One-glance verdict
Overvalued
$41.85 our estimate vs market $174.33
Wall Street consensus: $191.68 (358.0% higher than our fair-value estimate)
317% above our estimate, beyond the bull case
Fundamentals snapshot
Palantir Technologies Inc.
PLTR · NMS · Technology · Software - Infrastructure
Current price
$174.33
52-week range
$106.37 - $207.52
Market cap
$418.93B
Balance sheet
Healthy
407.50x Strong cushion
Net cash $9.20B. Interest coverage shows how many times profit covers the interest bill.
What stands out
3 Rewards
0 Risks
3 rewards · 0 risks
- Reward Revenue grew 37.5% last year.
- Reward Returns 38.1% on equity, ahead of 83% of its peers.
- Reward Free cash flow was positive in 5/10 years.
What this company does
Palantir Technologies Inc.
Palantir builds powerful software that acts as a central brain for huge organizations like governments and large companies, helping them analyze vast amounts of data from many different sources. The company makes most of its money selling subscriptions to these software platforms, which customers use to find patterns and make critical decisions for national security and business operations. This is important because as the world becomes more data-driven, these groups need sophisticated tools to make sense of all their information quickly and effectively.
How the company got here
Palantir was founded in 2003 by a group that included Peter Thiel, a co-founder of PayPal, with the goal of using software to help intelligence agencies analyze massive amounts of data to prevent terrorist attacks. The company's first major backer was In-Q-Tel, the venture capital arm of the CIA, which helped it get its start working with U.S. government agencies. For years, Palantir operated mostly out of the public eye, building a reputation for tackling complex data problems for defense and intelligence organizations. It later expanded its technology to serve commercial businesses and went public in 2020 through a direct listing, which is a way for a company to start trading on the stock market without raising new money.
What it actually does
Palantir is a software company that builds platforms to help organizations make sense of vast and disconnected information. Think of it as an operating system that connects all of an organization's different data sources—like spreadsheets, sensor data, and reports—into one unified picture. This allows users, from soldiers on a battlefield to business executives, to see patterns, run simulations, and make better decisions without Palantir ever owning or controlling their data. The company's software is used in over 50 industries, including defense, healthcare, manufacturing, and finance.
Government
This is Palantir's original and largest business, making up a little more than half of its revenue (the money it brings in from sales). It primarily serves U.S. and allied government agencies in defense, intelligence, and law enforcement. These customers use Palantir's Gotham platform to integrate data from various sources to identify threats, plan missions, and respond to crises. For example, an agency might use it to combine satellite imagery, communications, and on-the-ground reports to get a complete view of a situation.
Commercial
This segment provides software to private companies and is a fast-growing part of Palantir's business, representing just under half of its revenue. The main product here is Palantir Foundry, which acts as a central operating system for a company's data. Businesses in industries like manufacturing, energy, and healthcare use Foundry to manage their supply chains (the entire process of making and selling goods), optimize factory operations, or accelerate scientific research. The goal is to help large companies run more efficiently by connecting their data to their day-to-day operations.
