How does Palantir (PLTR) make money?

Palantir (PLTR) generates revenue primarily from Government Operating Segment, which accounted for 53.1% of total revenue in TTM through Q1 2026. The company reported $5.22B in revenue and converted 43.7% of it into net profit, equivalent to roughly $2.28B in net income — what's left after the cost of revenue, operating expenses, interest, and income taxes.

What is the gross profit margin of Palantir (PLTR)?

Palantir (PLTR) reported a gross profit margin of 84.1% in TTM through Q1 2026, equivalent to $4.39B in gross profit on $5.22B in revenue. Gross margin measures how much of each dollar of revenue remains after the direct cost of producing or delivering the product — a higher figure typically signals pricing power, scale, or a less capital-intensive business model.

What is the operating profit margin of Palantir (PLTR)?

Palantir (PLTR) reported an operating profit margin of 38.1% in TTM through Q1 2026, equivalent to $1.99B in operating income. Operating margin captures profitability after research & development, sales & marketing, and general & administrative expenses — but before interest, taxes, and one-off items — and is the cleanest single read on the underlying business's efficiency.

What is the net profit margin of Palantir (PLTR)?

Palantir (PLTR) reported a net profit margin of 43.7% in TTM through Q1 2026, equivalent to $2.28B in net income. Net margin is the bottom-line share of revenue that survives every expense — operating costs, interest, and income taxes — and is the figure that flows directly into earnings per share.

Is Palantir (PLTR) profitable?

Yes. Palantir (PLTR) reported $2.28B in net income for TTM through Q1 2026, with a net profit margin of 43.7%. The company earned more from its operations than it paid out in costs, interest, and income taxes, leaving positive earnings on the bottom line.

How much does Palantir (PLTR) invest in research and development?

Palantir (PLTR) invested $584M in research and development during TTM through Q1 2026, roughly 11.2% of total revenue. R&D spending funds the company's future product pipeline and is expensed in full on the income statement rather than capitalised, which makes the operating margin sensitive to how aggressively management chooses to reinvest in innovation.

How much does Palantir (PLTR) spend on capital expenditures?

Palantir (PLTR) spent $35.1M on capital expenditures (CapEx) during TTM through Q1 2026, roughly 0.7% of total revenue. CapEx represents long-lived investment in property, equipment, data centres, and other physical infrastructure, and is subtracted from operating cash flow to arrive at free cash flow.

How much free cash flow does Palantir (PLTR) generate?

Palantir (PLTR) generated $2.69B in free cash flow during TTM through Q1 2026, a free-cash-flow margin of 51.5%. Free cash flow is the cash left after capital expenditures and represents the discretionary pool the company can use to pay dividends, repurchase shares, repay debt, or fund acquisitions without raising external capital.

What is the effective tax rate of Palantir (PLTR)?

Palantir (PLTR) had an effective tax rate of 1.4% in TTM through Q1 2026. The effective rate is the actual share of pre-tax income paid as income taxes and can differ materially from the statutory rate due to foreign earnings mix, tax credits (such as R&D), share-based compensation deductions, and one-off discrete items.

What are the main business segments of Palantir (PLTR)?

Palantir (PLTR) reports revenue across 2 reportable product segments, led by Government Operating Segment at 53.1% of total revenue in TTM through Q1 2026. See the revenue-by-segment table on this page for the full breakdown and how each segment feeds into the income-statement waterfall above.

Where does Palantir (PLTR) generate most of its revenue?

Geographic Concentration Risk is the largest geographic market for Palantir (PLTR), accounting for 53.9% of revenue in the most recent annual filing. The complete regional split — including international markets and any Rest-of-World rollup — is shown in the revenue-by-geography table on this page.

How Palantir Makes Money: 2026 Visual Revenue Map

Palantir (PLTR) Income Statement Flow — TTM through Q1 2026

Calculated from the four most recent reported quarters, ending March 31, 2026 (reported May 5, 2026).

Palantir (PLTR) Revenue by Product Segment — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported segments changed mid-year.

Revenue contribution by product segment for Palantir (PLTR), TTM through Q1 2026.
Segment	Revenue (USD)	% of total
Government Operating Segment	$2.77B	53.1%
Commercial	$2.45B	46.9%
Total	$5.22B	100%

Government Operating Segment$2.77B
Commercial$2.45B
Total$5.22B

Palantir (PLTR) Revenue by Geography — TTM through Q1 2026

Aggregated from the four quarterly disclosures behind this TTM. Minor differences vs the company's annual filing can occur if reported regions changed mid-year.

Revenue contribution by geographic region for Palantir (PLTR), TTM through Q1 2026
Region	Revenue (USD)	% of total
Geographic Concentration Risk	$6.11B	53.9%
UNITED STATES	$3.97B	35.1%
Rest Of World	$783M	6.9%
UNITED KINGDOM	$468M	4.1%
Total	$11.3B	100%

Geographic Concentration Risk
UNITED STATES
Rest Of World
UNITED KINGDOM
Total

Revenue Breakdown — TTM through Q1 2026

In TTM through Q1 2026, Palantir (PLTR) reports revenue across 2 reportable product segments; the largest segment was Government Operating Segment at 53.1%, followed by Commercial (46.9%). Geographically, Geographic Concentration Risk accounted for 53.9% of revenue, followed by UNITED STATES (35.1%) and Rest Of World (6.9%).

Frequently asked questions

Data & methodology

Palantir (PLTR) Key Financials

Charts, filings, and peer comparison for every metric

Trains Company Knowledge

Explore more

Deep-dives across the income statement, cash flow, capital return, and valuation

Overview

PLTR Overview

Counters

Income Statement

Cash Flow

Capital Return

Buybacks0.02% TTM

How this company returns cash to shareholders — buybacks, dividends, and stock splits.

Forecast & Valuation