Fundamental analysis · SEC EDGAR · TTM through 31/03/2026

Fundamental analysis of Palantir Technologies Inc.

PLTR · Nasdaq · Technology

Fundamental quality

EXCELLENT

94

out of 100

Palantir Technologies Inc. fits the profile of a quality compounder: it pairs high return on capital (ROE 27%) with wide margins (net margin 43.7%) and a business that keeps growing (34.8% a year). On fundamental quality it scores 94 out of 100, profiling it as a company with solid fundamentals. Whether it's cheap or expensive depends on the current price, which you can compute in the tool.

What the company does

Palantir sells software platforms that help governments and large companies analyze huge amounts of data to make decisions. Historically tied to defense and intelligence, it's now growing in the private sector with its AI tools.

What will shape its future

  • The growth of its commercial (enterprise) business beyond government contracts.
  • Adoption of its AI platform as a growth engine.
  • Its very demanding valuation, which prices in years of high growth upfront.

Breakdown by area

I.Growth
95

EPS growth: 150% · Revenue growth: 34.8%

II.Profitability
92

Net margin: 43.7% · ROE: 27% · ROIC: 31.9%

III.Financial health
95

Net debt/EBITDA: -1.14x · FCF: 51.5%

Source: SEC EDGAR · TTM through 31/03/2026

The score combines growth, profitability and financial strength, and here its pillars hold up evenly.

Versus its sector

Percentile against the other 101 Technology companies in our coverage: how far it beats them on each metric (100 = best in sector).

Net marginbeats 95%
ROEbeats 65%
Growthbeats 87%
Cash generationbeats 99%
Less debtbeats 89%

Computed from the daily dataset scores. A high percentile places the company among the best in its sector on that metric; it is not a buy recommendation.

Key concepts

What do these metrics mean? Fundamental analysis · What is the P/E · What is EPS · What is ROE · Net & gross margin · Free cash flow

Palantir Technologies Inc. strengths

  • Growing earnings per share (150% annualized).
  • Excellent free-cash-flow generation (FCF margin of 51.5%): profit turns into real cash.
  • High gross margin (84.1%), pointing to pricing power.
  • Exceptional net margin (43.7%), high even for its sector: the business is clearly profitable.

Palantir Technologies Inc. risks and weaknesses

  • No clear weaknesses in the recent fundamentals, though the system doesn't assess qualitative factors (competition, regulation, management).

Palantir Technologies Inc. historical evolution

YearRevenueNet incomeFree cash flowNet debt
20201,093-1,166-309-1,813
20211,542-520321-2,291
20221,906-374184-2,599
20232,225210697-831
20242,8664621,141-2,099
20254,4751,6252,101-1,424

Between 2020 and 2025, revenue went from $1,093M to $4,475M (+310%) and net income went from -$1,166M to $1,625M (+239%).

Annual figures in millions of U.S. dollars ($M) per SEC filings. Net debt is total debt minus cash.

Latest results

Versus the same period a year earlier

Figures for the quarter ended March 31, 2026, versus the quarter ended March 31, 2025 (SEC filings):

  • Revenue+84.7%
  • Net income+306.7%

Automatic comparison between the two most recent periods filed with the SEC. One quarter doesn't make a trend: read it alongside the historical evolution above.

Dividend

This company doesn't pay a dividend: it reinvests all its earnings back into the business.

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Is Palantir Technologies Inc. cheap or expensive?

That depends on the current price. Look it up, enter it in the tool and get the full valuation verdict (P/E against its sector).

Compute the valuation →

Frequently asked questions

Is Palantir Technologies Inc. a good company to invest in?

In terms of business quality, Palantir Technologies Inc. scores 94 out of 100 in our analysis, placing it as a company of high fundamental quality. That said, this isn't a recommendation: whether it's a good investment also depends on its current price and your goals.

Is Palantir Technologies Inc. a profitable company?

Very. Palantir Technologies Inc. shows a net margin of 43.7% and an ROE of 27%, typical of a highly profitable business.

Does Palantir Technologies Inc. have a lot of debt?

No. Palantir Technologies Inc. has a net cash position: more cash than debt.

Is Palantir Technologies Inc. growing?

Its revenue has grown 34.8% annualized in recent years and its earnings per share 150%, and without interruption since 2020.

Does Palantir Technologies Inc. generate cash?

Yes. It converts about 51.5% of its revenue into free cash flow.

The thresholds are general and the system doesn't judge qualitative factors. See the full methodology and use this analysis as a first filter, never as a final decision.

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