Palantir Technologies (PLTR)
Information Technology · $407B market cap · SEC CIK 0001321655
ahead of 71% of the S&P 500 · #24 of 73 in Information Technology
Next reports on Feb 1, 2027, after the close, with analysts expecting $0.52 in earnings per share.
52-week range $106.37 to $212.94. 21% below its 52-week high and 59% above its low.
The case for PLTR
- Earns 40% back on shareholder equity.
- Generated $2.1B of free cash flow in FY2025, 47% of revenue.
- 50% of revenue drops through to net profit.
- Earnings per share up 233.7%.
- Revenue up 87% on the year. A jump that size is often a deal or an accounting change, so check the filing.
- Has compounded revenue at 32.6% a year over five years.
The case against
- Expensive for its growth: 110.9× earnings, where 25%+ a year of growth would justify about 46×.
- Priced at 55.8× sales, which leaves no room for a stumble.
- Priced at 40× book value. Very little hard asset backing here.
- Swings harder than the market (beta 1.71).
- Free cash flow is only 0.5% of its market value, a thin cash return for the price.
What the score is made of
Each factor is half a curve over reported figures and half a rank among the other Information Technology companies (momentum is judged against fixed thresholds only), and the five are blended by weight. The score is where that blend places it in the S&P 500. It describes the last filing and the current price. It is not a forecast.
| Valuewhat you pay for the earnings and cash, against the growth you get | 14 |
|---|---|
| Growthhow fast revenue and earnings are moving, this year and over five | 94 |
| Profitabilityhow much of the revenue becomes profit, and how much of that is cash | 93 |
| Momentumhow the price has behaved lately | 46 |
| Stabilityhow violently it moves, what it owes and what it pays you | 49 |
- Each factor except momentum is half fixed thresholds, half rank among the 73 Information Technology companies.
The financials
Revenue growth
Is the business growing? Yes
| Last 12 months | +87.1% |
|---|---|
| Over 5 years | +32.6% a year |
| FY2025 revenue | $4.5B (+56%) |
Free cash flow
Is it generating real cash? Yes, plenty
| FY2025 free cash flow | $2.1B |
|---|---|
| Of revenue | 47% |
| Of profit | 129% |
Profit margins
Is profitability improving? Yes, improving
| Gross margin | 85% |
|---|---|
| Operating margin | 46% |
| Net margin, FY24 → FY25 → now | 16.1% → 36.3% → 50.3% |
Debt vs. cash
Is the balance sheet healthy? Yes, little debt
| Cash | $1.4B |
|---|---|
| Long-term debt | n/a |
| Net cash | n/a |
| Years to repay | n/a |
| Debt / equity | 0.00× |
Valuation
Is the stock price reasonable? No, expensive
| P/E | 110.9× |
|---|---|
| Fair P/E for its growth | 46× |
| P/FCF | 193.6× |
| Forward P/E | 83.7× |
| EV / EBITDA | 120.2× |
At 110.9× earnings it trades well above the 46× that 25%+ a year of growth would justify. At 193.6× free cash flow it trades well above that same mark.
The financials, five years deep
Pulled from Palantir Technologies's XBRL filings on SEC EDGAR. Italic rows are worked out from the others.
| FY2025 | FY2024 | FY2023 | FY2022 | FY2021 | |
|---|---|---|---|---|---|
| Revenue growth | |||||
| Revenue | $4.5B | $2.9B | $2.2B | $1.9B | $1.5B |
| Change on the year | +56% | +29% | +17% | +24% | — |
| Free cash flow | |||||
| Free cash flow | $2.1B | $1.1B | $697M | $184M | $321M |
| Of revenue | 47% | 40% | 31% | 10% | 21% |
| Profit margins | |||||
| Gross margin | 82.4% | 80.2% | 80.6% | 78.6% | 78.0% |
| Operating margin | 31.6% | 10.8% | 5.4% | −8.5% | −26.7% |
| Net margin | 36.3% | 16.1% | 9.4% | −19.6% | −33.7% |
| Debt vs. cash | |||||
| Cash | $1.4B | $2.1B | $831M | $2.6B | $2.3B |
| Long-term debt | — | — | — | — | $0 |
| Net cash (debt) | — | — | — | — | $2.3B |
What Palantir Technologies says it does
Overview We build software that empowers organizations to effectively integrate their data, decisions, and operations at scale. We were founded in 2003 and started building software for the intelligence community in the United States to assist in counterterrorism investigations and operations. We later began working with commercial enterprises, who often faced fundamentally similar challenges in working with data. We have built four principal software platforms, Palantir Gotham (“Gotham”), Palantir Foundry (“Foundry”), Palantir Apollo (“Apollo”), and our Artificial Intelligence Platform (“AIP”). Foundry is our foundational data operations platform, which provides the core capabilities for data management, logic authoring, systemic mapping development through Palantir Ontology (“Ontology”), analytics, and workflow development. AIP is our generative artificial intelligence (“AI”) platform, which provides secure connectivity to…