Palantir Technologies

Palantir’s gross margins are very high (~80% of revenue), typical of a scalable software model. However, operating margins have been modest while it reinvests heavily in R&D and sales. Some pricing power exists because Palantir’s platforms provide mission-critical value, but it is balanced by competition.

Government customers negotiate contracts and may not be willing to absorb large price increases. High usage growth currently drives revenue more than price hikes. Overall, we see moderate pricing power: Palantir can likely raise prices incrementally, but not dramatically, so we score around 60/100.