KLA Corporation stock research
FY2025 Q1
KLA (KLAC) Gross Margin — Quarter Ended Sep 30, 2024
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter and was also lower than the year-ago quarter, as cost of revenue grew at a faster pace than revenue.
Gross margin takeaway
Quarter ended Sep 30, 2024 · FY2025 Q1
Revenue and gross profit both increased compared to the prior quarter and the same quarter last year. Gross margin weakened slightly from the prior quarter and was also lower than the year-ago quarter, as cost of revenue grew at a faster pace than revenue.
- The strongest observable driver of gross margin was the relationship between revenue and cost of revenue: revenue increased while cost of revenue rose more rapidly, compressing margin.
- Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher in both comparisons.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
59.6%
Gross profit
$1.7B
Revenue
$2.8B
Cost of revenue
$1.1B
Quarter-over-quarter change
-1.0 pts
Year-over-year change
-0.9 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, 2023 | $2.5B | $1.5B | $976.7M | 60.7% |
| Mar 31, 2024 | $2.4B | $1.4B | $993.9M | 57.9% |
| Jun 30, 2024 | $2.6B | $1.6B | $1.0B | 60.7% |
| Sep 30, 2024 | $2.8B | $1.7B | $1.1B | 59.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
-1.0 pts
Year-over-year change
Sep 30, 2023
-0.9 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable driver of gross margin was the relationship between revenue and cost of revenue: revenue increased while cost of revenue rose more rapidly, compressing margin.
Compared to the immediately preceding quarter, gross margin was lower; compared to the same quarter one year earlier, gross margin was also lower. Revenue and gross profit were higher in both comparisons.
Monitor the trajectory of cost of revenue relative to revenue, as its faster growth has pressured gross margin.