Palantir Technologies Inc. stock research
FY2025 Q1
Palantir Technologies (PLTR) Gross Margin — Quarter Ended Mar 31, 2025
Revenue increased and cost of revenue decreased slightly from the previous quarter, resulting in higher gross profit and an improved gross margin. Compared with the same quarter one year earlier, revenue grew but cost of revenue rose at a faster pace, leading to a lower gross margin.
Gross margin takeaway
Quarter ended Mar 31, 2025 · FY2025 Q1
Revenue increased and cost of revenue decreased slightly from the previous quarter, resulting in higher gross profit and an improved gross margin. Compared with the same quarter one year earlier, revenue grew but cost of revenue rose at a faster pace, leading to a lower gross margin.
- The sequential improvement in gross margin was accompanied by a higher revenue base and a nearly flat cost of revenue, while the year-over-year decline reflects a larger increase in cost of revenue relative to revenue growth.
- Compared to the previous quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
80.4%
Gross profit
$710.9M
Revenue
$883.9M
Cost of revenue
$173.0M
Quarter-over-quarter change
+1.5 pts
Year-over-year change
-1.2 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Jun 30, 2024 | $678.1M | $549.6M | $128.6M | 81.0% |
| Sep 30, 2024 | $725.5M | $578.9M | $146.6M | 79.8% |
| Dec 31, 2024 | $827.5M | $653.0M | $174.5M | 78.9% |
| Mar 31, 2025 | $883.9M | $710.9M | $173.0M | 80.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2024
+1.5 pts
Year-over-year change
Mar 31, 2024
-1.2 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The sequential improvement in gross margin was accompanied by a higher revenue base and a nearly flat cost of revenue, while the year-over-year decline reflects a larger increase in cost of revenue relative to revenue growth.
Compared to the previous quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin weakened.
Monitor the trend of cost of revenue relative to revenue, as it has shown divergent year-over-year behavior.