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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.

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1.b. Last Insights on PLTR

Palantir Technologies' recent performance has been negatively impacted by valuation concerns, with the stock experiencing a 10.4% decline over the last five trading days, extending its year-to-date loss to 14.5%. The company's lofty valuation reflects investor confidence in its execution, AI-driven software adoption, and durable customers, but also raises concerns about its sustainability. The stock's recent sell-off has been exacerbated by a persistent risk of profit-taking amid valuation worries, with Palantir's price forming a risky pattern.

1.c. Company Highlights

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: 07:59

📋 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

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Seeking AI Exposure Following Palantir Earnings? Use This Tool

02:41

Source: zacks.com

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Palantir Technologies Inc. (PLTR) Q4 2025 Earnings Call Transcript

01:40

Source: seekingalpha.com

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"Great" Earnings Add Muscle to PLTR, Mind Software Industry Volatility

01:00

Source: youtube.com

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Palantir earnings beat expectations, can gold recover?

00:13

Source: youtube.com

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Market Indexes Bounce Back to Start a New Trading Week

Feb -02

Source: zacks.com

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Palantir: Q4 Earnings, Valuation, Technicals, And More (Rating Upgrade)

Feb -02

Source: seekingalpha.com

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Stock Market Today, Feb. 2: Palantir Technologies Rises on William Blair Upgrade and Subsequent Earnings Beat

Feb -02

Source:

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Palantir Technologies Inc. (PLTR) Q4 Earnings and Revenues Beat Estimates

Feb -02

Source: zacks.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
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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Stock-Card
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 ->

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

147.76$

Current Price

147.76$

Potential

-0.00%

Expected Cash-Flows