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Ticker Alpha · Palantir Technologies Inc. · NASDAQ: PLTR
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Ticker Alpha
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AI Research Report
7 August 2026  ·  Initiation of coverage
NASDAQ: PLTR

Palantir Technologies Inc.

Information Technology/Software - Infrastructure·Mega Cap·Reported in USD

Gotham, Foundry, Apollo and AIP — software for government and commercial decisioning. ~4,429 employees · commercial is re-rating the mix.

Bullish
Bearish
Neutral
Bullish
$172.01
Last close · 7 Aug 2026
52-week range $106.37–$207.52
Initiation  ·  12-month horizon  ·  Risk: High

Commercial + AIP is re-rating the mix while government still funds half the base. Trailing P/E sits at the 4th percentile of Palantir's profitable history — earnings compounded under a −5.6% share price. Still: 63.9× sales is mid-pack in its own EV/S history and 3× the software peer median, so the multiple still needs the growth to print. Bullish on commercial crossing through; base below Street median because SBC (13.6% of sales) keeps the trust discount.

What Would Change Our View
▲Commercial >50% of revenue with Rule of 40 held
▼US commercial growth decelerates below 50% YoY, or a major defence programme slips a year
Key Catalysts
2 Nov 2026Q3 FY26 results
early Feb 2027Q4 + FY27 guide
mid-2027AIP bootcamp cadence
Market Cap
$395B
EV $393B · net cash
Revenue TTM
$6.16B
FY26 cons. ~$8.1B
Rev. Growth
+56.2%
+92.8% latest qtr
Gross Margin
84.8%
84.7% latest qtr
FCF Margin
54.6%
$3.36B TTM
P / E
145.8×
76× on FY27E
Share Price — 12 Months Back, 12 Months Forward
Weekly closes, USD
Street target range $80–$215 · mean $172.17 80120160200240 $230Bull · +33.7%$185Base · +7.6%$95Bear · −44.8% AUG 2025NOVFEB 2026MAYTODAYNOVFEB 2027MAYAUG 2027
Ticker Alpha Scorecard
Scored 1–5 against peers and Palantir's own 5-year history
Growth
Exceptional
Profitability
Best in set
Balance Sheet
Fortress
Valuation
Stretched vs peers
TA
Ticker Alpha  ·  Palantir Technologies Inc.  ·  NASDAQ: PLTR
02 Business & Model

What Palantir Actually Sells

Palantir sells software platforms — Gotham for government, Foundry for commercial, Apollo for continuous deployment, and AIP as the LLM operations layer on top. Capex runs at ~0.7% of revenue: this is software, not fabs. On $6.16B of TTM sales the company converts $3.36B of free cash.

The growth story is commercial + AIP catching the government base. In FY25, Government was $2.40B and Commercial $2.07B — almost even. The Q2 FY26 run-rate implies commercial may lead soon. Everything on the next six pages is a judgment about how long that crossing compounds before the multiple has to compress.

Revenue / Employee
$1.39M
~4,429 staff
R&D / Revenue
10.4%
Software product
Capex / Revenue
0.7%
Not a fab model
Gross Margin
84.8%
On $6.16B TTM
SBC / Revenue
13.6%
Dilution drag
Commercial Share
46.3%
Of FY25 product mix
Revenue by Segment — FY21 to FY25
Company filings, $M. Fiscal years end 31 December · Commercial highlighted
01B2B3B4B5B FY21FY22FY23FY24FY25 Government53.7% of revenue · +53.1% YoYCommercial46.3% of revenue · +60.0% YoY $1.54B $4.48B

Government still funds half the dollars, but Commercial is the re-rating engine. FY25 put Gov $2.40B against Comm $2.07B; AIP bootcamps and US commercial growth are what pull the mix through 50%. The multiple requires that crossing to keep printing.

Where The Revenue Is Billed
FY22 vs FY25
FY22 FY25
United States41.9% 3-yr CAGR$3.32BUnited Kingdom24.6% 3-yr CAGR$427MRest of World11.6% 3-yr CAGR$728M 0$1.2B$2.4B$3.6B

United States grew at a ~42% three-year CAGR from FY22 to FY25; UK ~25%, Rest of World ~12%. The commercial acceleration is a US story first.

