Palantir Technologies Inc. (PLTR) | Investment Case

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

Breaking News: Palantir Technologies Inc has seen significant volatility in its shares lately. The company's strong appetite for AI analytics has driven recent gains, with shares climbing about 5% on Monday. Despite posting top-notch financial results, some analysts consider the stock to be overpriced, with a premium that makes it unattractive to invest in. Others suggest that while Palantir has been growing rapidly, there are alternative stocks, such as UiPath, that offer similar potential at a lower valuation. Is Palantir still a millionaire maker stock ? Analysts have mixed feelings .

1.c. Company Highlights

Last Price	142.91
Change Percentage	5.16%
Open	136.56
Previous Close	135.9
Market Cap ( Millions)	326454
Volume	57149262
Year High	207.52
Year Low	66.12
M A 50	172.94
M A 200	160.13

FCF Yield	0.64%
Dividend Yield	0.00%
ROE	25.66%
Debt / Equity	3.10%
Net Debt / EBIDTA	-78.20%
Price To Book	46.18
Price Earnings Ratio	209.91
Price To FCF	155.34
Price To sales	72.94
EV / EBITDA	212.95

2. Palantir's Q4 2025 Earnings: A Testament to its Unique AI Approach

Palantir Technologies Inc.'s fourth quarter 2025 results showcased historic growth, with overall revenue surging 70% year over year to $1.407 billion. The company's adjusted operating income was $798 million, representing a 57% margin, and adjusted free cash flow was $791 million. The earnings per share (EPS) came in at $0.25, beating estimates of $0.2302. The US business now commands 77% of total revenue, up 93% year over year and 22% sequentially, with revenue surpassing $1 billion for the first time.

Publication Date: Feb -03

                                    📋 Highlights
                                    Revenue Surge:
                                                Q4 revenue hit $1.407B, up 70% YoY, driven by 77% US revenue share ($1B+ for first time).
Rule of 40:
                                                Score reached 127% (Q4), up 46 points YoY; full-year 2026 guidance at 118%.
US Commercial Growth:
                                                137% YoY (and 28% sequential) surge, exceeding $3.144B in 2026 guidance.
Adjusted Free Cash Flow:
                                                $2.3B generated (Q4), 51% margin, 82% YoY growth.
TCV & Customer Value:
                                                Closed $4.3B TCV in Q4; top 20 customers averaged $94M trailing revenue (45% YoY growth).

                                

Revenue Growth and Segmentation

The US commercial business grew 137% year over year and 28% sequentially, while the US government business grew 66% year over year and 17% sequentially. For the full year 2025, revenue grew 56% year over year to $4.475 billion. The company guides for full year 2026 revenue of $7.19 billion at the midpoint, representing 61% growth year over year. The company's RPO growth received a tailwind, primarily driven by its commercial business.

Profitability and Cash Flow

Adjusted income from operations was $798 million in Q4, representing a 57% margin, and $2.254 billion for the full year, representing a 50% margin. The company's adjusted gross margin was 86% for the quarter and 84% for the full year. Palantir generated $777 million in cash from operations and $791 million in adjusted free cash flow in Q4.

Guidance and Future Prospects

For 2026, the company expects revenue of $7.182 billion to $7.198 billion, with US commercial revenue exceeding $3.144 billion, representing a growth rate of at least 115%. The company is guiding to a Rule of 40 score of 118% for the full year 2026. CEO Alexander Karp emphasized that the company's performance is a testament to its unique approach to AI, ontology, and data integration.

Valuation and Outlook

With a P/S Ratio of 86.63 and an EV/EBITDA of 349.05, the market is pricing in significant growth expectations. Analysts estimate next year's revenue growth at 38.9%. Given the company's strong financial performance and growth prospects, the current valuation appears to be aggressive, but justified by the company's unique position in the market and the value it provides to clients.

3. NewsRoom

Forbes temporarily pulls Palantir profile — allegdly over ICE contracts

Feb -09

Source: nypost.com

Better AI Stock to Buy Now: Palantir or Nvidia?

Feb -09

Source: fool.com

5 Top Software Stocks Investors Can Buy Now (APP, PLTR, HOOD, CRM, NOW)

Feb -09

Source: zacks.com

Palantir Shares Jump on Strong Appetite for AI Analytics

Feb -09

Source: gurufocus.com

Here's Why I Wouldn't Touch Palantir Stock With a 10-Foot Pole

Feb -09

Source: fool.com

2 AI Stocks to Buy Over Palantir

Feb -09

Source: 247wallst.com

Thiel Bypasses Palantir and Nvidia for Meta, Tesla, Apple in Contrarian AI Play

Feb -09

Source: 247wallst.com

The Only 3 AI Stocks Billionaire Peter Thiel's Hedge Fund Owns (Hint: Palantir or Nvidia Aren't on the List)

Feb -09

Source: fool.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

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

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Palantir

A-Score: 4.8/10

Value: 0.0

Growth: 7.6

Quality: 8.9

Yield: 0.0

Momentum: 10.0

Volatility: 2.7

1-Year Total Return ->

Oracle

A-Score: 4.8/10

Value: 2.7

Growth: 6.8

Quality: 6.0

Yield: 2.0

Momentum: 8.5

Volatility: 3.0

1-Year Total Return ->

Zscaler

A-Score: 4.7/10

Value: 2.3

Growth: 8.4

Quality: 3.5

Yield: 0.0

Momentum: 9.0

Volatility: 5.0

1-Year Total Return ->

Fortinet

A-Score: 4.5/10

Value: 1.0

Growth: 9.1

Quality: 7.9

Yield: 0.0

Momentum: 4.0

Volatility: 5.0

1-Year Total Return ->

Adobe

A-Score: 4.5/10

Value: 3.0

Growth: 5.4

Quality: 9.2

Yield: 0.0

Momentum: 2.0

Volatility: 7.3

1-Year Total Return ->

Cloudflare

A-Score: 4.4/10

Value: 2.0

Growth: 8.1

Quality: 2.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

52.41%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

16.82%

Palantir Technologies Inc. - US69608A1088

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on PLTR

1.c. Company Highlights

Expensive

Better Quality

Higher Growth

Earnings Beats

Revenues Beats

Strong Momentum

Revenues Miss

2. Palantir's Q4 2025 Earnings: A Testament to its Unique AI Approach

Revenue Growth and Segmentation

Profitability and Cash Flow

Guidance and Future Prospects

Valuation and Outlook

3. NewsRoom

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%

Commercial

Expected Growth: 25.2%

7. Detailed Products

Gotham

Foundry

Apollo

Metropolis

8. Palantir Technologies Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

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

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

142.91$

Current Price

142.91$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA