Download PDF

1. Company Snapshot

1.a. Company Description

Palantir Technologies Inc.builds and deploys software platforms for the intelligence community in the United States to assist in counterterrorism investigations and operations.The company provides palantir gotham, a software platform which enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants, as well as facilitates the handoff between analysts and operational users, helping operators plan and execute real-world responses to threats that have been identified within the platform.


It also offers palantir foundry, a platform that transforms the ways organizations operate by creating a central operating system for their data; and allows individual users to integrate and analyze the data they need in one place.In addition, it provides apollo, a software that enables customers to deploy their own software virtually in any environment.Palantir Technologies Inc.


was incorporated in 2003 and is based in Denver, Colorado.

Show Full description

1.b. Last Insights on PLTR

Palantir Technologies Inc.'s recent performance was driven by its robust Q3 results, with revenue surging 63% year-over-year and U.S. commercial revenue up 121%. The company's strong growth was fueled by generative AI and a unique customer-focused deployment model. Management raised guidance for Q4 and FY 2025, citing continued momentum in AI adoption and robust free cash flow generation. A new partnership with NVIDIA also supports PLTR's AI-driven decision intelligence systems. Despite a high valuation, PLTR's dominant position in cloud-native analytics and expanding customer base underpin its growth story.

1.c. Company Highlights

2. Palantir's Q3 2025 Earnings: A Monumental Quarter

Palantir's financial performance in Q3 2025 was nothing short of extraordinary, with revenue growth of 63% year-over-year and 18% sequentially, reaching new heights. The U.S. commercial business was the driving force, growing 77% year-over-year and 20% sequentially, accounting for three-fourths of the total business. The company's adjusted operating margin was 51%, and adjusted free cash flow was $540 million, representing a 46% margin. Earnings per share (EPS) came in at $0.21, beating estimates of $0.1679. The company's financial metrics are a testament to its strong execution and market demand for its AI platform, AIP.

Publication Date: Nov -05

📋 Highlights
  • Revenue Growth:: Achieved 63% year-over-year growth and 18% sequential growth, with $1.329B guidance for Q4 2025 (13% QoQ growth).
  • U.S. Commercial Dominance:: Accounted for 75% of total business, growing 77% YoY and 20% sequentially, with $1.3B in Q3 TCV bookings (6x YoY growth).
  • TCV Bookings Record:: Closed $2.8B in total contract value, a 151% YoY increase, with 204 deals exceeding $1M in value.
  • Rule of 40 Leader:: Scored 114% (20 points above prior record), balancing 63% revenue growth and 51% adjusted operating margin.
  • Free Cash Flow Strength:: Generated $540M adjusted free cash flow (46% margin), alongside $6.4B in cash/cash equivalents and $880M remaining in share repurchase authorization.

Operational Highlights

The operational highlights of the quarter were just as impressive, with total contract value (TCV) bookings reaching $2.8 billion, up 151% year-over-year. The company closed 204 deals worth $1 million or more, with the U.S. commercial business accounting for $1.3 billion in TCV. Palantir's net dollar retention was 134%, an increase of 600 basis points from the previous quarter. The company's focus on delivering tangible results with customers is driving growth, with a network effect in the pipeline.

Growth Prospects and Valuation

Analysts estimate Palantir's revenue growth to be 38.5% next year. With a current P/S Ratio of 111.34, the market is pricing in high growth expectations. The company's ROE is 19.09%, and ROIC is 11.98%, indicating strong profitability. The EV/EBITDA ratio is 497.13, suggesting that the company's valuation is largely dependent on its ability to continue delivering strong earnings growth. As Alexander Karp noted, "we're making our clients more money or more dominant on the battlefield, and they're paying us a subset of that," highlighting the company's unique value proposition.

Guidance and Future Outlook

Palantir guided to revenue of $1.329 billion in Q4 2025, representing 13% growth quarter-over-quarter and 61% growth year-over-year. For the full year 2025, the company is raising its revenue guidance to $4.396 billion to $4.400 billion, with U.S. commercial revenue guidance exceeding $1.433 billion and a growth rate of at least 104%. The company's focus on maintaining its unique attributes and delivering tangible results with customers is expected to drive continued growth and success. With its strong financial performance and growth prospects, Palantir is well-positioned to continue delivering value to its investors.