Competes Against
DatabricksSnowflakeServiceNowC3.aiAndurilAccenture / Deloitte
Moat Assessment
Moderate
Ontology and switching costs are real. Hyperscaler + Databricks stacks and SI incumbents keep the moat from going Wide.
Structural Advantages
▲Ontology + AIP raise switching costs once workflows sit on the platform
▲Defence programme incumbency funds the base while commercial expands
▲84.8% GM, 42.8% OM, net cash ~$1.8B — software economics at scale
Structural Weaknesses
▼SBC at 13.6% of sales keeps the discount of trust high
▼Government programme concentration — a slip rewrites bookings
▼Databricks, Snowflake and hyperscaler stacks compete for the same commercial cheque
TA
Ticker Alpha  ·  Palantir Technologies Inc.  ·  NASDAQ: PLTR
03 Financial Performance

Has It Actually Performed?

Four-year revenue CAGR is 30.5%, with FY25 alone at +56.2%. Operating margin swung from −26.7% to 31.6% in four years; TTM is already 42.8%. Free cash now exceeds net income.

4-Yr Revenue CAGR
30.5%
FY25 alone +56.2%
TTM EPS
$1.18
FY25 alone $0.63
FCF Conversion
111%
of net income, TTM
Incremental Margin
~69%
FY25 Δ EBIT / Δ revenue
ROIC
25.6%
Best-in-set OM helps
Five-Year Summary
$B except per share · fiscal years end 31 December
  FY21 FY22 FY23 FY24 FY25 What it says
Revenue 1.541.912.232.874.48 Acceleration into FY25, not a one-quarter spike
Revenue growth +41.1%+23.6%+16.7%+28.8%+56.2% Commercial + AIP bent the curve
Gross margin 78.0%78.6%80.6%80.2%82.4% Software GM; TTM already 84.8%
Operating margin −26.7%−8.5%5.4%10.8%31.6% Leverage arrived in FY23 and kept compounding
Diluted EPS −$0.27−$0.18$0.09$0.19$0.63 TTM EPS already $1.18 on the Q2 print
Free cash flow 0.320.180.701.142.10 47% FCF margin in FY25 — cash follows earnings
Net Cash
~$1.8B
EV $393B on $395B cap
Net Debt / EBITDA
−0.6×
Net cash position
FCF Yield
0.85%
$3.36B TTM FCF
Current Ratio
7.2×
Fortress liquidity
Capex / Revenue
0.7%
Asset-light
Revenue
+41.1%+23.6%+16.7%+28.8%+56.2% 02B4B 2122232425 $M revenue · YoY growth above
Margins
Gross Op. FCF
82.4% 31.6% 46.9% -30%-15%0%15%30%45% 2122232425 Operating leverage arrived in FY23 and kept compounding
Earnings Quality
Net income Free cash flow
01.5B3.0B 2122232425 FCF now exceeds net income
Earnings Track Record — Last Eight Quarters
Reported EPS against consensus at the time
+10.3%Q3 24+27.3%Q4 24+1.1%Q1 25+15.8%Q2 25+25.1%Q3 25+8.6%Q4 25+13.8%Q1 26+19.0%Q2 26 +0%+10%+20%+30%

Eight beats from eight, wide band — +1.1% to +27.3%. The Street keeps underestimating operating leverage; the printed surprise is large and the commercial mix still matters more.

TA
Ticker Alpha  ·  Palantir Technologies Inc.  ·  NASDAQ: PLTR
04 Peers & Relative Position

How Does It Compare?

Against ten software peers, Palantir prints best growth and best operating margin in the set — and the richest EV/Sales by far (~64× vs ~21× peer median). The operating story is exceptional; the sales multiple still requires it to keep printing.

