In a world increasingly driven by data, Palantir Technologies Inc. stands at the forefront, reshaping how organizations harness information to tackle complex challenges. Known for its innovative software platforms, Palantir offers tools like Gotham and Foundry that empower users to uncover hidden insights and streamline operations. As the demand for advanced data solutions grows, I invite you to consider whether Palantir’s robust fundamentals still support its market valuation and promise for future growth.
Table of contents
Company Description
Palantir Technologies Inc. (NASDAQ: PLTR), founded in 2003 and headquartered in Denver, Colorado, specializes in software solutions for data analysis, primarily serving the intelligence community and various commercial sectors. The company offers notable products like Palantir Gotham, which aids in counterterrorism operations, and Palantir Foundry, a platform that optimizes organizational data processes. With a market capitalization of $371B, Palantir is positioned as a leader in the Software – Infrastructure industry. Operating in key markets, including the U.S. and the U.K., it diversifies its offerings across software platforms and services. Palantir’s strategic emphasis on innovation and data integration plays a pivotal role in shaping the future of data-driven decision-making across industries.
Fundamental Analysis
In this section, I will conduct a fundamental analysis of Palantir Technologies Inc., covering its income statement, financial ratios, and dividend payout policy.
Income Statement
The following table provides a detailed overview of Palantir Technologies Inc.’s income statement for the fiscal years 2020 through 2024, highlighting key financial metrics.
| Metric | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Revenue | 1.09B | 1.54B | 1.91B | 2.23B | 2.87B |
| Cost of Revenue | 352.55M | 339.40M | 408.55M | 431.11M | 565.99M |
| Operating Expenses | 1.91B | 1.61B | 1.66B | 1.67B | 1.99B |
| Gross Profit | 740.13M | 1.20B | 1.50B | 1.79B | 2.30B |
| EBITDA | -1.15B | -469.96M | -138.68M | 153.32M | 341.99M |
| EBIT | -1.16B | -484.85M | -161.20M | 119.97M | 310.40M |
| Interest Expense | 14.14M | 3.64M | 4.06M | 3.47M | 0 |
| Net Income | -1.17B | -520.38M | -373.71M | 209.83M | 462.19M |
| EPS | -1.19 | -0.27 | -0.18 | 0.0977 | 0.21 |
| Filing Date | 2021-02-26 | 2022-02-24 | 2023-02-21 | 2024-02-20 | 2025-02-18 |
Interpretation of Income Statement
Over the evaluated period, Palantir Technologies Inc. displayed a consistent upward trend in revenue, growing from 1.09B in 2020 to 2.87B in 2024. This impressive growth reflects successful expansion strategies and market penetration. Notably, net income shifted from significant losses to a positive figure of 462.19M in 2024, indicating improved operational efficiency and profitability. Margins, particularly gross profit and EBITDA, have significantly improved, showcasing effective cost management. The latest year exhibited robust growth, with a remarkable increase in both revenue and net income, suggesting that the company is solidifying its market position and enhancing shareholder value.
Financial Ratios
The following table summarizes the financial ratios for Palantir Technologies Inc. (ticker: PLTR) over recent fiscal years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -1067% | -337.49% | -196.08% | 9.43% | 16.13% |
| ROE | -76.61% | -22.71% | -14.57% | 6.04% | 9.24% |
| ROIC | -54.88% | -16.67% | -5.68% | 2.87% | 5.47% |
| P/E | -19.74 | -67.31 | -35.45 | 175.73 | 368.20 |
| P/B | 15.12 | 15.29 | 5.16 | 10.61 | 34.01 |
| Current Ratio | 3.74 | 4.34 | 5.17 | 5.55 | 5.96 |
| Quick Ratio | 3.74 | 4.34 | 5.17 | 5.55 | 5.96 |
| D/E | 0.30 | 0.11 | 0.10 | 0.07 | 0.04 |
| Debt-to-Assets | 16.98% | 8.01% | 7.21% | 5.07% | 3.77% |
| Interest Coverage | -83.01 | -112.92 | -39.72 | 34.57 | – |
| Asset Turnover | 0.41 | 0.47 | 0.55 | 0.49 | – |
| Fixed Asset Turnover | 4.43 | 6.21 | 7.07 | 9.65 | 11.92 |
| Dividend Yield | 0% | 0% | 0% | 0% | 0% |
Interpretation of Financial Ratios
Palantir Technologies Inc. (PLTR) exhibits a robust financial position based on its recent ratios. The current ratio stands at 5.96, indicating excellent liquidity, while the quick ratio mirrors this strength. The net profit margin of 16.13% reflects solid profitability, though the price-to-earnings ratio of 368.20 signals potential overvaluation. The solvency ratio at 0.40 suggests manageable debt levels, with a debt-to-equity ratio of 0.05 emphasizing low leverage. However, the company’s price-to-book ratio of 34.01 raises concerns about valuation relative to its assets. Overall, while liquidity and profitability are strong, the valuation metrics suggest caution for potential investors.
