Palantir Technologies (PLTR) AI Stock Analysis

• Market Cap: $389.92B
• Dividend Yield: N/A
• Average Volume (3M): 75.70M
• Price to Earnings (P/E): 546.2
• Beta (1Y): 2.44
• Revenue Growth: 38.79%
• EPS Growth: 78.37%
• Country: US
• Employees: 4,001
• Sector: Technology
• Sector Strength: 85
• Industry: Software - Infrastructure
• EPS (TTM): 0.16
• Shares Outstanding: 2,274,261,500
• 10 Day Avg. Volume: 61,725,193
• 30 Day Avg. Volume: 75,703,148
• 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: 0.88
• Enterprise Value/Revenue: 99.90
• Enterprise Value/Gross Profit: 124.82
• Enterprise Value/Ebitda: 574.95
• 1Y Price Target: $154.47
• Price Target Upside: -6.02% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 71 Outperform
• Price Target: $171.00 ▲(4.04% Upside)

Palantir Technologies' overall stock score is driven by its strong financial performance and positive earnings call sentiment, highlighting robust growth and strategic focus on AI solutions. However, the high P/E ratio indicates overvaluation, and technical indicators suggest caution, balancing the overall score.

Positive Factors

Revenue Growth

Palantir's significant revenue growth, particularly in the U.S. market, demonstrates strong demand for its products and services, reinforcing its market position and potential for sustained expansion.

Strategic Partnerships

The partnership with Hadean enhances Palantir's capabilities in defense tech, expanding its product offerings and strengthening its competitive edge in the defense sector.

Cash Flow Management

Strong cash flow management indicates Palantir's ability to efficiently generate and utilize cash, supporting ongoing investments and operational stability.

Negative Factors

International Revenue Decline

The decline in international revenue suggests challenges in expanding outside the U.S., potentially limiting global growth opportunities and diversification.

Limited Strategic Contract Revenue

Limited revenue from strategic contracts indicates potential difficulties in securing high-value deals, which could impact long-term revenue growth and strategic positioning.

Competitive Pressure

Databricks' rapid growth and strong market presence highlight competitive pressures in the data and AI space, potentially challenging Palantir's market share and growth trajectory.

Palantir Technologies Business Overview & Revenue Model

Company Description

Palantir Technologies (PLTR) is a public American software company specializing in big data analytics. Founded in 2003, the company primarily serves government agencies and commercial enterprises across various sectors, including defense, healthcare, finance, and energy. Palantir's core products, Palantir Foundry and Palantir Gotham, enable organizations to integrate, visualize, and analyze vast amounts of data, facilitating informed decision-making and operational efficiency.

How the Company Makes Money

Palantir generates revenue through a subscription-based model, primarily by offering its software platforms, Palantir Foundry and Palantir Gotham, to clients. The company charges clients annually for access to its software and services, which can include data integration, analytics, and support. Significant revenue streams include government contracts, particularly with defense and intelligence agencies, as well as partnerships with large commercial enterprises across various sectors. Palantir's ability to secure long-term contracts and expand its client base, coupled with its focus on high-value data analytics solutions, contributes significantly to its earnings.

Palantir Technologies Financial Statement Overview

Summary

Palantir Technologies exhibits strong financial health with impressive revenue growth, high profitability margins, and efficient cash flow management. The company's low leverage and improved return on equity further strengthen its financial position, making it well-positioned for future growth.

Income Statement

Palantir Technologies has demonstrated strong revenue growth with a 10.45% increase in TTM (Trailing-Twelve-Months). The company maintains a high gross profit margin of 80.03% and a net profit margin of 22.18%, indicating robust profitability. EBIT and EBITDA margins have improved significantly over the years, reflecting enhanced operational efficiency.

Balance Sheet

The company's balance sheet shows a low debt-to-equity ratio of 0.04, suggesting minimal leverage and financial risk. Return on equity has improved to 14.64%, indicating effective use of equity capital. The equity ratio stands at a healthy level, showcasing a strong capital structure.

Cash Flow

Palantir's cash flow performance is strong, with a 29.61% growth in free cash flow. The operating cash flow to net income ratio of 1.59 indicates efficient cash generation relative to net income. The free cash flow to net income ratio is nearly 1, highlighting effective cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.44B	2.87B	2.23B	1.91B	1.54B	1.09B
Gross Profit	2.75B	2.30B	1.79B	1.50B	1.20B	740.13M
EBITDA	597.79M	341.99M	153.32M	-138.68M	-469.96M	-1.15B
Net Income	763.29M	462.19M	209.82M	-373.70M	-520.38M	-1.17B
Balance Sheet
Total Assets	7.37B	6.34B	4.52B	3.46B	3.25B	2.69B
Cash, Cash Equivalents and Short-Term Investments	6.00B	5.23B	3.67B	2.63B	2.52B	2.01B
Total Debt	237.81M	239.22M	229.39M	249.40M	260.07M	456.86M
Total Liabilities	1.34B	1.25B	961.46M	818.80M	956.42M	1.17B
Stockholders Equity	5.93B	5.00B	3.48B	2.57B	2.29B	1.52B
Cash Flow
Free Cash Flow	1.71B	1.14B	697.07M	183.71M	321.22M	-308.84M
Operating Cash Flow	1.73B	1.15B	712.18M	223.74M	333.85M	-296.61M
Investing Cash Flow	-1.69B	-340.65M	-2.71B	-45.43M	-397.91M	-14.92M
Financing Cash Flow	367.64M	463.36M	218.84M	86.00M	306.75M	1.04B

Palantir Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 164.36
• 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 164.36 is above the 20-day moving average (MA) of 160.58, above the 50-day MA of 159.62, and above the 200-day MA of 113.43, indicating a bullish trend. The MACD of 0.68 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 88.88 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	80 Outperform	$132.66B	123.95	17.45%	―	14.87%	-57.43%
MDB	73 Outperform	$27.02B	―	-3.65%	―	21.90%	67.81%
PLTR	71 Outperform	$389.92B	546.23	15.30%	―	38.79%	78.37%
ORCL	71 Outperform	$922.22B	76.01	71.15%	0.62%	9.67%	11.23%
FTNT	67 Neutral	$61.98B	32.28	165.17%	―	14.46%	48.06%
CRWD	67 Neutral	$108.76B	721.64	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$36.69B	12.42	-10.20%	1.85%	8.50%	-7.32%

Palantir Technologies Corporate Events

Palantir Technologies Reports Strong Q2 2025 Financial Results

On August 4, 2025, Palantir Technologies reported its financial results for Q2 2025, showcasing significant growth. The company achieved a 93% year-over-year increase in U.S. commercial revenue and a 48% rise in overall revenue, surpassing market expectations. Palantir’s strong performance is attributed to its AI leverage, with a record-setting total contract value of $2.27 billion and a 43% increase in customer count. The company has raised its revenue guidance for Q3 and FY 2025, indicating continued robust growth and a strong market position.