Palantir Technologies (PLTR) AI Stock Analysis

• Market Cap: $329.70B
• Dividend Yield: N/A
• Average Volume (3M): 82.43M
• Price to Earnings (P/E): 625.0
• Beta (1Y): 2.39
• Revenue Growth: 33.45%
• EPS Growth: 82.50%
• Country: US
• Employees: 4,001
• Sector: Technology
• Sector Strength: 89
• Industry: Software - Infrastructure
• EPS (TTM): 0.13
• Shares Outstanding: 2,262,906,300
• 10 Day Avg. Volume: 75,516,525
• 30 Day Avg. Volume: 82,426,364
• PEG Ratio: 28.75
• Price to Book (P/B): 60.49
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 239.80
• Enterprise Value/Market Cap: 0.96
• Enterprise Value/Revenue: 28.40
• Enterprise Value/Gross Profit: 126.55
• Enterprise Value/Ebitda: 205.57
• 1Y Price Target: $108.27
• Price Target Upside: -24.36% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 17

• Rating: 73 Outperform
• Price Target: $146.00 ▲(2.01%Upside)

Palantir Technologies scores well due to its strong financial performance and positive earnings call outlook, driven by significant U.S. market growth and strategic focus on AI. However, the high P/E ratio indicates potential overvaluation, and challenges in international markets pose risks.

Positive Factors

Government Contracts

Palantir was awarded a $219 million contract extension for its existing Kobayashi Maru contract for space command and control.

Market Expansion

The Middle East was identified as a large opportunity with strong pipelines building in Saudi Arabia, UAE, and Qatar on both Commercial and Government sides.

Product Adoption

Adoption by the U.S. Combatant Commands for the first year has been far greater than expectations.

Negative Factors

Competition

Today's contract announcement could signal increased competition from OpenAI going forward if OpenAI moves into Palantir's ontology territory.

European Market Challenges

European commercial trends are still challenging, with a lack of buyer urgency for AI, making it not a key investment area for Palantir.

Valuation Concerns

Concerns remain on how the stock can grow into its valuation, especially if the magnitude of positive revisions slows or large contracts don't materialize as expected.

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 Technologies makes money primarily through the sale of its software platforms and related services. The company's revenue model is based on long-term contracts with government agencies and commercial enterprises, who use Palantir's platforms for data integration and analytics solutions. Key revenue streams include software subscription fees, professional services, and ongoing support and maintenance. Palantir has significant partnerships with various government sectors, including defense and intelligence agencies, which contribute to a substantial portion of its earnings. The company also generates revenue from commercial clients across industries like healthcare, automotive, and energy, by helping them leverage data to optimize operations and drive business outcomes.

Palantir Technologies Financial Statement Overview

Summary

Palantir Technologies demonstrates strong financial health with impressive revenue growth of 41.6%, excellent gross profit margins at 80.0%, and improved net profit margins. The balance sheet is stable with a low debt-to-equity ratio, though attention to liabilities is advised. Cash flow metrics are robust, supporting continued growth.

Income Statement

Palantir Technologies has demonstrated strong revenue growth with a 41.6% increase from 2023 to TTM (Trailing-Twelve-Months). The gross profit margin is impressive at 80.0% for TTM, indicating efficient cost management. Net profit margin improved significantly to 18.3% in TTM, a positive shift from previous losses. EBIT and EBITDA margins have also strengthened, reflecting enhanced operational efficiency.

Balance Sheet

The balance sheet shows strong equity with an equity ratio of 80.5% in TTM, signifying financial stability. The debt-to-equity ratio remains low at 0.05, reducing financial risk. Return on equity has improved to 10.5% in TTM, showcasing better return on shareholder investment. However, the high total liabilities compared to assets could pose a potential risk.

Cash Flow

The cash flow statement reveals robust free cash flow growth of 15.5% from 2023 to 2024, supporting continued investment and operations. The operating cash flow to net income ratio is 2.34 in TTM, indicating strong cash generation relative to profits. The free cash flow to net income ratio of 2.31 suggests healthy cash flow relative to earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.12B	2.87B	2.23B	1.91B	1.54B	1.09B
Gross Profit	2.49B	2.30B	1.79B	1.50B	1.20B	740.13M
EBITDA	428.72M	341.99M	153.32M	-334.45M	-469.96M	-1.15B
Net Income	570.69M	462.19M	209.82M	-373.70M	-520.38M	-1.17B
Balance Sheet
Total Assets	6.74B	6.34B	4.52B	3.46B	3.25B	2.69B
Cash, Cash Equivalents and Short-Term Investments	5.43B	5.23B	3.67B	2.63B	2.52B	2.01B
Total Debt	244.60M	239.22M	229.39M	249.40M	260.07M	456.86M
Total Liabilities	1.22B	1.25B	961.46M	818.80M	956.42M	1.17B
Stockholders Equity	5.42B	5.00B	3.48B	2.57B	2.29B	1.52B
Cash Flow
Free Cash Flow	1.32B	1.14B	697.07M	183.71M	321.22M	-308.84M
Operating Cash Flow	1.33B	1.15B	712.18M	223.74M	333.85M	-296.61M
Investing Cash Flow	-1.22B	-340.65M	-2.71B	-45.43M	-397.91M	-14.92M
Financing Cash Flow	359.22M	463.36M	218.84M	86.00M	306.75M	1.04B

Palantir Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 143.13
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 143.13 is above the 20-day moving average (MA) of 137.76, above the 50-day MA of 129.06, and above the 200-day MA of 86.92, indicating a bullish trend. The MACD of 3.09 indicates Positive momentum. The RSI at 59.78 is Neutral, neither overbought nor oversold. The STOCH value of 61.63 is Neutral, 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
FTNT	79 Outperform	$82.31B	44.31	205.91%	―	13.83%	58.13%
PANW	78 Outperform	$136.02B	117.92	21.16%	―	13.91%	-50.96%
MDB	78 Outperform	$17.07B	―	-4.00%	―	19.24%	59.66%
ORCL	76 Outperform	$652.38B	53.50	85.36%	0.85%	8.38%	16.96%
CRWD	74 Outperform	$125.98B	721.64	-5.76%	―	25.94%	-226.80%
PLTR	73 Outperform	$329.70B	625.02	12.41%	―	33.45%	82.50%
Sector *	69 Neutral	¥230.46B	14.12	7.50%	2.71%	9.13%	8.48%

Palantir Technologies Corporate Events

Palantir Technologies Confirms Directors and Accounting Firm

On June 5, 2025, Palantir Technologies held its annual meeting of stockholders, where key decisions were made regarding the election of directors and the ratification of its accounting firm. All nominated directors were elected, and Ernst & Young’s appointment as the independent registered public accounting firm for the fiscal year ending December 31, 2025, was ratified, indicating continued stability and governance in the company’s operations.

The most recent analyst rating on (PLTR) stock is a Buy with a $29.00 price target. To see the full list of analyst forecasts on Palantir Technologies stock, see the PLTR Stock Forecast page.

Palantir Technologies Reports Strong Q1 2025 Revenue Growth

On May 5, 2025, Palantir Technologies reported a significant revenue growth of 39% year-over-year for Q1 2025, with U.S. revenue increasing by 55%. The company raised its full-year revenue guidance to a 36% growth, with U.S. commercial revenue expected to grow by 68%, surpassing consensus expectations. This growth is attributed to a shift in software adoption, particularly in the U.S., and highlights Palantir’s strong market positioning and operational success, as evidenced by its Rule of 40 score of 83% and a substantial increase in total contract value.