Evolution of Financial Ratios
Over the past five years, Palantir’s financial ratios have shown significant improvement, transitioning from a negative profitability stance to solid margins. Liquidity ratios have also strengthened, highlighting a consistent upward trend in financial health.
Distribution Policy
Palantir Technologies Inc. (PLTR) does not pay dividends, primarily due to its focus on reinvesting earnings to fuel growth and innovation. The company is in a high-growth phase, prioritizing R&D and strategic acquisitions over shareholder distributions. Despite this, Palantir engages in share buybacks, which can enhance shareholder value by reducing share dilution. Overall, this distribution approach aligns with long-term value creation but entails risks if growth expectations are not met.
Sector Analysis
Palantir Technologies Inc. operates in the Software – Infrastructure industry, specializing in advanced data integration and analysis platforms like Palantir Gotham and Foundry, facing competition from major firms in the tech sector.
Strategic Positioning
Palantir Technologies Inc. (PLTR) holds a significant position in the software infrastructure market, with a market capitalization of approximately $371B. The company focuses on advanced data analytics through its key products, Palantir Gotham and Foundry, which serve various sectors, including government and commercial enterprises. Competitive pressure comes from both traditional software firms and emerging data analytics startups, necessitating continuous innovation. Additionally, the rise of AI technologies poses both opportunities and challenges, as Palantir integrates AI capabilities into its offerings to remain at the forefront of technological disruption.
Revenue by Segment
The chart below illustrates the revenue generated by Palantir Technologies’ Commercial and Government Operating segments over the fiscal years from 2020 to 2024.
Over the analyzed period, both the Commercial and Government segments have shown steady growth, with the Government Operating Segment consistently driving higher revenues. Notably, the Commercial segment increased from 482M in 2020 to 1.3B in 2024, indicating strong market demand. However, the growth rate in 2024 appears to have slowed compared to previous years, raising potential margin risks. The Government Operating Segment also demonstrated resilience, growing to 1.57B in 2024, but a significant concentration risk remains, as revenue heavily relies on government contracts.
Key Products
Palantir Technologies Inc. offers a range of innovative software platforms designed to transform data into actionable intelligence. Below is a table summarizing their key products:
| Product | Description |
|---|---|
| Palantir Gotham | A platform enabling users to identify patterns within complex datasets, facilitating counterterrorism efforts and operational planning. It integrates signals intelligence and confidential reports to help analysts and operators respond to identified threats effectively. |
| Palantir Foundry | This platform creates a central operating system for data, allowing organizations to integrate and analyze data seamlessly. It enhances operational efficiency by enabling individual users to access and work with the data they need from a single location. |
| Palantir Apollo | A software solution that ensures continuous delivery of updates and software across various environments. Apollo allows customers to deploy their software virtually anywhere, ensuring flexibility and responsiveness to operational needs. |
| Palantir Artificial Intelligence Platform (AIP) | A comprehensive platform providing access to large language models (LLM) that can process both structured and unstructured data. AIP empowers organizations to turn their data into actionable insights and tools for both human users and LLM-driven agents, enhancing decision-making capabilities. |
These products reflect Palantir’s commitment to leveraging advanced technology for data analysis and operational efficiency across various sectors.
