Exceptional Margins Meet High Growth as Palantir Contends with Persistent Market Volatility

PLTR

Scaling software efficiency supports the business model through the next fiscal year

Comprehensive Financial Analysis • 2026-04-08

1

Company Profile & Classification

Sector, moat, style, market positioning

2

Equity Performance & Market Positioning

Returns, risk metrics, smart money positioning

3-4

3

Revenue, Earnings & Margin History

Growth trajectory, margins, EPS, cost structure

5-6

4

Profitability & Return on Capital

DuPont, ROIC, efficiency, asset turnover

7-9

5

Balance Sheet & Cash Flow Health

Liquidity, solvency, cash flow, FCF statistics

10-12

6

Executive Insights & Key Takeaways

Summary and investment implications

13

Company Profile & Classification

PLTR — Palantir Technologies Inc.

Technology · Software - Infrastructure $327.82B · Mega Cap B2B/B2C Platform

Business & Competitive Position

💰 Revenue Model Subscription/SaaS

🏗️ Asset Profile Asset-Light

🛡️ Economic Moat

Narrow Moat (Market Leader)

🔒 Brand🔒 Switching Costs

📈 Pricing Power

Strong

🏆 Market Position Established Platform

Growth & Valuation

🎯 Invest Style

Value Blend Growth Quality

🚀 Growth

Declining Low Moderate High

📊 Revenue +56.2% YoY

🔄 Cyclicality

Defensive Mod Cyclical Highly Cyclical

💲 Valuation

259.2x P/E 57.0x P/B 291.6x EV/EBITDA

⚖️ Tier

Expensive

📊 Beta 1.74 (High Volatility)

Equity Performance & Market Positioning

Palantir Technologies Inc. (PLTR) — Stock Returns

Recent Performance

-4.5%

1 Month

vs S&P -2.7

-13.8%

3 Month

vs S&P -9.6

-13.3%

6 Month

vs S&P -11.8

-15.6%

YTD

vs S&P -12.2

79.5%

1 Year

vs S&P +56.9

Underperformed the S&P 500 by 1.8% over the past month with a -4.5% return.
YTD decline of 15.6% trails the broader market index by 3.4%.
Trailing 3-month return of -13.8% reflects higher volatility than the S&P's -9.6% move.

Long-Term Performance (Annualized)

160.9%

3 Year

vs S&P +143.7

45.2%

5 Year

vs S&P +34.4

64.9%

Full History

vs S&P +56.9

3-year annualized return of 160.9% outperformed the S&P 500 by 17.2%.
Maintained a 45.2% 5-year annualized return, beating the benchmark by 10.8%.
Full history annualized return of 64.9% provides a 8.0% premium over market averages.

Highlight

One-year return of 79.5% significantly outpaces the S&P 500 by 22.6%.

Watch Out

Recent momentum has stalled with consistent underperformance against the S&P 500 across all periods under 6 months.

Equity Performance & Market Positioning

Palantir Technologies Inc. (PLTR) — Risk & Smart Money

Risk Profile

48.1%

Volatility (20D)

1.67

Beta

1.56

Sharpe Ratio

-37.8%

Max Drawdown (1Y)

46

RSI (14)

59%

52-Week Range

Beta of 1.7 indicates 70% higher systematic risk than the broader market
Sharpe ratio of 1.6 demonstrates strong risk-adjusted returns relative to 48.1 volatility
Historical Max Drawdown of -37.8% highlights significant capital impairment risk
RSI of 45.7 suggests neutral momentum with room for upside before overbought territory

Smart Money Positioning

55.8%

Institutional Ownership

+3.6% QoQ

0.03

Insider Buy/Sell

Institutional ownership currently sits at a majority stake of 55.83%
Net institutional accumulation grew by 3.57% in the most recent period
Insider Buy/Sell ratio of 0.03 reflects near-total dominance of management selling

Watch Out

Insider B/S ratio of 0.03 indicates a lack of management conviction at current price levels

Revenue, Earnings & Margin History

Palantir Technologies Inc. (PLTR) — Revenue & Growth

Revenue & Growth

Annual revenue reached $4.5B, driven by a 56.2% year-over-year increase.
Long-term scaling remains robust with a 32.9% 3-year revenue CAGR.
Profitability established with full-year EPS of $0.63 per share.

Highlight

Current YoY revenue growth of 56.2% significantly outpaces the 3-year average of 32.9%.

Margin Evolution

Exceptional unit economics maintained with an 82.4% Gross Margin.
Strong conversion of revenue to liquidity with a 46.9% Free Cash Flow margin.
Operating Margin reached 31.6% while maintaining a 12.5% R&D-to-revenue reinvestment rate.

