KLACNEUTRAL

Gross Margin

61.1%

Updated 80h ago

Sector Performance

75th percentile

KLAC

61.1%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin, the percentage of revenue a company keeps after covering the direct costs of producing its products, is currently 61.1%, meaning KLAC retains roughly 61 cents on every dollar of sales.

This sits well above the sector median of 44.4%, placing KLAC in the 75th percentile among its peers. The trend direction is not available—neither the year-over-year change nor the quarter-over-quarter change is provided, so no historical movement can be assessed. Without a trend, the high gross margin relative to peers suggests a strong cost structure or pricing power, but the lack of directional data leaves uncertainty about whether this level is sustainable or eroding. This static picture of above-average profitability alone does not signal a clear risk or opportunity; it simply confirms a competitive advantage at a single point in time. The NEUTRAL verdict is supported because the current margin level is favorable, yet the absence of trend information prevents a more decisive bullish or bearish 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.

Who are KLAC's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

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.