Main Competitors
No verified competitors were identified from available data. Palantir Technologies Inc. (ticker: PLTR) primarily operates in the software infrastructure sector, focusing on analytical software solutions for the intelligence community. Its estimated market share is significant, positioning it as a leader in its niche, particularly in the U.S. and the U.K. markets.
Competitive Advantages
Palantir Technologies Inc. (PLTR) boasts significant competitive advantages through its advanced software platforms, particularly Palantir Gotham and Foundry, which are essential for data integration and analysis in complex environments. With growing demand for AI-driven solutions, Palantir’s Artificial Intelligence Platform (AIP) positions the company favorably as organizations increasingly seek to leverage large language models for enhanced decision-making. Looking ahead, opportunities for expansion into new markets, such as healthcare and finance, along with the launch of innovative products, could further solidify its market leadership and drive sustained growth.
SWOT Analysis
This analysis aims to evaluate the strengths, weaknesses, opportunities, and threats associated with Palantir Technologies Inc. (PLTR).
Strengths
- Strong market position
- Innovative software solutions
- Diverse clientele
Weaknesses
- High dependency on government contracts
- Limited profitability
- Market volatility
Opportunities
- Expansion into new sectors
- Increasing demand for AI solutions
- Global market growth
Threats
- Intense competition
- Regulatory challenges
- Economic downturns
The overall SWOT assessment indicates that Palantir has a solid foundation with significant opportunities for growth, particularly in the AI sector. However, it must address its weaknesses and be vigilant regarding external threats to maintain a competitive edge and ensure long-term sustainability.
Stock Analysis
Over the past year, Palantir Technologies Inc. (PLTR) has demonstrated significant price movements, culminating in a remarkable bullish trend despite recent fluctuations. The stock’s performance has been characterized by notable highs and lows, indicating a dynamic trading environment.
Trend Analysis
Analyzing the price change over the past two years, PLTR has experienced an impressive increase of 915.33%. This substantial growth categorizes the trend as bullish, although it is worth noting that the acceleration status is currently in deceleration. The stock reached a high of 200.47 and a low of 15.98 during this period, reflecting considerable volatility with a standard deviation of 57.31.
In the recent period from September 14, 2025, to November 30, 2025, the stock has seen a decline of 5.35%. This places it within the neutral trend category, as the percentage change is slightly below -2%. The trend slope is negative at -0.94, indicating a short-term downward movement.
Volume Analysis
Over the last three months, the total trading volume for PLTR has been approximately 39.63B, with buyer-driven activity accounting for 59.33% of the volume, translating to roughly 23.51B in buyer volume. The overall volume trend is increasing, suggesting robust market participation and investor interest.
In the recent period, from September 14, 2025, to November 30, 2025, buyer volume stood at 1.55B against seller volume of 1.59B, resulting in a buyer dominance percentage of 49.35%. This indicates a neutral buyer behavior, suggesting a balanced market sentiment among investors during this timeframe.
Analyst Opinions
Recent analyst recommendations for Palantir Technologies Inc. (PLTR) show a consensus rating of “Buy.” Analysts have highlighted strong return on assets (score: 5) and return on equity (score: 4) as key strengths, indicating the company’s efficient use of capital. However, concerns remain about its price-to-earnings (score: 1) and price-to-book (score: 1) ratios, suggesting potential overvaluation. Noteworthy analysts, including those from major investment firms, emphasize that while the company shows promise, careful consideration of valuation metrics is essential for investors.
Stock Grades
The latest stock ratings for Palantir Technologies Inc. (PLTR) indicate a cautious outlook among analysts.
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Baird | maintain | Neutral | 2025-11-04 |
| Mizuho | maintain | Neutral | 2025-11-04 |
| UBS | maintain | Neutral | 2025-11-04 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-04 |
| B of A Securities | maintain | Buy | 2025-11-04 |
| RBC Capital | maintain | Underperform | 2025-11-04 |
| Piper Sandler | maintain | Overweight | 2025-11-04 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-04 |
| DA Davidson | maintain | Neutral | 2025-11-04 |
| Goldman Sachs | maintain | Neutral | 2025-11-04 |
Overall, the trend shows a significant number of analysts maintaining a Neutral rating, indicating a lack of strong conviction in either direction. However, B of A Securities has maintained a Buy rating, suggesting a more optimistic view compared to others.
