KLAC · 10-K · 2026A · Full report

Gross Margin Drivers

KLA CORP · 2026-08-06 · Importance 20 · Surprise 24 · No source text

Gross margin increased 0.4 percentage points to 61.3% in fiscal 2026 from 60.9% in fiscal 2025, despite higher installation, warranty and tariff costs.,Revenue volume contributed 0.5 percentage points to the margin increase through greater leverage of existing infrastructure, while product and service mix reduced margin by 0.2 percentage points.,Manufacturing labor, overhead and efficiencies added 0.2 percentage points, reflecting cost management and productivity gains as manufacturing activity scaled.,Other service and manufacturing costs reduced margin by 0.1 percentage points because of higher installation, warranty and tariff costs, partially offset by lower inventory-related charges.

Key facts

• Costs of revenues for year ended June 30, 2026: $5,255,060 (thousands). source
• Gross margin for year ended June 30, 2026: 61.3%. source
• Other service and manufacturing costs in fiscal 2026 included higher installation and warranty costs and increased costs due to tariffs, partially offset by lower inventory-related charges. source

Impact estimates