Comparable Companies
TTM figures · sorted by market capitalisation · Palantir highlighted
Company Market cap Rev growth Gross margin Op margin ROIC EV / Sales P / E
Oracle ORCL$423B+17.4%65.8%30.8%8.0%8.1×24.7×
Palantir PLTR$395B+56.2%84.8%42.8%25.6%63.9×145.8×
Palo Alto PANW$297B+14.9%71.9%9.6%1.7%27.9×305.8×
CrowdStrike CRWD$218B+21.7%75.0%-3.9%6.0%42.1×n/m
Salesforce CRM$158B+9.6%77.6%21.9%9.2%4.5×22.2×
ServiceNow NOW$129B+20.9%74.8%11.4%5.5%9.2×77.6×
Snowflake SNOW$115B+29.2%67.1%-26.1%-27.2%22.9×n/m
Cloudflare NET$107B+29.8%72.6%-14.1%-6.8%43.2×n/m
Datadog DDOG$83B+27.7%79.5%0.4%0.2%21.2×470.5×
MongoDB MDB$32B+22.8%72.0%-4.2%-3.5%11.9×n/m
Zscaler ZS$27B+23.3%76.7%-4.7%-3.2%8.9×n/m
Peer median excl. PLTR$122B+22.3%73.7%-1.8%0.9%16.6×77.6×
Growth Against Valuation
Revenue growth vs EV/Sales
peer fit ORCLPLTRPANWCRWDCRMNOWSNOWNETDDOGMDBZS 0×20×40×60× 10%20%30%40%50% EV / SALES REVENUE GROWTH, LATEST FY
Where Palantir Ranks
Percentile in the eleven-name set
Revenue growth
100th pct
Gross margin
100th pct
Operating margin
100th pct
Return on capital
100th pct
Cheapness on P/E
40th pct
Cheapness on EV/Sales
0th pct

Best growth and best OM in the set — richest sales multiple by far. Peers cluster near ~21× sales; Palantir sits near 64×. That gap prices commercial durability and Rule of 40 — which is why our base sits below the Street median even with a bullish rating.

Oracle  ·  ORCL
Scale
Cloud / apps giant
Multiple
Cheaper on sales
Incumbent cheque
Broader stack, slower growth — less AIP torque.
ServiceNow  ·  NOW
Model
Workflow SaaS
Overlap
Enterprise ops
Closest quality peer
High OM, lower growth — without Palantir's gov base.
Snowflake  ·  SNOW
Model
Cloud data
Margin
Still catching up
Competes for the same ACV
Data platform rival — thinner OM, lower multiple.
TA
Ticker Alpha  ·  Palantir Technologies Inc.  ·  NASDAQ: PLTR
05 Valuation & What's Priced In

What Is It Worth?

Cheap against its own P/E history, expensive against peers on sales. Revisions have drifted down as the share price digested 2025. What is priced in: FY27 ~$12B at ~76× EPS.

Share Price
$172.01
52-wk $106.37–$207.52
Enterprise Value
$393B
$395B cap · net cash
EV / Sales
63.9×
52nd pct of own hist.
EV / EBITDA
126.8×
6th pct of own hist.
P / E
145.8×
4th pct · 76× FY27E
FCF Yield
0.85%
On market cap
Against Its Own History
Daily observations since profitability
EV / Salesmedian63.9×18.1×116.9×52thEV / EBITDAmedian126.8×510.5×6thP / Emedian145.8×616.2×4th Bar spans the 5th to 95th percentile of daily observations since profitability · dot is today
Against Peers And Sector
Median multiples
P / E, TRAILINGPalantir145.8×Software peers*77.6×NASDAQ tech47.6×EV / SALESPalantir63.9×Software peers21.2×

Cheap on earnings history, expensive on sales — against peers. P/E sits at the 4th percentile of Palantir's profitable history (earnings catch-up under a flat share price). EV/Sales is the 52nd percentile of its own range and still ~3× the ~21× software peer median. The multiple still requires the growth to keep printing.

What Today's Price Requires
Street path vs our base · software multiples compress when growth decelerates
On The Street's Path
FY26E revenue / EPS
~$8.1B / $1.59
FY27E revenue / EPS
~$12.1B / $2.26
FY27E P / E
~76×
Verdict
Growth keeps printing
On Our Base Path
FY27E revenue
~$12.1B
FY27E op. margin
45%
FY27–28E EPS path
~$2.3–3.4
Verdict
Commercial crosses 50%
Which Is It?
Street FY27, trust discount

Accepting ~$12B in FY27 at ~76× EPS prices continued commercial torque. Our $185 is 5.1% below the Street median — SBC and programme concentration keep the discount of trust high even with a bullish rating.

