In a world increasingly driven by data, Palantir Technologies Inc. stands at the forefront of transforming how organizations harness information. Renowned for its innovative software platforms like Gotham and Foundry, Palantir empowers users to uncover hidden patterns and make data-driven decisions that impact national security and business operations alike. As we delve into the financial landscape of this technology powerhouse, one must consider whether its robust fundamentals continue to justify its current market valuation and growth trajectory.
Table of contents
Company Description
Palantir Technologies Inc. is a leading software company specializing in data integration and analysis, designed primarily for government and commercial sectors. Founded in 2003 and headquartered in Denver, Colorado, Palantir operates globally, with a strong presence in the United States and the United Kingdom. Its core offerings include Palantir Gotham, a platform for counterterrorism operations, and Palantir Foundry, which transforms data management for organizations. Additionally, Palantir Apollo and the Artificial Intelligence Platform enhance software deployment and integration of large language models. With its innovative solutions, Palantir plays a pivotal role in shaping the landscape of data-driven decision-making and operational efficiency across various industries.
Fundamental Analysis
This section will analyze Palantir Technologies Inc.’s income statement, financial ratios, and dividend payout policy to assess its financial health and investment potential.
Income Statement
The following table provides a detailed overview of Palantir Technologies Inc.’s income statement for the fiscal years 2020 to 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 | 431.10M | 566.00M |
| 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 | -1.16B | -138.68M | 153.32M | 342.00M |
| EBIT | -1.16B | -0.41B | -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 | 0.10 | 0.21 |
| Filing Date | 2021-02-26 | 2022-02-24 | 2023-02-21 | 2024-02-20 | 2025-02-18 |
Interpretation of Income Statement
Palantir Technologies Inc. has shown a robust upward trend in revenue, growing from 1.09B in 2020 to 2.87B in 2024. This represents a compound annual growth rate (CAGR) of approximately 60%. Net income has also significantly improved, transitioning from substantial losses in the previous years to a profit of 462.19M in 2024. Margins have stabilized, with gross profit margins improving as operating expenses have grown at a slower rate than revenue. The latest year’s performance reflects an acceleration in growth, suggesting that the company’s strategies are beginning to yield fruitful results, making it an intriguing option for investors looking for growth potential.
Financial Ratios
Here is a summary of the financial ratios for Palantir Technologies Inc. (PLTR) over recent fiscal years.
| Metrics | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Net Margin | -106.75% | -33.75% | -19.61% | 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% | 8.10% | 7.21% | 5.07% | 3.77% |
| Interest Coverage | -83.01 | -112.92 | -39.72 | 34.57 | – |
| Asset Turnover | 0.41 | 0.47 | -0.11 | 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
Analyzing Palantir Technologies Inc. (PLTR) financial ratios for FY 2024 reveals a solid liquidity position with a current ratio of 5.96 and a quick ratio of 5.96, indicating a strong ability to meet short-term obligations. However, the solvency ratio is relatively low at 0.40, which suggests potential concerns regarding long-term financial stability. Profitability ratios are promising, with a net profit margin of 16.13% and a gross profit margin of 80.25%, indicating effective cost management. However, the price-to-earnings (P/E) ratio stands at a high 368.20, suggesting that the stock may be overvalued. Overall, while liquidity and profitability are strong, the high valuation and low solvency ratio warrant caution.
Evolution of Financial Ratios
Over the past five years, Palantir’s financial ratios have shown significant improvement, particularly in profitability and liquidity. The current ratio increased from 3.74 in 2020 to 5.96 in 2024, reflecting a stronger liquidity position, while the net profit margin improved from negative values in earlier years to 16.13% in 2024. This trend suggests a positive trajectory in the company’s financial health.
Distribution Policy
Palantir Technologies (PLTR) currently does not pay dividends, reflecting its strategy to reinvest earnings into growth initiatives and research and development. This approach aligns with its high-growth phase, aiming to enhance long-term shareholder value. Additionally, PLTR engages in share buybacks, which can help support share price appreciation. Overall, this distribution policy appears to be geared towards sustainable value creation for shareholders, given the company’s focus on growth and innovation.