Watch Out

Stock-based compensation (SBC) remains elevated at 15.3% of total revenue.

Revenue, Earnings & Margin History

Palantir Technologies Inc. (PLTR) — 8-Year Financial History

P&L Breakdown & Cost Structure

Growth Summary (CAGR)

📈 Revenue

3Y

+32.9%

5Y

+32.6%

💰 EPS

Annual revenue reached $4.5B, driven by a 56.2% year-over-year increase.
Long-term scaling remains robust with a 32.9% 3-year revenue CAGR.
Profitability established with full-year EPS of $0.63 per share.

Profitability & Return on Capital

Palantir Technologies Inc. (PLTR) — DuPont & Efficiency

DuPont Decomposition (2025)

22.0%

ROE

=

36.3%

Net Margin

×

0.50x

Asset Turnover

×

1.2x

Eq. Multiplier

ROE normalized to 22.0% from 33.1% as capital structure stabilized
Net margin surged 133.7 percentage points to 36.3%, driving core profitability
Asset turnover improved to 0.50x, indicating higher revenue generation per asset dollar
Equity multiplier shifted from -0.82 to 1.20, reflecting a transition to a positive equity base

Highlight

Achieved massive net margin expansion from -97.4% to 36.3%, signaling a permanent shift to GAAP profitability.

Profitability & Efficiency History

Year	ROE%	Margin%	Turnover	Leverage	ROIC%	ROCE%	ROA%
2025	22.0	36.3	0.50	1.20	19.0	18.3	18.3
2024	9.2	16.1	0.45	1.27	6.0	5.8	7.3
2023	6.0	9.4	0.49	1.30	3.3	3.2	4.6
2022	-14.6	-19.6	0.55	1.35	-5.9	-5.6	-10.8
2021	-22.7	-33.7	0.47	1.42	-16.8	-15.9	-16.0
2020	-76.6	-106.7	0.41	1.77	-61.8	-56.2	-43.4
2019	29.3	-78.1	0.47	-0.80	-111.5	-66.6	-36.4
2018	33.1	-97.4	0.42	-0.82	-86.8	-69.3	-40.5

ROIC reached 19.0%, demonstrating strong value creation on invested capital
Cash Conversion Cycle (CCC) sits at 81 days, typical for long-cycle enterprise contracts
Asset utilization increased 19% year-over-year to 0.50x

Watch Out

The 81-day Cash Conversion Cycle suggests significant working capital is tied up in receivables.

Profitability & Return on Capital

Palantir Technologies Inc. (PLTR) — ROIC & Cash Conversion

Return on Invested Capital

Current19.0%

Mean-31.8%

Min-111.5%

Max19.0%

Range130.5pp

Cash Conversion Cycle

Current81d

Mean14d

Min-53d

Max81d

ROIC reached 19.0%, demonstrating strong value creation on invested capital
Cash Conversion Cycle (CCC) sits at 81 days, typical for long-cycle enterprise contracts
Asset utilization increased 19% year-over-year to 0.50x

Profitability & Return on Capital

Palantir Technologies Inc. (PLTR) — Asset Turnover Decomposition

Asset Turnover in Days (2025)

0d

Inventory Days

+

85d

Receivables Days

+

21d

Fixed Asset Days

≈

726d

Total Asset Days

(0.50x turn)

Cash Conversion Cycle (2025)

0d

Inventory Days

+

85d

Receivables Days

−

4d

Payables Days

=

81d

CCC

Turnover & Days History

Year	Total Asset Days	Receivables Days	Fixed Asset Days	Payables Days	Cash Conversion Cycle
2025	726	85	21	4	81
2024	808	73	31	0	73
2023	742	60	38	10	50
2022	663	49	52	40	9
2021	769	45	59	81	-35
2020	899	52	82	17	35
2019	784	25	16	78	-53
2018	877	12	18	60	-49

ROE normalized to 22.0% from 33.1% as capital structure stabilized
Net margin surged 133.7 percentage points to 36.3%, driving core profitability
Asset turnover improved to 0.50x, indicating higher revenue generation per asset dollar
Equity multiplier shifted from -0.82 to 1.20, reflecting a transition to a positive equity base

Balance Sheet & Cash Flow Health

Palantir Technologies Inc. (PLTR) — Balance Sheet

Balance Sheet Items ($M)

