Revenue growth accelerated to 92.8% YoY in 2026Q2, with gross margin expanding to 84.7% and operating margin reaching 47.1%, reflecting strong operating leverage and pricing power.
Palantir Technologies Inc. (PLTR) annual income statement — 8-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 |
|---|
| Sales/Revenue | 6.16B | 4.48B | 2.87B | 2.23B | 1.91B | 1.54B | 1.09B | 742.55M | 595.41M |
| Revenue Growth % | 78.92% | 56.18% | 28.79% | 16.75% | 23.61% | 41.11% | 47.15% | 24.71% | - |
| Cost of Goods Sold | 935.94M | 789.18M | 565.99M | 431.11M | 408.55M | 339.4M | 352.55M | 242.37M | 165.4M |
| COGS % of Revenue | - | 17.63% | 19.75% | 19.38% | 21.44% | 22.01% | 32.26% | 32.64% | 27.78% |
| Gross Profit | 5.22B | 3.69B | 2.3B | 1.79B | 1.5B | 1.2B | 740.13M | 500.18M | 430.01M |
| Gross Margin % | 84.8% | 82.37% | 80.25% | 80.62% | 78.56% | 77.99% | 67.74% | 67.36% | 72.22% |
| Gross Profit Growth % | - | 60.31% | 28.18% | 19.81% | 24.52% | 62.47% | 47.97% | 16.32% | - |
| Operating Expenses | 2.59B | 2.27B | 1.99B | 1.67B | 1.66B | 1.61B | 1.91B | 1.08B | 1.05B |
| OpEx % of Revenue | - | 50.77% | 69.42% | 75.23% | 87.02% | 104.65% | 175.15% | 144.99% | 176.93% |
| Selling, General & Admin | 1.94B | 1.71B | 1.48B | 1.27B | 1.3B | 1.23B | 1.35B | 771.06M | 768M |
| SG&A % of Revenue | - | 38.31% | 51.69% | 57.05% | 68.15% | 79.52% | 123.84% | 103.84% | 128.99% |
| Research & Development | 641.24M | 557.68M | 507.88M | 404.62M | 359.68M | 387.49M | 560.66M | 305.56M | 285.45M |
| R&D % of Revenue | - | 12.46% | 17.72% | 18.19% | 18.87% | 25.13% | 51.31% | 41.15% | 47.94% |
| Other Operating Expenses | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Operating Income | 2.63B | 1.41B | 310.4M | 119.97M | -161.2M | -411.05M | -1.17B | -576.44M | -623.44M |
| Operating Margin % | 42.8% | 31.6% | 10.83% | 5.39% | -8.46% | -26.66% | -107.41% | -77.63% | -104.71% |
| Operating Income Growth % | - | 355.54% | 158.74% | 174.42% | 60.78% | 64.98% | -103.61% | 7.54% | - |
| EBITDA | 2.66B | 1.44B | 341.99M | 153.32M | -138.68M | -396.15M | -1.16B | -564.19M | -609.53M |
| EBITDA Margin % | 43.25% | 32.18% | 11.93% | 6.89% | -7.28% | -25.69% | -106.14% | -75.98% | -102.37% |
| EBITDA Growth % | 345.41% | 321.11% | 123.06% | 210.56% | 64.99% | 65.84% | -105.57% | 7.44% | - |
| D&A (Non-Cash Add-back) | 27.98M | 26.14M | 31.59M | 33.35M | 22.52M | 14.9M | 13.87M | 12.26M | 13.91M |
| EBIT | 3.07B | 1.66B | 489.17M | 240.56M | -356.97M | -484.85M | -1.16B | -564.21M | -567.49M |
| Net Interest Income | 266.38M | 229.18M | 196.79M | 129.1M | 16.25M | -2.03M | -9.46M | 12.03M | 7.06M |
| Interest Income | 266.38M | 229.18M | 196.79M | 132.57M | 20.31M | 1.61M | 4.68M | 15.09M | 10.5M |
| Interest Expense | 0 | 0 | 0 | 3.47M | 4.06M | 3.64M | 14.14M | 3.06M | 3.44M |
| Other Income/Expense | 437.18M | 243.35M | 178.77M | 117.13M | -199.83M | -77.45M | -5.35M | 9.17M | 52.52M |
| Pretax Income | 3.07B | 1.66B | 489.17M | 237.09M | -361.03M | -488.49M | -1.18B | -567.27M | -570.92M |
