Palantir Technologies Inc. stock research
FY2026 Q1
Palantir Technologies (PLTR) Gross Margin — Quarter Ended Mar 31, 2026
Revenue increased both sequentially and year over year, while cost of revenue decreased slightly sequentially and increased year over year. As a result, gross profit and gross margin improved compared to both prior periods.
Gross margin takeaway
Quarter ended Mar 31, 2026 · FY2026 Q1
Revenue increased both sequentially and year over year, while cost of revenue decreased slightly sequentially and increased year over year. As a result, gross profit and gross margin improved compared to both prior periods.
- The gross margin improvement was driven by revenue growth outpacing the change in cost of revenue, with cost of revenue remaining relatively stable sequentially despite higher revenue.
- Gross margin strengthened compared to the previous quarter and the same quarter last year, reflecting higher profitability at the gross level.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
86.8%
Gross profit
$1.4B
Revenue
$1.6B
Cost of revenue
$215.8M
Quarter-over-quarter change
+2.1 pts
Year-over-year change
+6.4 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, 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% |
| Mar 31, 2026 | $1.6B | $1.4B | $215.8M | 86.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Dec 31, 2025
+2.1 pts
Year-over-year change
Mar 31, 2025
+6.4 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was driven by revenue growth outpacing the change in cost of revenue, with cost of revenue remaining relatively stable sequentially despite higher revenue.
Gross margin strengthened compared to the previous quarter and the same quarter last year, reflecting higher profitability at the gross level.
Monitor the trend of cost of revenue relative to revenue growth to assess whether gross margin can be sustained.
Peer context
Latest available gross margins for related public companies.
| Company | Gross margin |
|---|---|
| Palantir Technologies Inc. (PLTR) | 86.8% |
| Salesforce, Inc. (CRM) | 76.9% |
| Oracle Corporation (ORCL) | 59.4% |