KMBCAUTIOUS

KMB Gross Margin Analysis

38.3%

Updated 57h ago·SEC filings & market data

Key Takeaway

Gross margin is the percentage of each sales dollar left after covering the direct costs of making the product, so KMB keeps $0.383 from every $1 of revenue before other expenses.

Sector Performance

36th percentile

KMB

38.3%

Sector Median

46.6%

Sector Avg

47.6%

Prior Period

36.8%(Jul 2026)

↑ Improving

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Deep Analysis

Gross margin is the percentage of each sales dollar left after covering the direct costs of making the product, so KMB keeps $0.383 from every $1 of revenue before other expenses.

That 38.3% sits below the sector median of 44.7%, placing the company at the 40th percentile among peers. The year-over-year change is not available, but quarter-over-quarter the margin rose 4.1% from 36.8% to 38.3%, showing a recent uptick. The combination of a level below the sector median with only a one-quarter improvement means the company still has ground to cover, though the direction is favorable. This mixed picture does not override the overall CAUTIOUS verdict, because the margin remains under the typical peer range and the trend lacks a longer track record. The metric partly supports caution, but the quarterly gain suggests monitoring for whether the improvement continues.

Frequently Asked Questions

What does the Gross Margin tell investors about KMB?

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 KMB's closest peers by Gross Margin?

The closest peers by Gross Margin include: LVS (46.9%), ORLY (51.4%), MPWR (55.2%), NEM (56.0%), REI (56.0%).

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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.