Palantir Technologies Inc. stock research
FY2025 Q4
Palantir Technologies (PLTR) Gross Margin — Quarter Ended Dec 31, 2025
Revenue and gross profit both increased compared with the preceding quarter and the same quarter one year earlier, while cost of revenue rose at a slower pace. Gross margin improved sequentially and year over year, reflecting a more favorable relationship between revenue and cost of revenue.
Gross margin takeaway
Quarter ended Dec 31, 2025 · FY2025 Q4
Revenue and gross profit both increased compared with the preceding quarter and the same quarter one year earlier, while cost of revenue rose at a slower pace. Gross margin improved sequentially and year over year, reflecting a more favorable relationship between revenue and cost of revenue.
- Revenue grew faster than cost of revenue relative to both the prior quarter and the year-ago period, which lifted gross profit and expanded gross margin. The strongest observable driver was the divergence between revenue growth and cost of revenue growth.
- Compared with the immediately preceding quarter, gross margin improved, driven by higher revenue and gross profit with a relatively smaller increase in cost of revenue. Relative to the same quarter one year earlier, gross margin also increased, supported by stronger revenue and gross profit versus cost of revenue growth.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
84.6%
Gross profit
$1.2B
Revenue
$1.4B
Cost of revenue
$216.0M
Quarter-over-quarter change
+2.2 pts
Year-over-year change
+5.7 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 |
|---|---|---|---|---|
| Mar 31, 2025 | $883.9M | $710.9M | $173.0M | 80.4% |
| Jun 30, 2025 | $1.0B | $810.8M | $192.9M | 80.8% |
| Sep 30, 2025 | $1.2B | $973.8M | $207.3M | 82.4% |
| Dec 31, 2025 | $1.4B | $1.2B | $216.0M | 84.6% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 30, 2025
+2.2 pts
Year-over-year change
Dec 31, 2024
+5.7 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
Revenue grew faster than cost of revenue relative to both the prior quarter and the year-ago period, which lifted gross profit and expanded gross margin. The strongest observable driver was the divergence between revenue growth and cost of revenue growth.
Compared with the immediately preceding quarter, gross margin improved, driven by higher revenue and gross profit with a relatively smaller increase in cost of revenue. Relative to the same quarter one year earlier, gross margin also increased, supported by stronger revenue and gross profit versus cost of revenue growth.
Monitor whether revenue growth continues to outpace cost of revenue growth in future quarters, as this relationship directly drives gross margin direction.