Sector Analysis
Palantir Technologies Inc. operates in the highly competitive software infrastructure sector, offering advanced data integration and analysis tools that provide significant advantages in intelligence and operations.
Strategic Positioning
Palantir Technologies Inc. (PLTR) holds a significant market share in the software infrastructure sector, particularly with its flagship products, Palantir Gotham and Foundry. The company is well-positioned against competitors due to its unique capabilities in data integration and analysis, which are critical for intelligence and operational applications. However, it faces competitive pressure from emerging technologies and new entrants that leverage advancements in artificial intelligence and data analytics. As technological disruption accelerates, Palantir must continuously innovate to maintain its competitive edge and market relevance.
Revenue by Segment
The chart illustrates the revenue distribution between Palantir Technologies’ Commercial and Government Operating segments for fiscal years 2020 to 2024.
Over the past four fiscal years, both segments have shown consistent growth, with the Government Operating Segment leading in total revenue. The Commercial segment increased from 482M in 2020 to 1.3B in 2024, reflecting robust expansion. Notably, the Government Operating Segment also rose from 610M to nearly 1.57B during the same period. However, the growth rate in the most recent year suggests a possible slowdown, indicating potential market saturation or increased competition, which could pose margin risks moving forward.
Key Products
Below is a table summarizing the key products offered by Palantir Technologies Inc., showcasing their unique features and applications.
| Product | Description |
|---|---|
| Palantir Gotham | A software platform designed for the intelligence community, enabling users to uncover hidden patterns in vast datasets, facilitating counterterrorism operations and analysis. |
| Palantir Foundry | A data integration and analytics platform that creates a central operating system for organizations, allowing users to manage and analyze data in a unified environment. |
| Palantir Apollo | A deployment and update management software that ensures seamless software delivery across various environments, enhancing operational efficiency for clients. |
| Palantir AIP | An Artificial Intelligence platform providing access to various language models, allowing organizations to convert structured and unstructured data into LLM-compatible formats. |
These products reflect Palantir’s commitment to leveraging advanced technology to transform data into actionable insights for diverse sectors.
Main Competitors
The competitive landscape for Palantir Technologies Inc. (PLTR) includes several notable companies in the software infrastructure sector, each with significant market capitalizations.
| Company | Market Cap |
|---|---|
| Oracle Corporation | 610.38B |
| ASML Holding N.V. | 426.16B |
| Palantir Technologies Inc. | 415.20B |
| Advanced Micro Devices, Inc. | 353.77B |
| Cisco Systems, Inc. | 308.07B |
| SAP SE | 288.12B |
| Salesforce, Inc. | 249.10B |
| Adobe Inc. | 144.95B |
| Palo Alto Networks, Inc. | 132.98B |
| CrowdStrike Holdings, Inc. | 127.58B |
| UiPath Inc. | 9.94B |
In summary, the main competitors of Palantir span a diverse range of technology companies, primarily focused on software infrastructure, operating mainly in the global market.
Competitive Advantages
Palantir Technologies Inc. (PLTR) boasts significant competitive advantages through its advanced software platforms, Palantir Gotham and Foundry, which uniquely enable organizations to analyze complex datasets and enhance decision-making processes. Looking ahead, the company is poised for growth by expanding into emerging markets and leveraging its Artificial Intelligence Platform (AIP) to enhance data integration and analysis. As global demand for data-driven solutions increases, Palantir’s innovative offerings position it well for future opportunities, making it an attractive option for investors focused on technology-driven growth.
SWOT Analysis
This SWOT analysis evaluates Palantir Technologies Inc. to identify its strengths, weaknesses, opportunities, and threats, guiding strategic decisions.
