The Clorox Company stock research
FY2026 Q1
The Clorox (CLX) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened versus both periods, reflecting a larger proportional decline in gross profit relative to revenue.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q1
Revenue and gross profit both decreased compared to the prior quarter and the same quarter last year, while cost of revenue also declined. Gross margin weakened versus both periods, reflecting a larger proportional decline in gross profit relative to revenue.
- The decline in gross profit outpaced the decline in revenue, leading to a lower gross margin. This indicates that cost of revenue did not decrease proportionally with revenue.
- Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit fell while cost of revenue decreased at a slower rate. Versus the same quarter one year earlier, gross margin also weakened, with revenue and gross profit lower and cost of revenue declining less sharply.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
41.7%
Gross profit
$596.0M
Revenue
$1.4B
Cost of revenue
$833.0M
Quarter-over-quarter change
-4.8 pts
Year-over-year change
-4.1 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Dec 31, 2024 | $1.7B | $738.0M | $948.0M | 43.8% |
| Mar 31, 2025 | $1.7B | $744.0M | $924.0M | 44.6% |
| Jun 30, 2025 | $2.0B | $924.0M | $1.1B | 46.5% |
| Sep 30, 2025 | $1.4B | $596.0M | $833.0M | 41.7% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-4.8 pts
Year-over-year change
Sep 30, 2024
-4.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The decline in gross profit outpaced the decline in revenue, leading to a lower gross margin. This indicates that cost of revenue did not decrease proportionally with revenue.
Compared to the immediately preceding quarter, gross margin weakened as revenue and gross profit fell while cost of revenue decreased at a slower rate. Versus the same quarter one year earlier, gross margin also weakened, with revenue and gross profit lower and cost of revenue declining less sharply.
Monitor the trajectory of cost of revenue relative to revenue in upcoming quarters to assess margin stability.