Quality Investor

Palantir Technologies Inc.

Rank #204HypergrowthWatchlistCompare with other stocks

PLTR · Nasdaq · Technology

Palantir Technologies Inc. (PLTR) — Rank #204 by gross profitability (GP/assets 0.32) · ROE 16.6% · Piotroski F-Score N/A.

As-of 2026-10-30 · CIK 0001321655 · all metrics point-in-time as of the filing date.

About

Palantir Technologies Inc. builds and deploys software platforms for the intelligence community to assist in counterterrorism investigations and operations in the United States, the United Kingdom, and internationally.

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It provides Palantir Gotham integrates with other platforms for defense offerings which enables users to see, understand, and act in the modern battlespace; operations centers to the tactical edge; integrating data from domains and sensors in near real-time; and situational awareness and accelerating operational decision-making, as well as facilitates the hand-off 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 helps 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 Palantir Apollo, a software that delivers software and updates across the business, as well as enables customers to deploy their software virtually in any environment; and Palantir Artificial Intelligence Platform that provides unified access to open-source, self-hosted, and commercial large language models (LLMs) that can transform structured and unstructured data into LLM-understandable objects and can turn organizations' actions and processes into tools for humans and LLM-driven agents. The company also has a strategic partnership with Ondas Inc. to develop and deploy AI-enabled operational capabilities to scale stratospheric, aerial, and land-based ISR missions. The company has a strategic collaboration with NVIDIA to deliver an intelligent engine for running NVIDIA AI and Nemotron open models in sovereign environments and with PwC to transform critical business operations and deliver measurable enterprise value.

The company was incorporated in 2003 and is headquartered in Aventura, Florida.

Industry
Software - Infrastructure
Sector
Technology
Filer Category
Large accelerated filer
Fiscal Year End
December 31

Company Snapshot

P/S is the primary valuation lens — earnings are reinvested, not available for P/E.

Market Cap

—

P/E (annual)

—

P/S (annual)

—

P/B

—

P/OCF (annual)

—

Shareholder Yield

—

Employees

4,401

Industry

Software - Infrastructure

Exchange

Nasdaq

9/11

Flags passed

PLTR passes 9/11 quality flags

2 cautions to review

  • CAUTION
    Dilution above 2%

    Annual share count increase exceeds 2%. May be acceptable for high-growth companies funding talent via stock compensation

  • CAUTION
    Disclosure regression

    A previously-disclosed line item is no longer reported — worth checking the filing for why

  • PASS
    Gross margin holding
  • PASS
    FCF not negative from investment
  • PASS
    Revenue not declining
  • PASS
    Operating margin holding
  • PASS
    Free cash flow intact
  • PASS
    Passes safety gate
  • PASS
    No competitive retreat
  • PASS
    SBC not compressing margin
  • PASS
    No valuation convergence

Strengths Revenue growth accelerating · Operating leverage expanding · Deferred revenue growing · RPO outpacing revenue · Sequential beat (rev + EPS)

No data Balance sheet — not counted as a pass.

A count of the 12 warning flags that could be evaluated. Unweighted: colour follows the worst flag.

Quality Profile

Profitability

1/1 pass
GP / assets
0.32
Return on equity
16.6%
Gross margin trend
PASS

Safety

1/1 pass
Balance-sheet safety
PASS
Debt / equity
0.18
Current ratio
7.23×
Net cash
$9.41B

Cash Flow

3/3 pass
Positive FCF
PASS
Cash-backed earnings
PASS
Accruals healthy
PASS
SBC / revenue
15.3%

Growth

1/2 pass
Revenue growth
56.2%
Piotroski F-Score
N/A
Share dilution
4.7%

Revenue growth and the path to profitability (margin trend) are the primary reads at this stage.

Profitability

Does it make money well?

No warning flags · GP/assets 40th percentile of 36 SIC 7372 peers

Gross profitability (GP / assets)

0.32

Primary signal (Novy-Marx).

40th pctl of 36 SIC 7372 peers

Return on equity

16.6%

Gross margin

82.4%

91st pctl of 36 SIC 7372 peers

Revenue growth (YoY)

56.2%

RPO growth (YoY)

141.2%

Remaining performance obligations growth — RPO > revenue = forward demand building.

Gross margin improving

Margin trend vs prior year.

PASS

Operating Leverage

2022202320242025
Revenue vs COGS
Revenue vs OpEx
Op. Income vs Revenue

Growth

Revenue CAGR (3Y)

32.9%

Revenue CAGR (5Y)

32.6%

Earnings CAGR (3Y)

—

FCF CAGR (3Y)

125.3%

Cash Flow Health

Is the cash real?

No warning flags · FCF 29% above net income

Free cash flow

$2.10B

Operating cash flow minus capex.

Positive free cash flow

PASS

FCF vs net income

29.3%

(FCF − net income) ÷ |net income|. Positive: cash above earnings. Negative: below.

FCF not below net income

Fails when free cash flow is below net income (yellow flag).

PASS

Accruals healthy

Cash-backed earnings.

PASS

SBC / revenue

15.3%

Stock-based comp intensity.

Balance Sheet Strength

Can it survive a storm?

Caution: Dilution above 2% · net cash $9.41B

Balance-sheet safety

Composite anti-fragile check.

PASS

Debt / equity

0.18

90th pctl of 32 SIC 7372 peers (best = lowest)

Current ratio

7.23×

94th pctl of 36 SIC 7372 peers

Quick ratio

7.09×

Net cash

$9.41B

Cash & equivalents minus total debt.

Piotroski F-Score

N/A

Only 8/9 components determinable.

Valuation

Is the price reasonable?

No warning flags

Valuation History

Current multiple vs historical range at each filing date. Band spans 25th-75th percentile.

P / E

Price / diluted EPS

211.2xCheap
211.2xmed 260.0x655.9x

P / S

Price / revenue per share

76.3xExpensive
9.2xmed 21.6x106.6x

P / B

Price / book value per share

46.2xExpensive
6.8xmed 15.4x61.0x

P / GP

Price / gross profit per share

92.6xExpensive
11.7xmed 30.1x132.8x

P / FCF

Price / free cash flow per share

162.5xExpensive
70.8xmed 95.3x267.6x

Capital allocation quality

Composite score

3.5 / 5

Good
Share count trend
4.7%1/5 Weak
Buyback timing
vs own P/E history5/5 Strong
Dividend growth consistency(non-payer or broken streak)
0 yr3/5 Good
Net debt trajectory(deleveraging)
21.9%5/5 Strong

Lifecycle Phase History

20202025
Hypergrowth
Op. Leverage

Price History

PLTR+570.8% · +46.1% CAGRSPY+85.8% · +13.1% CAGR