Strengths
- Strong market position
- Innovative software solutions
- Diverse client base
Weaknesses
- High dependence on government contracts
- Limited dividend history
- Volatile stock price
Opportunities
- Growing demand for data analytics
- Expansion into new markets
- Increased focus on AI technologies
Threats
- Intense competition
- Regulatory challenges
- Economic downturns
The overall SWOT assessment reveals that while Palantir possesses strong technological capabilities and market presence, it must navigate challenges related to its reliance on government contracts and competitive pressures. Strategic focus on diversifying its client base and expanding into new markets could mitigate risks and enhance growth potential.
Stock Analysis
Over the past year, Palantir Technologies Inc. (PLTR) has experienced significant price movements, culminating in a remarkable increase of approximately 984.49%. The stock’s dynamics reflect both strong investor interest and notable volatility.
Trend Analysis
Analyzing the stock over the past two years, the overall price change of 984.49% indicates a bullish trend. However, recent data from September 21, 2025, to December 7, 2025, shows a slight decline of -0.35%, suggesting a neutral trend during this shorter period. The stock has recorded notable highs at 200.47 and lows at 16.35, with the recent trend showing deceleration. The standard deviation of 57.88 indicates considerable volatility over the longer term, while the recent period has a standard deviation of 10.21, reflecting reduced volatility.
Volume Analysis
In the last three months, the total trading volume for PLTR has reached approximately 39.58B, with buyer-driven activity accounting for 59.27% of the total volume at 23.46B. Notably, volume has been increasing, which suggests a growing interest among investors. However, recent trading data reveals a more balanced sentiment, with buyer volume at 1.53B and seller volume at 1.59B, indicating a neutral buyer behavior during the recent period. This balance may reflect cautious optimism among traders as they gauge future price movements.
Analyst Opinions
Recent analyst recommendations for Palantir Technologies Inc. (PLTR) indicate a consensus to hold the stock. Analysts have assigned a rating of B+ based on a solid return on assets (5) and return on equity (4), suggesting the company is financially stable. However, concerns about its price-to-earnings (1) and price-to-book (1) ratios indicate potential overvaluation. Notable analysts have expressed caution, advocating for a wait-and-see approach while monitoring market conditions. Overall, while the fundamentals are strong, the valuation metrics suggest that investors should tread carefully.
Stock Grades
The latest stock ratings for Palantir Technologies Inc. (PLTR) reflect a cautious stance from various reputable grading companies. Here’s an overview of the grades:
| Grading Company | Action | New Grade | Date |
|---|---|---|---|
| Goldman Sachs | maintain | Neutral | 2025-11-04 |
| Morgan Stanley | maintain | Equal Weight | 2025-11-04 |
| B of A Securities | maintain | Buy | 2025-11-04 |
| Piper Sandler | maintain | Overweight | 2025-11-04 |
| UBS | maintain | Neutral | 2025-11-04 |
| Cantor Fitzgerald | maintain | Neutral | 2025-11-04 |
| Baird | maintain | Neutral | 2025-11-04 |
| Mizuho | maintain | Neutral | 2025-11-04 |
| RBC Capital | maintain | Underperform | 2025-11-04 |
| DA Davidson | maintain | Neutral | 2025-11-04 |
Overall, the trend in grades suggests a stable outlook for PLTR, with several firms maintaining their previous ratings. Notably, while some firms like B of A and Piper Sandler remain optimistic with “Buy” and “Overweight” ratings, others show a more cautious approach with multiple “Neutral” ratings.
Target Prices
The consensus target prices for Palantir Technologies Inc. (PLTR) reflect a positive outlook among analysts.
| Target High | Target Low | Consensus |
|---|---|---|
| 215 | 160 | 196.09 |
Overall, analysts expect a moderate appreciation in PLTR’s stock price, with a consensus target suggesting a stable growth potential.
