KLA Corporation stock research
FY2025 Q3
KLA (KLAC) Gross Margin — Quarter Ended Mar 31, 2025
Revenue and gross profit were stable compared to the immediately preceding quarter, while cost of revenue remained at a similar level, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin strengthened as cost of revenue grew at a slower pace than revenue.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q3
Revenue and gross profit were stable compared to the immediately preceding quarter, while cost of revenue remained at a similar level, resulting in a slightly improved gross margin. Compared to the same quarter one year earlier, revenue and gross profit were higher, and gross margin strengthened as cost of revenue grew at a slower pace than revenue.
- The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew while cost of revenue increased at a slower rate year over year, supporting margin expansion.
- Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin was higher.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.6%
Gross profit
$1.9B
Revenue
$3.1B
Cost of revenue
$1.2B
Quarter-over-quarter change
+1.3 pts
Year-over-year change
+3.7 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 |
|---|---|---|---|---|
| Jun 30, 2024 | $2.6B | $1.6B | $1.0B | 60.7% |
| Sep 30, 2024 | $2.8B | $1.7B | $1.1B | 59.6% |
| Dec 31, 2024 | $3.1B | $1.9B | $1.2B | 60.3% |
| Mar 31, 2025 | $3.1B | $1.9B | $1.2B | 61.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.3 pts
Year-over-year change
Mar 31, 2024
+3.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The strongest observable margin driver is the relationship between revenue and cost of revenue: revenue grew while cost of revenue increased at a slower rate year over year, supporting margin expansion.
Compared to the immediately preceding quarter, gross margin improved slightly. Compared to the same quarter one year earlier, gross margin was higher.
Monitor the trend in cost of revenue relative to revenue, as its growth rate directly influences gross margin stability.