Year	Total Assets	Total Liabilities	Total Equity	Total Debt	Net Debt	Cash	Current Assets	Current Liabilities
2025	$8900M	$1412M	$7387M	$229M	$-1194M	$1424M	$8358M	$1176M
2024	$6341M	$1246M	$5003M	$239M	$-1859M	$2099M	$5934M	$996M
2023	$4522M	$961M	$3476M	$229M	$-602M	$831M	$4139M	$746M
2022	$3461M	$819M	$2565M	$249M	$-2349M	$2599M	$3042M	$588M
2021	$3247M	$956M	$2291M	$260M	$-2031M	$2291M	$2863M	$660M
2020	$2691M	$1168M	$1523M	$457M	$-1554M	$2011M	$2257M	$604M
2019	$1594M	$3575M	$-1981M	$396M	$-683M	$1079M	$1214M	$729M
2018	$1431M	$3182M	$-1751M		$-1116M	$1116M	$1220M	$532M

Liquidity & Solvency

8/9

Piotroski F-Score

Strong

180.4

Altman Z-Score

Safe

Exceptional liquidity position with a Current Ratio of 7.11, significantly exceeding the 1.5 benchmark.
Ultra-conservative capital structure maintained with a minimal Debt-to-Equity ratio of 0.03.

Balance Sheet & Cash Flow Health

Palantir Technologies Inc. (PLTR) — Cash Flow

Cash Flow Statement ($M)

Year	Operating CF	Investing CF	Financing CF	CapEx	Free Cash Flow	Buybacks
2025	$2134M	$-2784M	$-27M	$-34M	$2101M	$-75M
2024	$1154M	$-341M	$463M	$-13M	$1141M	$-64M
2023	$712M	$-2711M	$219M	$-15M	$697M
2022	$224M	$-45M	$86M	$-40M	$184M
2021	$334M	$-398M	$307M	$-13M	$321M
2020	$-297M	$-15M	$1036M	$-12M	$-309M	$-4M
2019	$-165M	$-22M	$325M	$-13M	$-178M	$-11M
2018	$-39M	$-7M	$46M	$-13M	$-52M	$-8M

Cash Flow Trends

Superior cash flow conversion with an OCF/NI ratio of 1.31, ensuring earnings are high-quality and cash-backed.
Elite cash flow generation efficiency with a Free Cash Flow margin of 46.94%.
Top-tier fundamental strength reflected in a Piotroski Score of 8/9 and an Altman Z-Score of 180.37.

Balance Sheet & Cash Flow Health

Palantir Technologies Inc. (PLTR) — FCF & Capital Returns

Free Cash Flow Statistics

Buyback & Dividend Trends

Superior cash flow conversion with an OCF/NI ratio of 1.31, ensuring earnings are high-quality and cash-backed.
Elite cash flow generation efficiency with a Free Cash Flow margin of 46.94%.
Top-tier fundamental strength reflected in a Piotroski Score of 8/9 and an Altman Z-Score of 180.37.

Executive Insights & Key Takeaways

Key Takeaways

1Y Return

▲ +79.5%

vs S&P +56.9pp

Revenue 3Y CAGR

▲ +32.9%

5Y: +32.6%

Net Margin

36.3%

▲ 3Y ago: -19.6%

ROIC

19.0%

▲ 3Y ago: -5.9%

FCF Margin

46.9%

▲ 3Y ago: 9.6%

Piotroski

8/9

Strong

Palantir exhibits exceptional growth and market outperformance, evidenced by a 79.5% one-year return and 56.2% YoY revenue growth. The firm maintains elite profitability with 82.4% gross margins and a 46.9% FCF margin, reflecting a highly scalable and cash-generative business model. Financial health is robust, characterized by a fortress balance sheet with negligible debt and a Piotroski score of 8/9, signaling strong operational efficiency.

✅ Strengths

Hyper-growth at scale with 56.2% YoY revenue growth and a 32.9% 3Y CAGR, proving the company's ability to capture massive market share in the AI/analytics sector.
Superior unit economics featuring 82.4% gross margins and a 46.9% FCF margin, which allows for aggressive reinvestment while maintaining high profitability.
Fortress balance sheet liquidity with a 7.11 current ratio and a near-zero 0.03 debt-to-equity ratio, providing total insulation against interest rate volatility and credit risks.
Exceptional risk-adjusted returns highlighted by a 1.56 Sharpe ratio and +56.9% excess return over the S&P 500, indicating significant alpha generation for shareholders.

⚠️ Risks

High market sensitivity reflected in a 1.67 Beta and 48.1% volatility, making the stock susceptible to outsized losses during broader market downturns.
Significant historical price instability as evidenced by a -37.8% Max Drawdown, cautioning investors against potential short-term capital erosion.
Working capital management challenges indicated by an 81-day Cash Conversion Cycle (CCC), requiring high operational efficiency to prevent cash being trapped in the sales cycle.

PLTR

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