PL

Palantir Technologies Inc. stock research

Sep 30, 2025

FY2025 Q3

Palantir Technologies (PLTR) Gross Margin — Quarter Ended Sep 30, 2025

Revenue increased while cost of revenue rose at a slower pace, yielding higher gross profit and an improved gross margin. This pattern held when comparing the current quarter to both the preceding quarter and the same quarter one year earlier.

Gross margin takeaway

Quarter ended Sep 30, 2025 · FY2025 Q3

Revenue increased while cost of revenue rose at a slower pace, yielding higher gross profit and an improved gross margin. This pattern held when comparing the current quarter to both the preceding quarter and the same quarter one year earlier.

  • The strongest observable margin driver is the slower growth in cost of revenue relative to revenue growth, which directly expanded the gross margin.
  • Gross margin improved from the prior quarter and from the same quarter a year ago, as revenue grew faster than cost of revenue in both periods.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

82.4%

Gross profit

$973.8M

Revenue

$1.2B

Cost of revenue

$207.3M

Quarter-over-quarter change

+1.7 pts

Year-over-year change

+2.7 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Dec 31, 2024$827.5M$653.0M$174.5M78.9%
Mar 31, 2025$883.9M$710.9M$173.0M80.4%
Jun 30, 2025$1.0B$810.8M$192.9M80.8%
Sep 30, 2025$1.2B$973.8M$207.3M82.4%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Jun 30, 2025

+1.7 pts

Year-over-year change

Sep 30, 2024

+2.7 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The strongest observable margin driver is the slower growth in cost of revenue relative to revenue growth, which directly expanded the gross margin.

Gross margin improved from the prior quarter and from the same quarter a year ago, as revenue grew faster than cost of revenue in both periods.

Monitor the trend of cost of revenue growth relative to revenue growth to assess whether the margin improvement can be sustained.