| Pretax Margin % | 49.9% | 37.03% | 17.07% | 10.66% | -18.94% | -31.68% | -107.9% | -76.39% | -95.89% |
| Income Tax | 44.04M | 22.72M | 21.25M | 19.72M | 10.07M | 31.89M | -12.64M | 12.38M | 9.1M |
| Effective Tax Rate % | 1.43% | 1.37% | 4.35% | 8.32% | -2.79% | -6.53% | 1.07% | -2.18% | -1.59% |
| Net Income | 3.02B | 1.63B | 462.19M | 209.82M | -373.7M | -520.38M | -1.17B | -579.65M | -580.03M |
| Net Margin % | 49% | 36.31% | 16.13% | 9.43% | -19.61% | -33.75% | -106.75% | -78.06% | -97.42% |
| Net Income Growth % | 295.22% | 251.59% | 120.27% | 156.15% | 28.19% | 55.39% | -101.22% | 0.07% | - |
| Net Income (Continuing) | 3.03B | 1.63B | 467.92M | 217.38M | -371.09M | -520.38M | -1.17B | -579.65M | -580.03M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 110.69M | 100.74M | 91.13M | 85.4M | 77.11M | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 1.17 | 0.63 | 0.19 | 0.09 | -0.18 | -0.27 | -1.20 | -0.82 | -0.89 |
| EPS Growth % | 288.93% | 231.58% | 108.11% | 150.72% | 33.33% | 77.5% | -46.34% | 7.87% | - |
| EPS (Basic) | - | 0.69 | 0.21 | 0.10 | -0.18 | -0.27 | -1.19 | -0.82 | -0.84 |
| Diluted Shares Outstanding | 2.57B | 2.57B | 2.45B | 2.3B | 2.06B | 1.92B | 979.33M | 716.03M | 716.03M |
| Basic Shares Outstanding | 2.4B | 2.37B | 2.25B | 2.15B | 2.06B | 1.92B | 977.72M | 713.88M | 713.88M |
| Dividend Payout Ratio | - | - | - | - | - | - | - | - | - |
Quick answers to the most common questions about buying PLTR stock.
For fiscal year 2025, Palantir Technologies Inc. (PLTR) reported total revenue of $4.48B. This represents a 651.7% increase compared to $595.4M in 2018.
Palantir Technologies Inc. (PLTR) is profitable, generating $1.63B in net income for the fiscal year ending 2025 with a net profit margin of 36.3%.
Palantir Technologies Inc. (PLTR) reported an operating income of $1.41B, resulting in an operating profit margin of 31.6%. This margin reflects the operational efficiency of the business before interest and taxes.
Palantir Technologies Inc. (PLTR) generated $3.69B in gross profit for the year, representing a gross profit margin of 82.4%. This demonstrates the company's core pricing power and production efficiency.
Key Metrics
Top Statement Risk
Valuation premium vs. fundamentals
Metrics are mathematically derived from official filings.
Hypergrowth Fueled by U.S. Commercial
Revenue surged 92.8% YoY in 2026Q2 to $1.9B, with U.S. commercial growth accelerating to 149% YoY, per the latest earnings release, signaling robust AIP-driven adoption.
The sequential acceleration from 84.7% in 2026Q1 to 92.8% in 2026Q2 indicates that the AIP bootcamp strategy is converting into durable commercial demand. The 149% U.S. commercial growth, as reported in the earnings call, suggests that the company's AI sovereignty positioning is resonating with enterprise buyers. However, the sustainability of this pace is uncertain as the base of comparison becomes more difficult, and investors should monitor forward bookings for signs of deceleration.
