PLTRNEUTRAL

PLTR Return on Equity (ROE) Analysis

38.1%

Higher than 80% of Technology sector peers

Updated 539h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity; Palantir's current 38.1% means it earns $0.381 per dollar of equity.

Sector Performance

80th percentile

PLTR

38.1%

Sector Median

8.2%

Sector Avg

-3.6%

Prior Period

32.6%(Aug 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders' equity; Palantir's current 38.1% means it earns $0.381 per dollar of equity.

This is far above the sector median of 7.5%, placing Palantir at the 83rd percentile among technology peers. The trend data are limited: year-over-year change is not available (N/A), but quarter-over-quarter ROE rose from 32.6% to 38.1%, a +16.9% increase. The high level alongside this positive quarterly momentum suggests strong earnings efficiency, yet the lack of longer-term trend data limits confidence in its persistence. For investors, the elevated ROE reduces risk relative to peers, but the absence of YoY context leaves the durability of this performance unclear. This metric supports a NEUTRAL verdict: strong current profitability is offset by unverified sustainability, so no directional bias is warranted.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about PLTR?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

How does PLTR's Return on Equity (ROE) compare to its sector?

PLTR's Return on Equity (ROE) of 38.1% compares to a Technology sector median of 8.2%, placing it in the 80th percentile.

Who are PLTR's closest peers by Return on Equity (ROE)?

The closest Technology peers by Return on Equity (ROE) include: MDB (-1.0%), ZS (-3.7%), APLD (-5.6%), SMTC (-5.8%), AMBA (-12.8%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.