PLTRNEUTRAL

PLTR Gross Margin Analysis

86.8%

Higher than 93% of Technology sector peers

Updated 285h ago·SEC filings & market data

Key Takeaway

With a gross margin of 86.8%, Palantir keeps 86.8 cents of every dollar of revenue after deducting the direct costs of delivering its software and services — a measure of how efficiently the company generates profit from its core operations.

Sector Performance

93th percentile

PLTR

86.8%

Sector Median

65.3%

Sector Avg

60.5%

Prior Period

84.6%(May 2026)

↑ Improving

📊

Deep Analysis

This far exceeds the sector median of 65.2%, placing Palantir in the 93rd percentile among Technology peers, meaning only 7% of comparable companies have a higher gross margin. Trend data is limited: year-over-year change is not available, but the most recent quarter-over-quarter change shows an increase of 2.6 percentage points from the prior quarter’s 84.2%. The combination of an already elite margin level and a rising trend suggests low operational risk and strong pricing power, making the stock less vulnerable to cost pressures. This metric contradicts the overall NEUTRAL verdict — a high and improving gross margin typically supports a more positive investment view, so the neutral stance likely reflects other factors such as valuation or growth concerns.

Frequently Asked Questions

What does the Gross Margin tell investors about PLTR?

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 PLTR's Gross Margin compare to its sector?

PLTR's Gross Margin of 86.8% compares to a Technology sector median of 65.3%, placing it in the 93th percentile.

Who are PLTR's closest peers by Gross Margin?

The closest Technology peers by Gross Margin include: NET (71.2%), MTSI (56.9%), DOCN (56.1%), NVDA (74.9%), APLD (42.5%).

📚

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.