Gross Margin Expansion Reflects Scalability
Gross margin expanded from 78.9% in 2024Q4 to 84.7% in 2026Q2, as reported in financial statements, indicating strong operating leverage and pricing power in the AI software market.
The 580 basis point improvement in gross margin over six quarters suggests that once the Ontology layer is deployed, incremental revenue carries minimal cost, consistent with a high-fixed-cost, high-scalability model. This expansion outpaces peers like Snowflake (67.2%) and Datadog (80.0%), underscoring Palantir's pricing power. However, the sustainability of this margin depends on the conversion efficiency of the bootcamp model; if the company must increase headcount to manage complex deployments, gross margin could face pressure.
Operating Leverage Drives Margin Inflection
Operating margin jumped from 1.3% in 2024Q4 to 47.1% in 2026Q2, as per SEC filings, as revenue growth outpaced SG&A and R&D expense growth, demonstrating significant operating leverage.
While revenue grew 92.8% YoY in 2026Q2, SG&A grew only 31.4% YoY (from $406.4M to $534.1M), and R&D grew 42.6% YoY (from $135.0M to $192.5M), indicating that the company is scaling efficiently. The operating margin expansion from 26.8% in 2025Q2 to 47.1% in 2026Q2 suggests that the fixed-cost base is being spread over a rapidly growing revenue stream. This leverage is a key driver of the profitability inflection, but investors should monitor whether SG&A efficiency persists as the company expands its forward-deployed engineering force.
Net Income Boosted by Interest Income
Net margin of 54.9% in 2026Q2 exceeds operating margin by 780 basis points, per income statement data, suggesting significant non-operating income, likely from interest on the $1.4B cash pile.
The gap between net and operating margins widened from 6.8 points in 2025Q2 to 7.8 points in 2026Q2, indicating that interest income is becoming a more material contributor to net income. While this enhances reported EPS, it is not core to the software business and may not be sustainable if rates decline. Additionally, stock-based compensation of $265.2M in 2026Q2, though lower as a percentage of revenue (13.9%) than in 2024Q4 (34.0%), still represents a significant non-cash expense that investors should adjust for when assessing true earnings power.
SBC Normalization Improves Cost Structure
Stock-based compensation fell from 34.0% of revenue in 2024Q4 to 13.9% in 2026Q2, as reported in financial statements, indicating a shift toward GAAP profitability and improved expense discipline.
The dramatic reduction in SBC as a percentage of revenue, from $281.8M in 2024Q4 to $265.2M in 2026Q2 despite revenue more than doubling, suggests that management is prioritizing shareholder value and institutional appeal. This normalization, combined with R&D and SG&A growing slower than revenue, has driven the operating margin expansion. However, the absolute SBC remains high, and if the company reverts to heavy equity compensation to attract talent, margins could compress.
2025Q2 Marks Profitability Inflection
Operating income turned positive in 2025Q2 at $269.3M, up from $11.0M in 2024Q4, as per income statement data, marking a decisive shift from near-breakeven to sustained profitability.
The inflection from 1.3% operating margin in 2024Q4 to 26.8% in 2025Q2 was driven by a 48% YoY revenue surge and a 34% reduction in SBC as a percentage of revenue. This transition to GAAP profitability, coupled with S&P 500 inclusion, suggests a maturing business model that can attract institutional capital. The lasting impact is a higher earnings base that supports the premium valuation, but the sustainability of this margin trajectory depends on continued revenue growth and cost discipline.
What Could Invalidate the Base Case
Despite 92.8% revenue growth, the 47.1% operating margin may face compression if SBC reverts or commercial growth decelerates, as reported in financial statements, challenging the premium valuation.
The most significant risk to the income statement narrative is the sustainability of the current margin expansion. While operating margin has expanded dramatically, it is partly due to a temporary reduction in SBC as a percentage of revenue; if the company resumes heavy equity compensation to attract talent, margins could compress. Additionally, the 149% U.S. commercial growth is likely unsustainable as the base of comparison grows, and any deceleration could trigger multiple compression given the elevated valuation. Investors should monitor net dollar retention and bootcamp conversion rates for early signs of demand softening.