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 Rating7.3/10
Generated at:2026-06-03 17:40:06
Analysis based on 5 financial reports covering periods from 2025-03-31 to 2026-03-31. Stock price data as of 2026-06-03 closing price of $142.20, with 60-day trading range referenced. All financial metrics derived from the provided quarterly reports.
Overview

Palantir Technologies Inc. (PLTR) is a software infrastructure company with exceptionally strong business fundamentals, including explosive growth, soaring profitability, and a rock-solid balance sheet. The company operates in a high-growth, mission-critical sector and is executing superbly. However, the stock's valuation is extremely high, reflecting a premium pricing for its growth profile, which limits near-term upside potential and suggests significant volatility.

Valuation
4/10
Profitability
9/10
Financial health
9/10
Operation Advice
  • Hold existing positions to benefit from continued execution.
  • For new investors, consider waiting for a more attractive entry point closer to the $130-$135 range to provide a better margin of safety, as the current price offers a balanced risk/reward profile with little margin for error if growth decelerates.

Valuation

P/E TTM
192.21
P/E LYR
783.12
P/B MRQ
42.28
P/S TTM
--
AI Analysis
  • Valuation metrics are extremely high, with a forward P/E of 783.12 and trailing P/E of 192.21, reflecting a market premium for Palantir's growth. The stock appears fairly valued to slightly undervalued relative to its recent trading range and growth momentum, but remains stratospherically valued on absolute metrics.
  • The forward P/E of 783.12 and trailing P/E of 192.21 are astronomically high, indicating the market is pricing in many years of future growth.
  • A PS-TTM of 65.25 is exceptionally high, signaling investors are willing to pay a significant premium for each dollar of current revenue.
  • A PB ratio of 42.28 reflects the market's valuation far exceeding the company's book value, typical for high-growth software firms.
  • The stock closed at $142.20, with a recent 60-day trading range from $122.68 to $163.70.
  • Given the extreme valuation multiples, traditional discounted cash flow models are challenging to apply meaningfully.
  • A reasonable lower bound is ~$130-$135, supported by recent consolidation levels.
  • A fundamental target range is ~$150-$165, justified by sustained execution on its hyper-growth trajectory.
  • An upper bound of ~$175+ would require acceleration in growth rates beyond current forecasts.
  • Based on the current price of $142.20, the stock appears fairly valued to slightly undervalued relative to its recent trading range and fundamental growth momentum, though it remains stratospherically valued on absolute metrics.
Valuation trend

Profitability

ROE TTM
33.12%
Net margin
53.68%
Gross margin
86.78%
Total revenue
1.63B
AI Analysis
  • Profitability metrics demonstrate a powerful and accelerating trend, with exceptionally high and expanding margins, explosive earnings growth, and sustained high revenue growth above 39% for the last five quarters.
  • Both gross margin (86.78% in Q1 2026) and net margin (53.68% in Q1 2026) are exceptionally high and have been expanding sequentially.
  • Diluted EPS grew from $0.08 in Q1 2025 to $0.34 in Q1 2026, a 325% increase.
  • The annual EPS for 2025 was $0.63.
  • The company has consistently delivered revenue growth above 39% for the last five reported quarters.
  • The most recent quarter accelerated to nearly 85% year-over-year revenue growth.
  • This combination of high growth, expanding margins, and asset-light efficiency is rare.
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 robust, with strong liquidity, a conservative capital structure, high profitability and growth, and exceptional efficiency in using shareholder capital and assets.
  • A current ratio of 6.91 indicates exceptional short-term financial stability.
  • An extremely low debt-to-equity ratio, implied by a 16.11% liability-to-asset ratio, suggests a very conservative balance sheet.
  • The company has transitioned to strong profitability.
  • Recent quarterly reports show explosive growth in Net Income Attributable to Shareholders, with a 306.73% year-over-year increase in Q1 2026.
  • Revenue growth is exceptionally high at 84.71% YoY for Q1 2026.
  • The trailing twelve-month Return on Equity (ROE) of 33.12% indicates highly efficient use of shareholder capital.
  • The trailing twelve-month Return on Assets (ROA) of 27.17% indicates highly efficient use of company assets to generate profits.
Leverage
2025Q12025Q22025Q32025Q42026Q1
Debt/Asset18.08%18.19%17.57%15.87%16.11%
Liquidity
2025Q12025Q22025Q32025Q42026Q1
Current ratio6.496.326.437.116.91