3. NewsRoom

Card image cap

Northslope Signs Large-Scale Expansion for Deployment of Palantir AI FDE and Demonstrates Accelerated Growth; Palantir Recognizes Northslope as the First Partner of the Vanguard: Elite

Dec -04

Source: businesswire.com

Card image cap

Prediction: In 5 Years, Many Artificial Intelligence (AI) Investors Will Regret Not Doing This

Dec -04

Source: fool.com

Card image cap

What Should Palantir Investors Worry About?

Dec -04

Source: forbes.com

Card image cap

Here's Why You Might Not Want to Buy Into Michael Burry's Bet Against Palantir

Dec -04

Source: fool.com

Card image cap

Palantir Stock Rises -- Teams Up with Nvidia to Accelerate AI Infrastructure

Dec -04

Source: gurufocus.com

Card image cap

Live Nasdaq Composite: Markets Hunt Direction as Meta Captures Spotlight

Dec -04

Source: 247wallst.com

Card image cap

Top Big Data Stocks Set to Accelerate the AI-Powered Future

Dec -04

Source: zacks.com

Card image cap

Cathie Wood Cuts Palantir Again. Dumps $57 Million Stake

Dec -04

Source: gurufocus.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (22.35%)

6. Segments

Government

Expected Growth: 20.0%

Government agencies' increasing reliance on data-driven insights to enhance national security, defense, drives growth for Palantir's data integration and analytics platforms.

Commercial

Expected Growth: 25.2%

Palantir's Commercial segment is poised for growth, fueled by increasing adoption of data-driven solutions across industries, such as healthcare, finance, and retail, driving demand for its software and data integration capabilities.

7. Detailed Products

Gotham

A data integration platform that enables users to integrate, manage, and analyze large datasets from various sources.

Foundry

A platform that enables users to integrate, manage, and analyze large datasets from various sources, with a focus on scalability and security.

Apollo

A platform that enables users to deploy, manage, and scale AI and machine learning models in a secure and governed environment.

Metropolis

A data analytics platform that enables users to analyze and visualize large datasets to identify patterns and trends.

8. Palantir Technologies Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Palantir's software is highly specialized and customized to meet the needs of its clients, making it difficult for substitutes to emerge.

Bargaining Power Of Customers

While Palantir's customers are large and influential, the company's software is often critical to their operations, giving Palantir some bargaining power.

Bargaining Power Of Suppliers

Palantir's suppliers are primarily small technology companies and individual contractors, giving the company significant bargaining power.

Threat Of New Entrants

The data analytics and artificial intelligence markets are highly competitive, and new entrants with innovative technologies could potentially disrupt Palantir's business.

Intensity Of Rivalry

The data analytics and artificial intelligence markets are highly competitive, with many established players and new entrants vying for market share.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 6.19%
Debt Cost 3.95%
Equity Weight 93.81%
Equity Cost 17.67%
WACC 16.82%
Leverage 6.60%

11. Quality Control: Palantir Technologies Inc. passed 8 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Oracle

A-Score: 4.9/10

Value: 2.2

Growth: 6.8

Quality: 6.0

Yield: 2.0

Momentum: 9.0

Volatility: 3.3

1-Year Total Return ->

View Full Report
Stock-Card
Zscaler

A-Score: 4.9/10

Value: 2.0

Growth: 8.4

Quality: 4.6

Yield: 0.0

Momentum: 9.0

Volatility: 5.3

1-Year Total Return ->

View Full Report
Stock-Card
Palantir

A-Score: 4.8/10

Value: 0.0

Growth: 7.6

Quality: 8.5

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

View Full Report
Stock-Card
Fortinet

A-Score: 4.8/10

Value: 0.8

Growth: 9.1

Quality: 8.5

Yield: 0.0

Momentum: 5.5

Volatility: 4.7

1-Year Total Return ->

View Full Report
Stock-Card
Adobe

A-Score: 4.7/10

Value: 3.0

Growth: 7.7

Quality: 9.0

Yield: 0.0

Momentum: 1.5

Volatility: 7.3

1-Year Total Return ->

View Full Report
Stock-Card
Cloudflare

A-Score: 4.4/10

Value: 2.0

Growth: 8.1

Quality: 2.5

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

177.92$

Current Price

177.92$

Potential

-0.00%

Expected Cash-Flows