What management is betting on now
Palantir is heavily focused on becoming the go-to platform for artificial intelligence (AI) in large organizations. They are pushing their Artificial Intelligence Platform (AIP), which allows customers to securely use large language models (the technology behind chatbots like ChatGPT) on their own private data to make decisions and automate tasks. A key part of their strategy is the idea of "sovereign AI," which means customers maintain full control over their data and the intelligence their AI systems create. The company is also working to make its software easier and faster to deploy, aiming to attract more commercial customers and reduce its historical reliance on government contracts.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q3
$415.79M
FY2024 Q4
$457.22M
FY2025 Q1
$304.08M
FY2025 Q2
$531.62M
FY2025 Q3
$500.87M
FY2025 Q4
$764.02M
FY2026 Q1
$891.76M
FY2026 Q2
$1.20B
Revenue
$1.94B
Net income
$1.06B
Diluted EPS
0.41
Operating cash flow
$1.22B
Free cash flow
$1.20B
Fetching…
Sources
Revenue
$1.63B
Net income
$870.53M
Diluted EPS
0.34
Operating cash flow
$899.16M
Free cash flow
$891.76M
Fetching…
Sources
Revenue
$1.41B
Net income
$608.68M
Diluted EPS
0.24
Operating cash flow
$777.29M
Free cash flow
$764.02M
Fetching…
Sources
Revenue
$1.18B
Net income
$475.60M
Diluted EPS
0.18
Operating cash flow
$507.66M
Free cash flow
$500.87M
Fetching…
Sources
Revenue
$1.00B
Net income
$326.73M
Diluted EPS
0.13
Operating cash flow
$539.25M
Free cash flow
$531.62M
Fetching…
Sources
Revenue
$883.86M
Net income
$214.03M
Diluted EPS
0.08
Operating cash flow
$310.26M
Free cash flow
$304.08M
Fetching…
Sources
Revenue
$827.52M
Net income
$79.01M
Diluted EPS
0.03
Operating cash flow
$460.33M
Free cash flow
$457.22M
Fetching…
Sources
Revenue
$725.52M
Net income
$143.53M
Diluted EPS
0.06
Operating cash flow
$419.77M
Free cash flow
$415.79M
Fetching…
Sources
Is it cheap or expensive?
Fair value $41.85 vs current price $174.33
Wall Street consensus is the average analyst price target: $191.68 (358.0% higher than our fair-value estimate).
Our most-likely fair value is $41.85 a share — about 76.0% below today's price of $174.33, so the stock currently looks expensive (overvalued).
Is it drowning in debt?
Healthy
Net cash $9.2B - more cash than debt. Interest coverage 407.5x.
Net debt
$-9.20B
Interest coverage
407.50x
Palantir Technologies Inc.'s profit covers its interest bill about 407.5 times over. which is stronger than every peer shown here and 4 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Healthy
Worse cushion
Baseline
Better cushion
PLTR
BASELINE
Palantir Technologies Inc.
Total debt $211.40M Interest coverage 407.50x This is the baseline the peer rows are being compared against.
Total debt $2.76B Interest coverage -172.95x -100% vs PLTR This peer has almost no interest-payment cushion compared with PLTR.
Total debt $1.28B Interest coverage -4.01x -100% vs PLTR This peer has almost no interest-payment cushion compared with PLTR.
Total debt $53.68M Interest coverage -17.14x -100% vs PLTR This peer has almost no interest-payment cushion compared with PLTR.
Total debt $8.45B Interest coverage 79.30x -81% vs PLTR Carries about 5.1x less debt cushion than PLTR.
Total debt $55.01M Interest coverage -43.79x -100% vs PLTR This peer has almost no interest-payment cushion compared with PLTR.
What you should know
The case for and against PLTR
3 Rewards
0 Risks
Rewards
-
Revenue grew 37.5% last year.
-
Returns 38.1% on equity, ahead of 83% of its peers.
-
Free cash flow was positive in 5/10 years.
Risks
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
149.00x
Forward P/E
75.33x
P/B
42.85x
P/S
68.05x
EV/EBITDA
153.92x
PEG ratio
1.76x
Profitability
How much profit each dollar creates
Gross margin
84.8%
Operating margin
47.1%
Net margin
49.0%
ROE
38.1%
ROA
17.3%
Health
Liquidity and balance-sheet strength
Debt / equity
0.02x
Current ratio
7.23x
Quick ratio
7.09x
Total debt
$211.40M
Total cash
$9.41B
Growth
How the business has been compounding
Revenue TTM
$6.16B
Revenue 5Y CAGR
30.5%
EPS TTM
1.17
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$3.40B
Free CF TTM
$2.10B
FCF margin
34.1%
Dividend
Shareholder payout
Yield
—
Payout ratio
0.0%
Last ex-div date
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