KLACNEUTRAL

KLAC Gross Margin Analysis

61.4%

Higher than 60% of TECHNOLOGY sector peers

Updated 5h ago·SEC filings & market data

Key Takeaway

Gross margin is the share of revenue left after paying direct production costs, so 61.1% means KLAC keeps $0.611 of every sales dollar before other expenses.

Sector Performance

60th percentile

KLAC

61.4%

Sector Median

57.3%

Sector Avg

56.5%

Prior Period

61.1%(Aug 2026)

→ Stable

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Deep Analysis

Gross margin is the share of revenue left after paying direct production costs, so 61.1% means KLAC keeps $0.611 of every sales dollar before other expenses.

This is above the sector median of 44.3%, placing KLAC in the 74th percentile among peers, indicating a higher profitability profile than most. The trend is not available: the year-over-year change is N/A, the quarter-over-quarter change is N/A, and historical values show only the current 61.1% with no prior quarters. A high margin combined with an unknown trend leaves uncertainty about whether this level is stable or eroding, so the investment risk is moderate rather than clearly favorable or unfavorable. This metric supports the overall NEUTRAL verdict: the strong current level is a positive, but the lack of trend data prevents it from justifying a bullish stance.

Frequently Asked Questions

What does the Gross Margin tell investors about KLAC?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

How does KLAC's Gross Margin compare to its sector?

KLAC's Gross Margin of 61.4% compares to a TECHNOLOGY sector median of 57.3%, placing it in the 60th percentile.

Who are KLAC's closest peers by Gross Margin?

The closest TECHNOLOGY peers by Gross Margin include: QCOM (53.1%), TXN (61.4%), LRCX (51.7%), NOW (70.7%), INTC (40.4%).

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Learn More About Gross Margin

Gross Margin vs Net Margin: Why the Gap Between Them Tells You Everything

Gross margin vs net margin: learn what the spread between them reveals about operating leverage, cost structure, and early warning signs in any stock.

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.