KLA Corporation stock research
FY2026 Q2
KLA (KLAC) Gross Margin — Quarter Ended Dec 31, 2025
Revenue increased while cost of revenue also grew, but gross profit rose at a faster pace, leading to a higher gross margin compared to the preceding quarter and the same quarter last year.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2026 Q2
Revenue increased while cost of revenue also grew, but gross profit rose at a faster pace, leading to a higher gross margin compared to the preceding quarter and the same quarter last year.
- The improvement in gross margin was driven by revenue growth outpacing the growth in cost of revenue, resulting in a higher proportion of revenue retained as gross profit.
- Compared to the immediately preceding quarter, gross margin showed a slight improvement. Relative to the same quarter one year earlier, gross margin was higher by a more noticeable margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
61.4%
Gross profit
$2.0B
Revenue
$3.3B
Cost of revenue
$1.3B
Quarter-over-quarter change
+0.2 pts
Year-over-year change
+1.1 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 |
|---|---|---|---|---|
| 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% |
| Dec 31, 2025 | $3.3B | $2.0B | $1.3B | 61.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+0.2 pts
Year-over-year change
Dec 31, 2024
+1.1 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The improvement in gross margin was driven by revenue growth outpacing the growth in cost of revenue, resulting in a higher proportion of revenue retained as gross profit.
Compared to the immediately preceding quarter, gross margin showed a slight improvement. Relative to the same quarter one year earlier, gross margin was higher by a more noticeable margin.
Monitor the trend in the ratio of cost of revenue to revenue to see if the favorable relationship between revenue and cost growth continues.