Target Prices
The current consensus among analysts for Palantir Technologies Inc. (PLTR) indicates a positive outlook.
| Target High | Target Low | Consensus |
|---|---|---|
| 215 | 160 | 196.09 |
Overall, analysts expect PLTR to perform well, with a target consensus of approximately 196.09, reflecting a robust market sentiment.
Consumer Opinions
Consumer sentiment surrounding Palantir Technologies Inc. (PLTR) reveals a mix of enthusiasm and skepticism, reflecting the company’s innovative approach and some operational challenges.
| Positive Reviews | Negative Reviews |
|---|---|
| “Innovative technology that drives insights.” | “High pricing model makes it inaccessible for smaller businesses.” |
| “Strong data security features.” | “Customer service could be improved significantly.” |
| “Great for large-scale data analysis.” | “Lack of transparency in operations.” |
Overall, consumer feedback indicates that while Palantir is praised for its innovative technology and data security, concerns about pricing and customer support persist.
Risk Analysis
In evaluating Palantir Technologies Inc. (PLTR), it’s crucial to understand the various risks that could impact its performance. The following table summarizes key risks associated with the company.
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Risk | Fluctuations in demand for data analytics services | High | High |
| Regulatory Risk | Potential changes in data privacy regulations | Medium | High |
| Competition Risk | Increasing competition from other tech firms | High | Medium |
| Technology Risk | Reliance on proprietary technology and systems | Medium | Medium |
| Operational Risk | Challenges in scaling operations globally | Medium | Medium |
Given the current market landscape, the most significant risks for PLTR include high market risk due to fluctuating demand and regulatory risks stemming from evolving data privacy laws.
Should You Buy Palantir Technologies Inc.?
Palantir Technologies Inc. has demonstrated a positive net margin of 0.161 and significant growth in revenue, with a 27.56% increase year-over-year. The company maintains low debt levels, with total debt amounting to 239.22M, reflecting a debt-to-equity ratio of 0.06, which is favorable for stability. The overall rating for the company is “B,” indicating a moderately strong position in the market.
Favorable signals The company has a solid net profit margin of 0.161, indicating effective cost management relative to its revenue. Additionally, the low debt-to-equity ratio of 0.06 suggests that Palantir is not heavily leveraged, which can be advantageous in uncertain economic conditions.
Unfavorable signals The return on invested capital (ROIC) is 0.055, which is below the weighted average cost of capital (WACC) of 0.106. This indicates value destruction, as the company is not generating returns that exceed its capital costs. Moreover, the recent seller volume has outpaced buyer volume, suggesting that the stock may be under pressure from selling pressure.
Conclusion Given the combination of a positive net margin alongside a ROIC that falls short of the WACC, it appears prudent to wait for further signs of improvement in the company’s ability to generate returns above its cost of capital. Additionally, with the recent trend showing more sellers than buyers, it might be wise to monitor for a reversal in buying sentiment before making any investment decisions.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Advisors Asset Management Inc. Buys 20,731 Shares of Palantir Technologies Inc. $PLTR – MarketBeat (Nov 25, 2025)
- Palantir: Take Your Medicine (NASDAQ:PLTR) – Seeking Alpha (Nov 25, 2025)
- Palantir’s Deal Frenzy: 26 Partnerships Across 15 Sectors — And No Sign Of Slowing – Benzinga (Nov 24, 2025)
- Palantir Technologies Inc. $PLTR Position Increased by RiverFront Investment Group LLC – MarketBeat (Nov 25, 2025)
- Palantir: The Music Is Slowing Down (PLTR) – Seeking Alpha (Nov 21, 2025)
For more information about Palantir Technologies Inc., please visit the official website: palantir.com
