Palantir Technologies (PLTR) AI Stock Analysis

• Market Cap: $322.82B
• Dividend Yield: N/A
• Average Volume (3M): 49.36M
• Price to Earnings (P/E): 213.2
• Beta (1Y): 2.35
• Revenue Growth: 47.23%
• EPS Growth: 116.33%
• Country: US
• Employees: 4,001
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.25
• Shares Outstanding: 2,284,334,000
• 10 Day Avg. Volume: 49,443,677
• 30 Day Avg. Volume: 49,355,660
• PEG Ratio: 1.13
• Price to Book (P/B): 57.02
• Price to Sales (P/S): 94.11
• P/FCF Ratio: 200.51
• Enterprise Value/Market Cap: 0.95
• Enterprise Value/Revenue: 68.80
• Enterprise Value/Gross Profit: 83.53
• Enterprise Value/Ebitda: 213.81
• 1Y Price Target: $191.25
• Price Target Upside: 41.42% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 19
• EPS Forecast (FY): 1.27
• Revenue Forecast (FY): $7.14B

• Rating: 70 Outperform
• Price Target: $153.00 ▲(13.13% Upside)
• Action: Reiterated Date: 02/05/26
• Date: Action: Reiterated 02/05/26

PLTR scores well on fundamentals and earnings-call outlook, supported by very strong margins, cash generation, and low leverage alongside aggressive 2026 guidance. The score is held back by weak technical momentum (below major moving averages with negative MACD) and an extremely high P/E that increases downside sensitivity if growth or execution cools, particularly given US concentration and slower international adoption.

Positive Factors

Exceptional profitability and margins

Sustained, very high gross and operating margins indicate durable operating leverage from software economics and efficient delivery. High margins support reinvestment in product and sales, absorb incremental sales costs, and provide a long-term cushion versus competitive or cyclical pressures.

Strong free cash flow generation

Near-parity of free cash flow with earnings and multi-year improvement implies high cash conversion. That durable cash generation reduces financing risk, funds strategic R&D and go-to-market investments, and gives optionality for M&A or capital returns.

High retention and large contract bookings

Very high net dollar retention plus record contract value and accelerating customer additions reflect stickiness and successful expansion motions. This structurally boosts predictable recurring revenue and supports scalable unit economics over the medium term.

Negative Factors

Heavy US revenue concentration

Reliance on the US market concentrates political, procurement and macro risk. A disproportionate share of growth tied to one geography limits diversification benefits and makes the company's medium-term growth durability vulnerable to policy, budget, or competitive shifts in that market.

Slower international commercial adoption

Sluggish uptake outside the US indicates structural go-to-market and adoption barriers abroad. Persistent slow international traction constrains the total addressable market expansion and makes sustaining high company-wide growth rates more dependent on US execution.

Dependence on large customer expansions

Growth concentrated in outsized expansions raises revenue concentration risk; if a few large customers pause renewals or expansion, top-line could swing materially. A less balanced revenue mix increases sensitivity to account-level events over the medium term.

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

Strong financial inflection with very high margins (gross ~82%, 2025 EBIT ~31.6%, net ~36.3%), robust free cash flow closely matching earnings (~98% of net income), and a conservatively financed balance sheet with very low leverage (debt-to-equity ~0.03). Key risk is uneven revenue growth (notably the 2024 slowdown) and concentration of returns around a rapid ramp.

Income Statement

Revenue growth remains healthy with a clear acceleration in 2025 (14.9% vs. essentially flat in 2024 and mid-teens in 2023). Profitability has improved dramatically: the company moved from sizable losses in 2020–2022 to strong positive earnings in 2023–2025, culminating in very high 2025 operating and net margins (EBIT margin ~31.6%, net margin ~36.3%) alongside an already-strong gross margin (~82%). The main weakness is growth volatility (sharp slowdown in 2024 before re-acceleration), which raises some uncertainty around the durability of top-line momentum.

