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PLTR Palantir Technologies Inc. - Fundamental Analysis

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PLTR Stock | Fundamental Analysis & Investment Insights
NASDAQ Technology Software - Infrastructure
Current Price Live
$174.01
Analyst Target
$184.88
+6.2% Upside
52W High
$207.52
52W Low
$58.85

At a glance

Key valuation, profitability, growth, and risk metrics.

Updated Nov 15, 2025
Market cap
$410.28B
P/E
1740.1
ROE
19.5%
Profit margin
28.1%
Debt/Equity
0.04
Dividend yield
N/A

AI Analysis

Powered by advanced machine learning algorithms

Confidence Score
65%
Analysis Accuracy
Palantir Technologies trades at an exceptionally high valuation with a P/E of 1740x and Price/Sales of 105x, significantly above sector averages, which creates substantial downside risk despite robust 62.8% YoY revenue growth and 200% earnings growth. The company exhibits elite profitability with 80.8% gross margins and 33.3% operating margins, outperforming most software peers, while maintaining a fortress balance sheet with minimal leverage (Debt/Equity: 0.04) and strong liquidity (Current Ratio: 6.43). However, the complete lack of earnings estimate beats over the past four quarters, coupled with sustained insider selling totaling $188.66M in the last six months, raises concerns about near-term execution and sentiment. While long-term price momentum remains strong with a 3-year return of +1986.5%, recent underperformance (-3.1% over 1M) and stretched valuations relative to even high-growth peers like AMD and MU suggest limited near-term upside unless growth accelerates materially.

Key Strengths

Exceptional revenue growth at 62.8% YoY, significantly above sector average of 20.77%
Industry-leading profitability with 80.81% gross margin and 33.30% operating margin
Superior return metrics: ROE of 19.50% outpaces CRM (11.20%) and MU (17.20%)
Extremely low leverage with Debt/Equity of just 0.04, well below sector average of 0.74
Strong liquidity profile: Current Ratio of 6.43 and Quick Ratio of 6.31 indicate no near-term financial risk

Key Risks

Extremely elevated valuation: P/E of 1740x and Price/Sales of 105.3x are outliers even among high-growth tech peers
No earnings estimate beats in the last four quarters, signaling potential forecasting or execution issues
Sustained insider selling: $188.66M in director-level sales over the past 6 months, indicating bearish sentiment from insiders
Analyst consensus is only 'hold' despite strong growth, suggesting skepticism about sustainability or valuation
PEG Ratio and ROIC data unavailable, limiting full assessment of growth efficiency and capital allocation
AI Fair Value Estimate
Based on comprehensive analysis
$185.0
+6.3% above current price

Performance Snowflake

Multi-dimensional analysis across 5 key categories

Overall
58
Moderate
Value
30
Future
85
Past
80
Health
95
Dividend
0
AI Verdict
Palantir demonstrates elite growth and profitability that justify a premium valuation, but its current multiples—especially P/E of 1740x and Price/Sales of 105x—are extreme even within the high-growth software sector, where peers like AMD and MU trade at far more reasonable levels. The stock's momentum over 3Y (+1986.5%) and 1Y (+194%) reflects strong investor conviction, yet recent insider selling and lack of earnings surprises suggest caution. While financial health is pristine and growth is robust, the margin of safety is thin, resulting in a neutral overall stance.
Key drivers: 62.8% YoY revenue growth and 200% earnings growth, Extremely high valuation multiples relative to peers, Insider selling pressure and lack of earnings beats
Confidence
70%
Value
30/100

Palantir's valuation multiples are drastically higher than sector averages (Avg P/E: 175.64) and key peers like AMD (134.84), CRM (35.71), and MU (32.27), suggesting the stock is pricing in perfection.

Positives
  • Forward P/E of 370x implies market is pricing in sustained hypergrowth
  • Valuation premium partially justified by superior growth vs sector average of 20.77%
Watchpoints
  • P/E of 1740x is unsustainable without flawless execution
  • Price/Sales of 105.3x is among the highest in software, exceeding even early-stage growth outliers
Future
85/100

Palantir's growth trajectory is among the strongest in the software sector, with revenue growth more than triple the sector average, and recent price momentum (1Y: +194%) confirms strong investor appetite for its AI and government analytics platforms.

