Palantir Technologies (PLTR) AI Stock Analysis

• Market Cap: $433.21B
• Dividend Yield: N/A
• Average Volume (3M): 53.32M
• Price to Earnings (P/E): 425.1
• Beta (1Y): 2.37
• Revenue Growth: 47.23%
• EPS Growth: 116.33%
• Country: US
• Employees: 4,001
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.21
• Shares Outstanding: 2,284,334,000
• 10 Day Avg. Volume: 34,046,470
• 30 Day Avg. Volume: 53,317,805
• PEG Ratio: 3.20
• Price to Book (P/B): 34.01
• Price to Sales (P/S): 59.39
• P/FCF Ratio: 149.12
• Enterprise Value/Market Cap: 1.07
• Enterprise Value/Revenue: 118.81
• Enterprise Value/Gross Profit: 147.03
• Enterprise Value/Ebitda: 480.66
• 1Y Price Target: $187.87
• Price Target Upside: 3.36% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 16
• EPS Forecast (FY): 0.72
• Revenue Forecast (FY): $4.40B

• Rating: 73 Outperform
• Price Target: $203.00 ▲(11.69% Upside)

Palantir Technologies' strong financial performance and positive earnings call sentiment are the primary drivers of its overall score. However, the high P/E ratio suggests overvaluation, and technical indicators point to potential short-term weakness. The company's focus on U.S. market growth and AI innovation supports its long-term prospects, but valuation concerns and technical signals warrant caution.

Positive Factors

Revenue Growth

Strong revenue growth in the U.S. market indicates robust demand for Palantir's solutions, enhancing its market position and supporting long-term expansion.

Strategic Partnerships

The partnership with Nvidia to develop an integrated AI technology stack strengthens Palantir's competitive edge in AI and analytics, driving future innovation and market leadership.

Cash Flow Management

Efficient cash flow management supports Palantir's ability to invest in growth opportunities and maintain financial stability, crucial for long-term success.

Negative Factors

International Revenue Decline

Declining international revenue growth may limit Palantir's global market expansion, potentially affecting its long-term growth prospects outside the U.S.

Legal Challenges

Legal disputes over intellectual property can distract management and incur costs, potentially impacting Palantir's operational focus and financial resources.

Strategic Contract Revenue

Reduced revenue from strategic contracts suggests challenges in securing high-value deals, which could impact future revenue streams and strategic growth.

Palantir Technologies Business Overview & Revenue Model

Company Description

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally. The company provides Palantir Gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform. It also offers Palantir Foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place. In addition, it provides Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform (AIP) that provides unified access to open-source, self-hosted, and commercial large language models (LLM) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations' actions and processes into tools for humans and LLM-driven agents. The company was incorporated in 2003 and is headquartered in Denver, Colorado.

How the Company Makes Money

Palantir makes money through a subscription-based revenue model, primarily offering software licenses and related services to government and commercial clients. The company's key revenue streams include long-term contracts with government agencies, which often involve substantial upfront fees and ongoing service revenue, as well as sales of its commercial software platforms to enterprises across various industries. Significant partnerships with organizations such as the U.S. Department of Defense, as well as collaborations with private sector companies, enhance its earnings by providing tailored solutions that address specific client needs. Additionally, Palantir generates revenue from consulting and implementation services that support clients in maximizing the value of their data analytics capabilities.

Palantir Technologies Financial Statement Overview

Summary

Palantir Technologies exhibits strong financial performance across all verticals. The income statement shows impressive revenue and profit growth, the balance sheet is robust with low leverage, and the cash flow statement indicates strong cash generation. The company is well-positioned for future growth with a solid financial foundation and improved profitability.

Income Statement

Palantir Technologies has shown strong revenue growth with a 13.24% increase in TTM, supported by a robust gross profit margin of 80.03%. The net profit margin has improved significantly to 22.18%, indicating enhanced profitability. EBIT and EBITDA margins have also strengthened, reflecting operational efficiency. Overall, the income statement demonstrates a positive growth trajectory and profitability improvement.

Balance Sheet

The balance sheet is solid with a low debt-to-equity ratio of 0.04, indicating minimal leverage and financial risk. Return on equity has improved to 14.64%, showcasing effective use of equity to generate profits. The equity ratio of 81.23% highlights a strong equity base relative to total assets, ensuring financial stability. The balance sheet reflects a healthy financial position with low risk.

Cash Flow

Palantir's cash flow statement shows a positive trend with a 5.04% growth in free cash flow. The operating cash flow to net income ratio of 1.59 indicates strong cash generation relative to net income. The free cash flow to net income ratio is nearly 1, suggesting efficient conversion of income into cash. Overall, the cash flow statement reflects strong cash generation and financial health.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.90B	2.87B	2.23B	1.91B	1.54B	1.09B
Gross Profit	3.15B	2.30B	1.79B	1.50B	1.20B	740.13M
EBITDA	963.04M	341.99M	153.32M	-138.68M	-469.96M	-1.15B
Net Income	1.10B	462.19M	209.82M	-373.70M	-520.38M	-1.17B
Balance Sheet
Total Assets	8.11B	6.34B	4.52B	3.46B	3.25B	2.69B
Cash, Cash Equivalents and Short-Term Investments	6.44B	5.23B	3.67B	2.63B	2.52B	2.01B
Total Debt	235.44M	239.22M	229.39M	249.40M	260.07M	456.86M
Total Liabilities	1.43B	1.25B	961.46M	818.80M	956.42M	1.17B
Stockholders Equity	6.59B	5.00B	3.48B	2.57B	2.29B	1.52B
Cash Flow
Free Cash Flow	1.79B	1.14B	697.07M	183.71M	321.22M	-308.84M
Operating Cash Flow	1.82B	1.15B	712.18M	223.74M	333.85M	-296.61M
Investing Cash Flow	-1.19B	-340.65M	-2.71B	-45.43M	-397.91M	-14.92M
Financing Cash Flow	222.65M	463.36M	218.84M	86.00M	306.75M	1.04B

Palantir Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 181.76
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTR, the sentiment is Positive. The current price of 181.76 is above the 20-day moving average (MA) of 172.07, above the 50-day MA of 179.23, and above the 200-day MA of 142.07, indicating a bullish trend. The MACD of -1.63 indicates Negative momentum. The RSI at 56.67 is Neutral, neither overbought nor oversold. The STOCH value of 96.92 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLTR.

Palantir Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PANW	78 Outperform	$138.59B	126.12	15.33%	―	15.30%	-60.71%
MDB	76 Outperform	$33.34B	―	-3.23%	―	20.93%	68.47%
PLTR	73 Outperform	$433.21B	425.07	19.76%	―	47.23%	116.33%
CRWD	67 Neutral	$129.08B	-405.28	-8.88%	―	22.05%	-341.24%
ORCL	66 Neutral	$620.28B	50.37	71.15%	0.87%	9.67%	11.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
ZS	60 Neutral	$38.70B	―	-2.41%	―	23.24%	-8.83%

Palantir Technologies Corporate Events

Palantir Technologies Reports Strong Q3 2025 Financial Growth

Palantir Technologies reported significant financial growth in Q3 2025, with U.S. commercial revenue increasing by 121% year-over-year and overall revenue growing by 63% year-over-year. The company closed a record-setting $2.76 billion in total contract value, and its financial outlook for Q4 and the full year 2025 remains strong, with raised revenue guidance and expectations of continued profitability.