Palantir Technologies (PLTR) AI Stock Analysis

• Market Cap: $256.81B
• Dividend Yield: N/A
• Average Volume (3M): 108.45M
• Price to Earnings (P/E): 475.4
• Beta (1Y): 2.64
• Revenue Growth: 33.45%
• EPS Growth: 82.50%
• Country: US
• Employees: 3,936
• Sector: Technology
• Sector Strength: 67
• Industry: Software - Infrastructure
• EPS (TTM): 0.13
• Shares Outstanding: 2,262,682,900
• 10 Day Avg. Volume: 104,120,615
• 30 Day Avg. Volume: 108,448,499
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 0.82
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 91.48
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $98.25
• Price Target Upside: -9.75% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 18

Palantir Technologies scores well due to its strong financial performance, highlighted by impressive revenue growth and cash flow generation. The positive sentiment from the earnings call supports its growth potential, particularly in AI and government sectors. However, the high P/E ratio poses a valuation concern, and technical indicators suggest caution due to potential overbought conditions.

Positive Factors

Earnings

Palantir announced earnings beating BofAe Adj. EPS and inline with consensus.

Future Outlook

Management raised its FY25 revenue growth guidance to 36% from the previous 31%, indicating strong future prospects.

Revenue Growth

U.S. commercial market revenue grew 71% year-over-year and 19% quarter-over-quarter.

Negative Factors

International Performance

The international commercial segment showed weakness, declining 5% year-over-year.

Valuation Concerns

Despite growth, the valuation is considered too expensive to underwrite a reasonable return at ~95x CY27 FCF.

Valuation Justification

Despite impressive execution, the valuation is considered very high and difficult to justify at 60 times the estimated revenue, which already includes expected growth acceleration.

Palantir Technologies Business Overview & Revenue Model

Company Description

Palantir Technologies Inc. is a public American software company that specializes in big data analytics. Founded in 2003 and headquartered in Denver, Colorado, Palantir operates primarily in the sectors of government, finance, healthcare, and commercial industries. The company offers a suite of software applications for integrating, visualizing, and analyzing information. Its core products include Palantir Gotham, used primarily by government agencies to counter terrorism, and Palantir Foundry, which is tailored for commercial clients to manage and interpret complex data sets.

How the Company Makes Money

Palantir Technologies generates revenue primarily through the sale of software subscriptions and services. The company employs a subscription-based model for its software platforms, allowing clients to access its suite of data integration, management, and analytical tools. Key revenue streams include government contracts, with significant partnerships involving agencies such as the Department of Defense and the U.S. Intelligence Community. Additionally, Palantir increasingly serves commercial enterprises, offering customized data solutions to large corporations across various industries. The company's revenue is bolstered by its ability to create tailored solutions that embed deeply into client operations, fostering long-term contracts and high client retention rates. Partnerships with large organizations and a focus on expanding into new commercial sectors also contribute significantly to Palantir's financial performance.

Palantir Technologies Financial Statement Overview

Summary

Palantir Technologies demonstrates strong financial health with significant revenue growth, a solid balance sheet, and impressive cash flow generation. The company has shown a notable turnaround in profitability and operational efficiency, supported by robust gross and net profit margins. The low debt-to-equity ratio further underscores its strong financial position.

Income Statement

Palantir Technologies has demonstrated significant revenue growth over the past years, with a notable increase from $742.6 million in 2019 to $2.87 billion in 2024. The gross profit margin is robust at approximately 80.27% for 2024, indicating effective cost management relative to revenue. The net profit margin improved considerably, reaching 16.13% in 2024, showcasing a turnaround from previous years of losses, highlighting improved profitability and operational efficiency.

Balance Sheet

The company's balance sheet reflects a strong equity position with stockholders' equity of $5 billion in 2024, significantly higher than its total debt of $239 million, resulting in a low debt-to-equity ratio. The equity ratio stands at 78.91%, indicating a solid capital structure. However, the return on equity is relatively moderate at 9.24%, suggesting potential areas for improving shareholder returns.