Street Target Revisions
Average target by lookback window
$160$180$200 LAST YEARLAST QUARTERLAST MONTHTODAY $186 $172 -7% Average Street price target by lookback window · targets have drifted down as the share price digested 2025
Estimates & Ratings
26 analysts
Mean target, today
$172.17
Median target
$195
FY26 EPS consensus
$1.59 → 108×
FY27 EPS consensus
$2.26 → 76×
FY28 EPS consensus
$3.40 → 51×
Ratings
13 buy · 10 hold · 3 sell

The mean of $172.17 is dragged by lowballs toward $80; the median at $195 is the cleaner read. Our $185 sits between — above the mean, below the median.

TA
Ticker Alpha  ·  Palantir Technologies Inc.  ·  NASDAQ: PLTR
06 Scenarios & Target Derivation

How We Got To $185

Every assumption behind the three targets on page one is on this page. Valued primarily on FY27–28E EPS × exit multiple. Change one input and the number moves.

The Assumptions Behind Each Case
12-month horizon · valued on FY27–28E EPS × exit multiple · target date August 2027
Driver Bear Base Bull Why it moves
FY27E revenue $11.2B$12.1B$13.1B Street lo / mean / hi for FY27
FY27E operating margin 28%45%50% Commercial mix vs SBC / growth fade
FY27–28E EPS ~$1.7~$2.3–3.4~$4.1 Aligned to Street EPS path
Diluted shares, B 2.302.302.28 ~2.30B shares · float ~95.5%
Exit P / E 55×~80×55–70× Bull is earnings, not multiple expansion
12-month target $95$185$230 −44.8% / +7.6% / +33.7%
What Each Case Looks Like
FY25 actual, then three years modelled · FY26–27 pinned to the consensus range
REVENUE, $B $14.0B $18.0B $20.1B 58121620 FY25AFY26EFY27EFY28E OPERATING MARGIN 22.0% 46.0% 52.0% 20%30%40%50% FY25AFY26EFY27EFY28E
For The Bull Case To Be Right
All four, not one
▲Commercial holds above 50% of revenue with Rule of 40 intact
▲FY27 revenue tracks the Street high near $13.1B
▲Operating margin expands toward 50% as AIP scales
▲AIP bootcamp conversion lifts multi-year commercial ACVs
For The Bear Case To Be Right
Any two are enough
▼US commercial growth decelerates below 50% YoY
▼A major defence programme slips a fiscal year
▼SBC stays elevated and the trust discount widens
▼Operating margin compresses toward 28% as growth fades
Target Price Sensitivity
FY27–28E EPS × exit P/E
FY27–28E EPS40×55×70×85×100×
$1.7$68$94$119$145$170
$2.3$92$126$161$195$230
$2.8$112$154$196$238$280
$3.4$136$187$238$289$340
$4.1$164$225$287$348$410
Expected Value Check
Bear $95 × 25%
$23.75
Base $185 × 50%
$92.50
Bull $230 × 25%
$57.50
Probability-weighted
$174
Headline base target
$185
Expected return
+1.0%

The cell at ~$2.3 × 80× ≈ $184 sits on the $185 base. Bull is an earnings path (~$4.1 EPS), not multiple expansion — exit multiples stay in the mid-50s to 70s on the high EPS case.

TA
Ticker Alpha  ·  Palantir Technologies Inc.  ·  NASDAQ: PLTR
07 Key Catalysts

What To Watch, And When

Seven events over the next eighteen months. The two heaviest are a November print against ~$2.16B and an early-February guide against the Street's $12.1B FY27.

