,454	$	522	$	(25,024)	$	3,175,952


As of June 30, 2026 (In thousands)	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
Corporate debt securities	$	1,304,718	$	1,123	$	(2,316)	$	1,303,525
Money market funds and other	1,233,035		—		—		1,233,035
Municipal securities	23,417		12		(10)		23,419
Sovereign securities	40,245		—		(27)		40,218
U.S. Government agency securities	75,848		81		(187)		75,742
U.S. Treasury securities	1,363,089		266		(7,644)		1,355,711


Subtotal	4,040,352		1,482		(10,184)		4,031,650
Add: Time deposits(1)	490,231		—		—		490,231
Less: Cash equivalents	1,316,087		—		—		1,316,087
Marketable securities(2)	$	3,214,496	$	1,482	$	(10,184)	$	3,205,794

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(1) Time deposits excluded from fair value measurements.

(2) Excludes equity marketable securities.

Our investment portfolio includes both corporate and government securities that have a maximum maturity of three years. The longer the duration of these securities, the more susceptible they are to changes in market interest rates and bond yields. As yields increase, those securities with a lower yield-at-cost show a mark-to-market unrealized loss. Most of our unrealized losses are due to changes in market interest rates and bond yields. We believe that we have the ability to realize the full value of all these investments upon maturity. As of September 30, 2026, we had 685 investments in a gross unrealized loss position. The following table summarizes the fair value and gross unrealized losses of our investments that were in an unrealized loss position as of the dates indicated below, none of which were in a continuous loss position for 12 months or more:


As of September 30, 2026 (In thousands)	Fair Value		Gross Unrealized Losses
Corporate debt securities	$	977,020	$	(7,932)
Municipal securities	16,851		(50)
Sovereign securities	27,886		(51)
U.S. Government agency securities	55,819		(384)
U.S. Treasury securities	1,297,852		(16,609)
Total	$	2,375,428	$	(25,026)


As of June 30, 2026 (In thousands)	Fair Value		Gross Unrealized Losses
Corporate debt securities	$	703,303	$	(2,316)
Municipal securities	9,957		(10)
Sovereign securities	37,200		(27)
U.S. Government agency securities	47,855		(187)
U.S. Treasury securities	1,185,956		(7,644)
Total	$	1,984,271	$	(10,184)

The contractual maturities of securities classified as available-for-sale, regardless of their classification on our Condensed Consolidated Balance Sheets, as of the date indicated below were as follows:


As of September 30, 2026 (In thousands)	Amortized Cost		Fair Value
Due within one year	$	1,418,011	$	1,415,383
Due after one year through three years	1,782,443		1,760,569
Total	$	3,200,454	$	3,175,952

Actual maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties. Realized gains and losses on available-for-sale securities for the three months ended September 30, 2026 and 2025 were immaterial.

The costs for our equity marketable securities were $22.9 million as of both September 30, 2026, and June 30, 2026. Unrealized gains and losses for our equity marketable securities for the three months ended September 30, 2026 and 2025 were immaterial.