Balance Sheet

The balance sheet looks very conservatively financed, with low debt levels and improving leverage over time (debt-to-equity ~0.03 in 2025, down from ~0.30 in 2020). Equity has grown significantly (to ~$7.39B in 2025), supporting a larger asset base (~$8.90B). Returns on equity have swung from negative in earlier loss years to strong positive levels (about 22% in 2025), reflecting the profitability inflection. A remaining watch item is that returns are coming off a rapid earnings ramp, so sustaining these elevated returns will matter as the company scales.

Cash Flow

Cash generation is a major strength: operating cash flow and free cash flow are both very large and closely track earnings quality (free cash flow is ~98% of net income in 2025). Free cash flow growth is positive and improved in 2025 (~17%), and cash conversion has strengthened materially versus 2020–2022 when operating cash flow was weaker (including negative in 2020). The key weakness is historical volatility—cash flow performance was uneven earlier in the period—though the last three years show a much more consistent profile.

Breakdown	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	4.48B	2.87B	2.23B	1.91B	1.54B
Gross Profit	3.69B	2.30B	1.79B	1.50B	1.20B
EBITDA	1.44B	341.99M	153.32M	-138.68M	-469.96M
Net Income	1.63B	462.19M	209.82M	-373.70M	-520.38M
Balance Sheet
Total Assets	8.90B	6.34B	4.52B	3.46B	3.25B
Cash, Cash Equivalents and Short-Term Investments	7.18B	5.23B	3.67B	2.63B	2.52B
Total Debt	412.81M	239.22M	229.39M	249.40M	260.07M
Total Liabilities	1.41B	1.25B	961.46M	818.80M	956.42M
Stockholders Equity	7.39B	5.00B	3.48B	2.57B	2.29B
Cash Flow
Free Cash Flow	2.10B	1.14B	697.07M	183.71M	321.22M
Operating Cash Flow	2.13B	1.15B	712.18M	223.74M	333.85M
Investing Cash Flow	-2.78B	-340.65M	-2.71B	-45.43M	-397.91M
Financing Cash Flow	-26.91M	463.36M	218.84M	86.00M	306.75M

Palantir Technologies Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 135.24
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLTR, the sentiment is Negative. The current price of 135.24 is below the 20-day moving average (MA) of 144.34, below the 50-day MA of 166.22, and below the 200-day MA of 161.04, indicating a bearish trend. The MACD of -9.72 indicates Negative momentum. The RSI at 37.53 is Neutral, neither overbought nor oversold. The STOCH value of 45.51 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PLTR.

Palantir Technologies Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
MDB	75 Outperform	$29.55B	-403.50	-3.23%	―	20.93%	68.47%
PANW	72 Outperform	$124.32B	83.55	16.26%	―	15.30%	-60.71%
PLTR	70 Outperform	$322.82B	213.16	26.23%	―	47.23%	116.33%
ORCL	65 Neutral	$448.85B	29.35	70.60%	1.00%	11.08%	29.56%
ZS	62 Neutral	$27.45B	-644.02	-2.41%	―	23.24%	-8.83%
CRWD	62 Neutral	$104.81B	―	-8.88%	―	22.05%	-341.24%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Palantir Technologies Corporate Events

Palantir Reports Surging Q4 Growth and Profitability Acceleration

On February 2, 2026, Palantir reported fourth-quarter and full-year 2025 results showing a sharp acceleration in growth and profitability, underpinned by surging demand in its U.S. commercial business. In Q4 2025, total revenue rose 70% year-on-year to $1.41 billion, with U.S. revenue up 93% and U.S. commercial revenue jumping 137%, while U.S. government revenue grew 66%; the company closed a record $4.26 billion in total contract value, expanded its customer base by 34% from a year earlier, and generated robust margins with GAAP operating income at a 41% margin, GAAP net income at a 43% margin, and adjusted free cash flow at a 56% margin. For the full year 2025, revenue climbed 56% to $4.48 billion, U.S. commercial revenue more than doubled, and GAAP net income reached $1.63 billion with strong cash generation, reinforcing management’s emphasis on leveraging advances in AI to drive operational efficiency and scale, and positioning the company as a high-growth, highly profitable player in enterprise AI and data analytics.

The most recent analyst rating on (PLTR) stock is a Buy with a $162.00 price target. To see the full list of analyst forecasts on Palantir Technologies stock, see the PLTR Stock Forecast page.