Consumer Opinions
Consumer sentiment towards Palantir Technologies Inc. (PLTR) reveals a mix of enthusiasm for its innovative solutions and concerns regarding its market presence and pricing strategies.
| Positive Reviews | Negative Reviews |
|---|---|
| “Palantir’s data analytics are unmatched!” | “The pricing is too high for smaller companies.” |
| “Fantastic customer support and training!” | “I find the software complex to navigate.” |
| “Great for large enterprises!” | “Limited integration with other tools.” |
| “Innovative technology that drives results.” | “Lack of transparency in operations.” |
Overall, consumer feedback highlights Palantir’s strong data analytics capabilities and supportive customer service as key strengths, while concerns about pricing and software complexity are common weaknesses.
Risk Analysis
Understanding the risks associated with investing in Palantir Technologies Inc. (PLTR) is crucial for making informed decisions. Below is a summary of key risks to consider:
| Category | Description | Probability | Impact |
|---|---|---|---|
| Market Volatility | Fluctuations in the tech sector can affect stock prices significantly. | High | High |
| Regulatory Risks | Increased scrutiny and regulation in data privacy may impact operations. | Medium | High |
| Competition | Growing competition from other data analytics firms could erode market share. | High | Medium |
In my analysis, market volatility and regulatory risks stand out as the most likely and impactful challenges for PLTR, given the dynamic nature of the tech landscape and ongoing legislative changes related to data usage.
Should You Buy Palantir Technologies Inc.?
Palantir Technologies Inc. has demonstrated an improved profitability with a net profit margin of 16.13% for the fiscal year 2024, indicating effective cost management. The company’s return on invested capital (ROIC) stands at 5.47%, which is lower than its weighted average cost of capital (WACC) of 10.77%, suggesting value destruction. With a total debt of 239M and a low debt-to-equity ratio of 0.05, Palantir maintains a conservative capital structure. The company has shown positive fundamentals evolution, reflected in its B+ rating, which indicates a solid growth outlook.
Favorable signals
The analysis shows several favorable elements for Palantir Technologies Inc. Firstly, the company demonstrates strong revenue growth of 28.79% and an impressive gross margin of 80.25%. Additionally, the net margin is positive at 16.13%, with a substantial growth of 71.04%. Furthermore, the company has a favorable interest expense percentage of 0.0%, indicating efficient cost management. The ebit margin stands at 10.83%, and the ebit growth is remarkable at 158.74%. Lastly, the debt-to-equity ratio is favorable at 0.05, suggesting low leverage.
Unfavorable signals
On the downside, there are several unfavorable signals present. The return on equity (ROE) is low at 9.24%, and the return on invested capital (ROIC) is at 5.47%, which is below the weighted average cost of capital (WACC) of 10.77%. This indicates value destruction. Additionally, the price-to-earnings ratio (PE) is high at 368.2, and the price-to-book ratio (PB) is also elevated at 34.01. The current ratio is unfavorable at 5.96, and the asset turnover ratio is low at 0.45, suggesting inefficiencies in asset utilization. The dividend yield is at 0%, which may deter income-focused investors.
Conclusion
In summary, while the income statement shows a favorable outlook, the ratios evaluation indicates significant challenges. Given the unfavorable indicators and the recent seller volume exceeding buyer volume, it might be prudent to wait for buyers to return before making any investment decisions in Palantir Technologies Inc.
Disclaimer: This article is not financial advice. Each investor is responsible for their own investment decisions.
Additional Resources
- Palantir Technologies Inc. (PLTR): A Bull Case Theory – Yahoo Finance (Dec 05, 2025)
- Palantir Q3 Earnings: Rule Of 40 Score Accelerates (NASDAQ:PLTR) – Seeking Alpha (Dec 03, 2025)
- What’s Going On With Palantir Stock Friday? – Palantir Technologies (NASDAQ:PLTR) – Benzinga (Dec 05, 2025)
- Palantir (NASDAQ: PLTR) debuts Chain Reaction with CenterPoint, NVIDIA for US AI buildout – Stock Titan (Dec 04, 2025)
- Palantir Stock Finds Its Footing—and a Path to Global Growth – MarketBeat (Dec 03, 2025)
For more information about Palantir Technologies Inc., please visit the official website: palantir.com
