Palantir Technologies (PLTR) AI Stock Analysis

• Market Cap: $438.01B
• Dividend Yield: N/A
• Average Volume (3M): 50.74M
• Price to Earnings (P/E): 613.6
• Beta (1Y): 2.40
• Revenue Growth: 38.79%
• EPS Growth: 78.37%
• Country: US
• Employees: 4,001
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): 0.16
• Shares Outstanding: 2,274,261,500
• 10 Day Avg. Volume: 40,255,055
• 30 Day Avg. Volume: 50,741,679
• 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: 0.78
• Enterprise Value/Revenue: 99.90
• Enterprise Value/Gross Profit: 124.82
• Enterprise Value/Ebitda: 574.95
• 1Y Price Target: $157.65
• Price Target Upside: -14.61% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 19

• Rating: 76 Outperform
• Price Target: $209.00 ▲(13.20% Upside)

Palantir Technologies' strong financial performance and positive earnings call sentiment are the most significant factors driving its stock score. The company's robust growth in the U.S. market, particularly in AI solutions, and its strategic government contracts contribute positively. However, the high P/E ratio and lack of dividend yield present valuation concerns, and the high beta indicates potential volatility.

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 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 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: 184.63
• 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 184.63 is above the 20-day moving average (MA) of 180.45, above the 50-day MA of 171.76, and above the 200-day MA of 129.30, indicating a bullish trend. The MACD of 2.05 indicates Positive momentum. The RSI at 57.73 is Neutral, neither overbought nor oversold. The STOCH value of 65.65 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
PANW	78 Outperform	$146.96B	135.69	17.45%	―	14.87%	-57.43%
PLTR	76 Outperform	$438.01B	613.59	15.30%	―	38.79%	78.37%
FTNT	76 Outperform	$65.56B	34.15	165.17%	―	14.46%	48.06%
MDB	73 Outperform	$27.14B	―	-3.65%	―	21.90%	67.81%
ORCL	66 Neutral	$807.71B	65.59	71.15%	0.67%	9.67%	11.23%
CRWD	66 Neutral	$132.33B	―	-8.99%	―	23.46%	-270.07%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Palantir Technologies Corporate Events

Palantir’s Earnings Call Highlights Robust Growth

Palantir Technologies Inc. recently held its earnings call, revealing a generally positive sentiment throughout the discussion. The company reported significant revenue growth, particularly in the U.S. commercial and government sectors, alongside strong customer expansions and profitability. However, challenges were noted in international commercial revenue and strategic contract revenue declines, with anticipated seasonal expense increases. Despite these hurdles, the positives significantly outweighed the negatives.

Palantir Technologies Reports Strong Q2 2025 Growth

Palantir Technologies Inc. is a software company specializing in big data analytics, primarily serving the government and commercial sectors with its advanced data integration and analysis platforms.

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.

The most recent analyst rating on (PLTR) stock is a Buy with a $32.00 price target. To see the full list of analyst forecasts on Palantir Technologies stock, see the PLTR Stock Forecast page.