Palantir Technologies Inc.(PLTR) - Stock detail

Palantir Technologies Inc.

US
PLTR
Palantir Technologies Inc.(Listing date: 11/26/2024)

Palantir Technologies Inc. was incorporated in Delaware on May 6, 2003. The company builds and deploys the Palantir Gotham and Palantir Foundry software platforms as the central operating systems for its customers. The company began developing software for U.S. intelligence agencies to assist in counterterrorism investigations and operations. It later started collaborating with commercial enterprises.

AI Value AnalystHold
Overall Rating6.7/10
Generated at:2026-06-11 17:40:53
Analysis based on 5 financial reports from periods: 2026-03-31, 2025-12-31, 2025-09-30, 2025-06-30, and 2025-03-31. Data includes company basic information, financial condition assessment, profitability analysis, and valuation analysis. Last recorded closing price as of 2026-06-11 is $131.08. Data completeness appears comprehensive for fundamental analysis purposes.
Overview

Palantir Technologies Inc. (PLTR) is a leading software infrastructure company with a stellar fundamental story, including explosive revenue growth, rapidly expanding industry-leading margins, a fortress balance sheet, and dominant positioning in a critical sector. However, its operational excellence is fully and aggressively reflected in its stock price through extreme valuation multiples, creating a high-risk investment profile with negligible margin of safety at current levels.

Valuation
2/10
Profitability
9/10
Financial health
9/10
Operation Advice
  • For existing shareholders, maintain positions as the fundamental growth story remains intact.
  • For potential new investors, avoid entry at current price and valuation due to negligible margin of safety and high valuation risk.
  • Consider waiting for a more attractive entry point or for the company to demonstrate sustained growth that justifies current multiples.
  • Future stock performance will depend entirely on the company's ability to meet or exceed lofty growth expectations embedded in its price.

Valuation

P/E TTM
192.21
P/E LYR
783.12
P/B MRQ
42.28
P/S TTM
--
AI Analysis
  • Palantir's valuation metrics are extremely high, reflecting its premium growth profile. The stock is significantly overvalued based on conventional metrics like P/E (192.21 TTM) and P/S (60.15 TTM), but this overvaluation reflects market belief in its unique positioning and sustained hyper-growth. A fundamental target price range of $140-$165 is suggested over the next 6-12 months assuming no degradation in growth trajectory.
  • The trailing twelve-month (TTM) P/E ratio is 192.21 and the forward-looking (dynamic) P/E is 783.12, indicating the market is pricing in continued hyper-growth far into the future.
  • The TTM P/S ratio is 60.15, an extraordinarily high multiple even for a software company, underscoring the premium placed on its revenue growth.
  • The P/B ratio is 42.28, reflecting market valuation far above accounting book value, typical for firms whose primary value is in intangible assets and future earnings potential.
  • The last recorded closing price is $131.08 (as of 2026-06-11) with recent trading showing significant volatility in a 60-day range of approximately $122.68 to $163.70.
  • Given explosive growth in earnings (Q1 2026 Net Income up 306.73% YoY), traditional valuation models are challenging to apply.
  • A reasonable fundamental target price range, based on continuation of current premium valuation on rapidly growing earnings, would be $140 - $165 over the next 6-12 months.
  • Based on conventional valuation metrics (P/E, P/S), PLTR is significantly overvalued.
  • This overvaluation is a direct function of the market's belief in its unique positioning, sustained hyper-growth, and path to becoming one of the dominant enterprise software platforms.
  • The current price near the lower end of its recent volatile range ($131.08) could be seen as a relative pullback within a long-term bullish trend, but it remains at a premium valuation absolute level.
Valuation trend

Profitability

ROE TTM
33.12%
Net margin
53.68%
Gross margin
86.78%
Total revenue
1.63B
AI Analysis
  • Palantir is demonstrating explosive and accelerating profitability with robust revenue growth (84.71% YoY in Q1 2026), dramatic margin expansion (net margin surged to 53.68% from 24.63% in Q1 2025), and exceptionally high returns on capital (ROE-TTM of 33.12% and ROA-TTM of 27.17%).
  • Revenue growth remains robust, with Q1 2026 revenue of $1.63B representing a year-over-year increase of 84.71%, accelerating from the 56.18% growth reported for the full year 2025.
  • Profitability metrics are improving dramatically, with gross margin expanding to 86.78% in Q1 2026.
  • The net margin has surged to 53.68% in Q1 2026, up from 24.63% in Q1 2025, indicating successful scaling and operating leverage.
  • The Return on Equity (ROE-TTM) is 33.12% and Return on Assets (ROA-TTM) is 27.17%.
  • These are exceptionally high figures, signaling that management is generating tremendous profits from the equity invested and assets employed.
Profitability
2025Q12025Q22025Q32025Q42026Q1
ROE TTM--9.89%17.53%26.23%33.12%
Earnings
2025Q12025Q22025Q32025Q42026Q1
Total revenue883.86M1.89B3.07B4.48B1.63B

Financial health

Debt/Asset
16.11%
Current ratio
6.91
Quick ratio
--
Cash ratio
6.91
AI Analysis
  • Palantir's financial health is exceptionally strong with massive short-term liquidity (current ratio of 6.91), minimal debt reliance (debt-to-asset ratio of 16.11%), and strong cash flow generation from high and growing net margins.
  • The current ratio of 6.91 indicates massive short-term liquidity, far exceeding the typical healthy benchmark of 2, suggesting the company has more than sufficient resources to cover its short-term obligations.
  • The debt-to-asset ratio is a remarkably low 16.11%, indicating a very conservative capital structure with minimal reliance on debt financing.
  • This conservative capital structure provides significant financial flexibility and reduces risk during economic downturns.
  • The company's high and growing net margins (reaching 53.68% in Q1 2026) translate directly into strong cash flow generation, further solidifying its financial stability.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset18.08%18.19%17.57%15.87%16.11%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio6.496.326.437.116.91