Palantir TechnologiesLIM:PLTR -1.14%75 Gross Margin % is 86.78% as of Mar. 2026, which is 11% above its 10-year median of 78.28. GuruFocus rates LIM:PLTR with a GF Score™ of 75/100 and a GF Value™ of $136.85 (Modestly Undervalued). The stock has 4 warning signs investors should review. Among 2,685 Software companies, Palantir Technologies ranks better than 91.47% on this metric.
Warren Buffett believes that firms with excellent long term economics tend to have consistently higher margins.
Durable competitive advantage creates a high Gross Margin % because of the freedom to price in excess of cost. Companies can be categorized by their Gross Margin %
1. Greater than 40% = Durable competitive advantage
2. Less than 40% = Competition eroding margins
3. Less than 20% = no sustainable competitive advantage
Consistency of Gross Margin is key
Palantir Technologies had a gross margin of 86.78% for the quarter that ended in Mar. 2026 => Durable competitive advantage
Be Aware
If a company loses its competitive advantages, usually its gross margin declines well before its sales declines. Watching Gross Margin % and Operating Margin % closely helps avoid value trap situations.
Palantir Technologies Gross Margin % Related Terms
Palantir Technologies Gross Margin % Historical Data
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The historical data trend for Palantir Technologies's Gross Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
LIM:PLTR vs PANW, CRWD, ORCL: Gross Margin % Comparison
For the Software - Infrastructure subindustry, Palantir Technologies's Gross Margin %, along with its competitors' market caps and Gross Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Palantir Technologies Gross Margin % vs Software Industry
For the Software industry and Technology sector, Palantir Technologies's Gross Margin % distribution charts can be found below:
* The bar in red indicates where Palantir Technologies's Gross Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
A positive Gross Profit is only the first step for a company to make a net profit. The gross profit needs to be big enough to also cover related labor, equipment, rental, marketing/advertising, research and development and a lot of other costs in selling the products.
Palantir Technologies (LIM:PLTR) has a Gross Margin % of 86.78% as of Mar. 2026. Gross margin is the ratio of total gross profit to net sales. View historical data on Palantir Technologies and its competitors. This is 11% above median its historical median of 78.28. Over the past decade, Palantir Technologies' Gross Margin % has ranged from 67.36 to 84.07. According to the industry distribution chart, Palantir Technologies ranks #229 out of 2685 companies in the Software industry, placing it in the top 8.5%.
Is Palantir Technologies' Gross Margin % too high?
Palantir Technologies' current Gross Margin % of 86.78% is 11% above median its 10-year median of 78.28. Over the past 10 years, this metric has ranged from a low of 67.36 to a high of 84.07. The Software industry median Gross Margin % is 40.45. Palantir Technologies' value of 86.78% is 114.5% above this industry median. Based on the distribution chart, Palantir Technologies ranks #229 out of 2685 companies in the Software industry, which is in the top quartile — a strong position relative to peers. Overall, Palantir Technologies has a GF Score™ of 75/100 and is considered Modestly Undervalued, reflecting its overall financial health beyond just this single metric.
How does Palantir Technologies' Gross Margin % compare to PANW and CRWD?
According to the Software industry distribution chart, Palantir Technologies ranks #229 out of 2685 companies for Gross Margin %. This places Palantir Technologies in the top 9% of its industry — outperforming the majority of peers. The industry median Gross Margin % is 40.45. Palantir Technologies' value of 86.78% is 114.5% above this benchmark. Historically, Palantir Technologies' own Gross Margin % has ranged from 67.36 to 84.07 over the past decade. While the company's 10-year median is 78.28 vs. the industry median of 40.45, Palantir Technologies has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Gross Margin % for a Software company?
The median Gross Margin % among Software companies is 40.45, based on 2,685 companies in the industry. Companies in the top quartile (top 25%) have a Gross Margin % significantly above this median, while those in the bottom quartile fall well below. However, Gross Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Palantir Technologies's current Gross Margin % of 86.78% is 114.5% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Gross Margin % mean?
A high Gross Margin % can signal that a stock is expensive relative to its fundamentals. Gross margin is the ratio of total gross profit to net sales. View historical data on Palantir Technologies and its competitors. For the Software industry, the median Gross Margin % is 40.45 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Palantir Technologies's current Gross Margin % is 86.78%, which is 11% above median its own 10-year median of 78.28. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Palantir Technologies stock overvalued right now?
Based on GuruFocus' analysis, Palantir Technologies (LIM:PLTR) is currently considered Modestly Undervalued. The stock's GF Value™ is $136.85, compared to a current price of $113.00 — trading 17.4% below its estimated fair value. The current Gross Margin % is 86.78%, which is 11% above median its 10-year median of 78.28 and 114.5% above the Software industry median of 40.45. Palantir Technologies' overall GF Score™ is 75/100 with 4 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Gross Margin % calculated?
Gross Margin % is calculated from a company's financial statements. For Palantir Technologies (LIM:PLTR), the current Gross Margin % is 86.78% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Palantir Technologies (LIM:PLTR) Overvalued in 2026?
Based on GuruFocus' analysis, Palantir Technologies stock appears to be undervalued.
The current stock price of $113.00 is trading 17.4% below its estimated GF Value™ of $136.85.
GuruFocus considers Palantir Technologies to be Modestly Undervalued.
Key valuation signals for LIM:PLTR:
Gross Margin %: 86.78% (11% above median its 10-year median of 78.28)
GF Value™: $136.85 vs. price of $113.00 (17.4% below fair value)
Industry Position: 114.5% above the Software median (#229 of 2685)
No single metric tells the full story. See the LIM:PLTR stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
Palantir is an artificial intelligence, analytics, and automated decision-making company that leverages data to drive efficiency across its clients' organizations. The firm serves commercial and government clients via its Foundry and Gotham platforms, respectively. Palantir works only with entities in Western-allied nations and reserves the right not to work with anyone that is antithetical to Western values. The company was founded in 2003 and went public in 2020.
75GF Score
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