KLA Corporation stock research
FY2026 Q1
KLA (KLAC) Gross Margin — Quarter Ended Sep 30, 2025
Revenue and cost of revenue were both stable compared to the immediately preceding quarter, leaving gross profit nearly unchanged while gross margin weakened slightly. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin takeaway
Quarter ended Sep 30, 2025 · FY2026 Q1
Revenue and cost of revenue were both stable compared to the immediately preceding quarter, leaving gross profit nearly unchanged while gross margin weakened slightly. Versus the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
- Gross margin improved compared with the year-ago quarter, driven by a larger proportion of revenue flowing through to gross profit relative to cost of revenue. The sequential weakening was minimal and tied to a slightly higher cost of revenue relative to revenue.
- Compared with the immediately preceding quarter, revenue was stable, cost of revenue was stable, and gross margin weakened modestly. Compared with the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.3%
Gross profit
$2.0B
Revenue
$3.2B
Cost of revenue
$1.2B
Quarter-over-quarter change
-0.7 pts
Year-over-year change
+1.7 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 |
|---|---|---|---|---|
| Dec 31, 2024 | $3.1B | $1.9B | $1.2B | 60.3% |
| Mar 31, 2025 | $3.1B | $1.9B | $1.2B | 61.6% |
| Jun 30, 2025 | $3.2B | $2.0B | $1.2B | 62.0% |
| Sep 30, 2025 | $3.2B | $2.0B | $1.2B | 61.3% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2025
-0.7 pts
Year-over-year change
Sep 30, 2024
+1.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Gross margin improved compared with the year-ago quarter, driven by a larger proportion of revenue flowing through to gross profit relative to cost of revenue. The sequential weakening was minimal and tied to a slightly higher cost of revenue relative to revenue.
Compared with the immediately preceding quarter, revenue was stable, cost of revenue was stable, and gross margin weakened modestly. Compared with the same quarter one year earlier, revenue, gross profit, and cost of revenue were all higher, and gross margin improved.
Monitor the slight weakening in gross margin relative to the prior quarter, as it indicates a shift in the relationship between revenue and cost of revenue.