Cash Flow

Palantir's cash flow statement reveals a strong operating cash flow of $1.15 billion in 2024, which supports its positive free cash flow of $1.14 billion. The free cash flow to net income ratio is high, indicating efficient cash generation relative to net earnings. The company has shown consistent improvement in free cash flow growth, which is a positive indicator of financial health and operational efficiency.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.87B	2.23B	1.91B	1.54B	1.09B
	Gross Profit
2.30B	1.79B	1.50B	1.20B	740.13M
	EBIT
310.40M	119.97M	-161.20M	-411.05M	-1.17B
	EBITDA
341.99M	153.32M	-334.45M	-469.96M	-1.15B
	Net Income Common Stockholders
462.19M	209.82M	-373.70M	-520.38M	-1.17B
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.23B	3.67B	2.63B	2.52B	2.01B
	Total Assets
6.34B	4.52B	3.46B	3.25B	2.69B
	Total Debt
239.22M	229.39M	249.40M	260.07M	456.86M
	Net Debt
-1.86B	-601.65M	-2.35B	-2.03B	-1.55B
	Total Liabilities
1.25B	961.46M	818.80M	956.42M	1.17B
	Stockholders Equity
5.00B	3.48B	2.57B	2.29B	1.52B
Cash Flow		Free Cash Flow
1.14B	697.07M	183.71M	321.22M	-308.84M
	Operating Cash Flow
1.15B	712.18M	223.74M	333.85M	-296.61M
	Investing Cash Flow
-340.65M	-2.71B	-45.43M	-397.91M	-14.92M
	Financing Cash Flow
463.36M	218.84M	86.00M	306.75M	1.04B

Palantir Technologies Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 108.86
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• 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 Positive. The current price of 108.86 is above the 20-day moving average (MA) of 102.62, above the 50-day MA of 92.31, and above the 200-day MA of 65.31, indicating a bullish trend. The MACD of 8.03 indicates Negative momentum. The RSI at 55.11 is Neutral, neither overbought nor oversold. The STOCH value of 75.61 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
ORCL	81 Outperform	$414.19B	35.08	108.79%	1.14%	6.23%	12.37%
PLTR	76 Outperform	$256.81B	475.37	12.41%	―	33.45%	82.50%
FTNT	76 Outperform	$82.39B	47.41	338.74%	―	12.27%	54.69%
CRWD	76 Outperform	$109.86B	721.64	-0.69%	―	29.39%	-119.62%
PANW	74 Outperform	$124.93B	106.60	23.38%	―	13.86%	-46.44%
MDB	63 Neutral	$13.98B	―	-6.70%	―	19.22%	28.46%
Sector *	60 Neutral	$10.78B	10.47	-6.71%	2.99%	7.58%	-12.08%

Palantir Technologies Corporate Events

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.

Spark’s Take on PLTR Stock

According to Spark, TipRanks’ AI Analyst, PLTR is a Outperform.

Palantir Technologies scores well due to its strong financial performance, highlighted by impressive revenue growth and cash flow generation. The technical analysis suggests positive momentum but with caution due to potential overbought conditions. The high P/E ratio poses a valuation concern, although strong earnings call sentiment underscores the company’s growth potential, particularly in the AI and government sectors.

To see Spark’s full report on PLTR stock, click here.

Palantir Reappoints Jeffrey Buckley as Chief Accounting Officer

On February 27, 2025, Palantir Technologies announced the reappointment of Jeffrey Buckley as Chief Accounting Officer, effective March 24, 2025. Buckley, who previously served in the same role at Palantir until February 2023, returns to replace David Glazer, who temporarily held the position following Heather Planishek’s resignation. Buckley’s compensation includes a $400,000 annual salary and a restricted stock unit award valued at $3,500,000, reflecting Palantir’s commitment to strengthening its financial leadership.