Positives
  • 62.8% YoY revenue growth and 231.4% Q/Q earnings growth signal strong demand for Palantir's platforms
  • Operating leverage expanding: margins improving while growth accelerates
Watchpoints
  • Growth may be nearing inflection point where scaling becomes harder
  • No visibility on Q/Q growth trends due to missing data
Past
80/100

Palantir has delivered exceptional historical profitability and long-term share price appreciation (+992.3% over 5Y), but the absence of earnings surprises undermines confidence in near-term execution despite strong headline metrics.

Positives
  • Consistently high profitability: ROE of 19.50%, ROA of 7.65%, and stable margins
  • Five-year return of +992.3% demonstrates long-term value creation
Watchpoints
  • Zero earnings estimate beats in the last four quarters, indicating persistent conservatism or execution gaps
  • Lack of transparency in earnings dates and actuals raises data quality concerns
Health
95/100

Palantir’s financial health is exceptionally strong with near-zero leverage and superior liquidity compared to peers like CSCO (Debt/Equity: 0.63) and CRM (0.19), though incomplete cash flow data limits full transparency.

Positives
  • Debt/Equity ratio of 0.04 indicates minimal financial risk
  • Current and Quick Ratios above 6.3 signal exceptional short-term liquidity
Watchpoints
  • Total Cash and Total Debt data unavailable, limiting full liquidity runway analysis
  • Free Cash Flow and Operating Cash Flow data missing, preventing cash conversion assessment
Dividend
0/100

Palantir does not pay a dividend, which is typical for high-growth software firms reinvesting profits, but this reduces appeal to conservative or income-focused investors.

Positives
  • N/A
Watchpoints
  • No dividend policy in place, limiting appeal to income-oriented investors

Stock Price & Analyst Targets

Real-time price movements and analyst price targets

Current Price
$174.01
Analyst Target
$184.88
Upside/Downside
+6.2%

Multi-Horizon Performance vs Peers

Price momentum across 5Y → 1W horizons for PLTR and closest competitors.

Updated 2025-11-14
Company 5Y 3Y 1Y 6M 1M 1W
PLTR
Palantir Technologies Inc.
Primary
+992.3% +1986.5% +194.0% +34.4% -3.1% -2.2%
MU
Micron Technology, Inc.
Peer
+334.8% +547.4% +254.7% +217.4% +60.9% +5.1%
AMD
Advanced Micro Devices, Inc.
Peer
+134.4% +121.1% +97.1% +22.0% -9.4% +0.5%
CSCO
Cisco Systems, Inc.
Peer
+92.3% +70.3% +28.8% +11.8% -0.5% +1.8%
IBM
International Business Machines Corporation
Peer
+232.3% +136.3% +50.0% +16.0% +9.5% +0.3%

Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.

Historical Performance Trends

Long-term financial metrics and growth patterns

Revenue & Net Income

Profit & Operating Margins

Return on Equity (ROE)

Quarterly Revenue Growth

Historical data shows last 12 quarters (3 years)

Valuation Metrics

Key valuation ratios and pricing indicators

P/E Ratio
1740.1
Forward P/E
370.23
PEG Ratio
N/A
P/B Ratio
62.93
P/S Ratio
105.31
EV/Revenue
104.88
EV/EBITDA
466.59
Market Cap
$410.28B

Profitability

Profit margins and return metrics

Profit Margin 28.11%
Operating Margin 33.3%
Gross Margin 80.81%
ROE 19.5%
ROA 7.65%

Growth

Revenue and earnings growth rates

Revenue Growth +62.8%
Earnings Growth +200.0%
Q/Q Revenue Growth N/A
Q/Q Earnings Growth +231.4%

Financial Health

Balance sheet strength and liquidity metrics

Debt/Equity
0.04
Low debt
Current Ratio
6.43
Strong
Quick Ratio
6.31
Excellent
Cash/Share
$2.7

Quarterly Earnings History

EPS performance vs analyst estimates

2026-02-02
$N/A
2025-11-03
$0.21
+25.5% surprise
2025-08-04
$0.16
+15.6% surprise
2025-05-05
$0.13
+1.1% surprise

