The Clorox Company stock research
FY2026 Q2
The Clorox (CLX) Gross Margin — Quarter Ended Dec 31, 2025
Revenue was essentially stable versus the same quarter one year earlier and higher than the preceding quarter. Gross profit and cost of revenue both increased from the prior quarter, resulting in an improved gross margin relative to that period; versus the year-ago quarter, gross profit was slightly lower while cost of revenue was marginally higher, yielding a modestly lower gross margin.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue was essentially stable versus the same quarter one year earlier and higher than the preceding quarter. Gross profit and cost of revenue both increased from the prior quarter, resulting in an improved gross margin relative to that period; versus the year-ago quarter, gross profit was slightly lower while cost of revenue was marginally higher, yielding a modestly lower gross margin.
- The strongest observable driver of gross margin change is the relationship between revenue growth and cost of revenue growth from the preceding quarter. Revenue rose materially while cost of revenue increased by a smaller proportion, leading to an expansion in gross margin.
- Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened marginally.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
43.2%
Gross profit
$722.0M
Revenue
$1.7B
Cost of revenue
$951.0M
Quarter-over-quarter change
+1.4 pts
Year-over-year change
-0.6 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $1.7B | $722.0M | $951.0M | 43.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+1.4 pts
Year-over-year change
Dec 31, 2024
-0.6 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin change is the relationship between revenue growth and cost of revenue growth from the preceding quarter. Revenue rose materially while cost of revenue increased by a smaller proportion, leading to an expansion in gross margin.
Compared to the preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened marginally.
Monitor the trajectory of cost of revenue relative to revenue in subsequent quarters to assess whether gross margin can sustain its improvement from the prior quarter.