Technology Sector Comparison

Comparing PLTR against 149 companies in the Technology sector (10 bullish, 66 neutral, 73 bearish)
P/E Ratio
1740.1
This Stock
vs
90.97
Sector Avg
+1812.9% (Expensive)
Return on Equity (ROE)
19.5%
This Stock
vs
-8.13%
Sector Avg
-339.9% (Below Avg)
Profit Margin
28.11%
This Stock
vs
-7.75%
Sector Avg
-462.5% (Weaker)
Debt to Equity
0.04
This Stock
vs
0.76
Sector Avg
-95.4% (Less Debt)
Revenue Growth
62.8%
This Stock
vs
56.87%
Sector Avg
+10.4% (Growing)
Current Ratio
6.43
This Stock
vs
3.33
Sector Avg
+92.8% (Stronger)

Similar Companies

Peer comparison within the same industry

Company AI Rating Market Cap P/E ROE Profit Margin Price
PLTR
Palantir Technologies Inc.
NEUTRAL $410.28B 1740.1 19.5% 28.1% $174.01
MU
Micron Technology, Inc.
NEUTRAL $408.28B 34.42 22.6% 28.1% $362.75
AMD
Advanced Micro Devices, Inc.
NEUTRAL $315.31B 74.1 7.1% 12.5% $193.39
CSCO
Cisco Systems, Inc.
NEUTRAL $297.08B 29.03 22.4% 17.9% $75.19
IBM
International Business...
NEUTRAL $285.74B 36.48 30.2% 12.1% $305.69

Recent Insider Trading

Insider buy and sell transactions from the last 6 months

Date Insider Position Transaction Shares Value
2025-11-03 MOORE ALEXANDER D Director Sale 20,000 $4,090,887
2025-10-03 STAT LAUREN ELAINA FRIEDMAN Director Sale 800 $149,112
2025-10-01 MOORE ALEXANDER D Director Sale 20,000 $3,680,225
2025-09-18 STAT LAUREN ELAINA FRIEDMAN Director Sale 9,000 $1,598,400
2025-09-11 STAT LAUREN ELAINA FRIEDMAN Director Sale 21,000 $3,484,866
2025-09-05 TAYLOR RYAN DOUGLAS J.D. Officer Sale 36,048 $5,708,057
2025-09-04 SANKAR SHYAM Chief Technology Officer Gift 60,000 -
2025-09-02 GLAZER DAVID ALAN Chief Financial Officer Option Exercise 37,770 $178,274
2025-09-02 GLAZER DAVID ALAN Chief Financial Officer Sale 81,000 $12,511,782
2025-09-02 MOORE ALEXANDER D Director Sale 20,000 $3,128,318
2025-08-29 BUCKLEY JEFFREY JOHANSING Officer Sale 2,803 $440,071
2025-08-22 SANKAR SHYAM Chief Technology Officer Stock Award 200,861 -
2025-08-22 SANKAR SHYAM Chief Technology Officer Sale 200,861 $30,990,248
2025-08-21 COHEN STEPHEN ANDREW President Stock Award 351,884 -
2025-08-21 KARP ALEXANDER C. Chief Executive Officer Stock Award 409,072 -
Insider transactions can signal confidence or concerns about company prospects

Wall Street Analysts

Professional analyst ratings and price targets

Consensus
HOLD
22 analysts
DA Davidson
2025-11-04
main
Neutral Neutral
Morgan Stanley
2025-11-04
main
Equal-Weight Equal-Weight
Goldman Sachs
2025-11-04
main
Neutral Neutral
Baird
2025-11-04
main
Neutral Neutral
RBC Capital
2025-11-04
main
Underperform Underperform
UBS
2025-11-04
main
Neutral Neutral
Cantor Fitzgerald
2025-11-04
main
Neutral Neutral
Piper Sandler
2025-11-04
main
Overweight Overweight
Mizuho
2025-11-04
main
Neutral Neutral
B of A Securities
2025-11-04
main
Buy Buy

Past News Coverage

Recent headlines mentioning PLTR from our newsroom.

Newest → oldest
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