The Next Eighteen Months
Dot size is impact · a hollow dot means the date is estimated, not confirmed
Positive skew Two-sided Negative skew
Q3 26Q4 26Q1 27Q2 27Q3 27 EARNINGSDEMANDPRODUCT Q3 FY262 Nov 2026Fed budgetslate Nov 2026Q4 + guideearly Feb 2027AIP bootcampsmid 2027 2027Maven / ArmyH1 2027Q1 FY27early May 2027Ontologymid 2027 2027
Catalyst Register
Impact is the share of the thesis the event settles, not the expected price move
2 Nov
2026
Confirmed
Q3 FY26 results
Consensus wants ~$2.16B and $0.41. Commercial growth and Rule of 40 framing decide the multiple. Watch: US commercial growth vs government, and whether SBC stays above 12% of revenue.
Impact
Decisive
Skew
Two-sided
All three
late Nov
2026
Estimated
US FY27 appropriations clarity
Government is still half the company. CR continuing resolutions delay bookings even when demand is real. Watch: DoD and IC language on AI platforms in the omnibus.
Impact
High
Skew
Two-sided
Base or bear
early Feb
2027
Estimated
Q4 FY26 results and FY27 guide
Closes the year the Street models at $8.1B. The guide against $12.1B is the real print. Watch: FY27 revenue midpoint versus $12.1B consensus.
Impact
Decisive
Skew
Two-sided
All three
mid 2027
2027
Estimated
AIP enterprise bootcamp cadence
Commercial land-and-expand is the bull path. Bootcamp conversion into multi-year ACVs is the tell. Watch: Named commercial logos and remaining performance obligations growth.
Impact
Medium
Skew
Positive
Bull
H1
2027
Estimated
Large US defence programme renewals
A handful of programmes still concentrate government revenue. Renewal language matters more than new logos. Watch: Any single programme slipping a fiscal year.
Impact
High
Skew
Two-sided
Base or bear
early May
2027
Estimated
Q1 FY27 results
First print against the FY27 base. Commercial mix is the scorecard. Watch: Commercial revenue share crossing and holding above 50%.
Impact
High
Skew
Two-sided
Bull or bear
mid 2027
2027
Estimated
Ontology / AIP agent product cycle
The software moat claim is that ontology + AIP makes switching expensive. Product proof shows up in deal size, not demos. Watch: Average deal size and net dollar retention commentary.
Impact
Medium
Skew
Positive
Bull
If You Only Watch One Thing
2 Nov · Q3 FY26

Commercial growth and Rule of 40 framing decide the multiple. Consensus wants ~$2.16B and $0.41 — but mix is the scorecard, not the top line alone.

Commercial share / growth Reads as Target
Comm >50%, Ro40 heldCrossing confirmed; bull path opens$230
Mix rising, growth intactBase intact; trust discount stays$185
US comm. <50% YoYDeceleration; bear becomes the base$95
Not On This Calendar
No date
Unscheduled events, any of which can move the shares further than the register above.
●A major DoD / IC programme renewal slips a fiscal year
●Export-control or defence-budget language that hits AIP deployments
●Hyperscaler + Databricks stack winning a named commercial logo
●SBC / dilution surprise that widens the trust discount
●Political scrutiny of government AI platform spend
TA
Ticker Alpha  ·  Palantir Technologies Inc.  ·  NASDAQ: PLTR
08 Risks & Signals

What Could Break This

Six risks ranked by what they would cost rather than how likely they are, each with the observable that tells you it is happening.

Risk Register
Severity is impact on our base target · likelihood is over 24 months
1
Multiple compression if growth slows
At 63.9× sales the multiple is the product. A growth miss rewrites the exit P/E faster than the income statement. Watch: US commercial YoY and Rule of 40 framing on the next print.
Severity
Likelihood
2
Commercial deceleration
Commercial is the re-rating engine. US commercial growth below 50% YoY turns the bull path off. Watch: commercial revenue share and named-logo commentary.
Severity
Likelihood
3
Government programme concentration
A handful of defence programmes still concentrate government revenue. A slip of one fiscal year rewrites bookings even when demand is real. Watch: Maven / Army renewal language and CR delays.
Severity
Likelihood
4
SBC dilution
SBC at 13.6% of sales keeps the discount of trust high. Persistent dilution without FCF per-share growth is a silent bear. Watch: SBC / revenue staying above 12%.
Severity
Likelihood
5
Hyperscaler + Databricks competition
Open stacks and SI incumbents compete for the same commercial cheque. Ontology switching costs only matter if deal size and NDR prove it. Watch: lost logos and average deal size commentary.
Severity
Likelihood
6
Political / export / defence budget risk
Government is still half the company. Appropriations, export rules and political scrutiny of AI platforms can delay bookings overnight. Watch: DoD / IC language in the omnibus and any export-control change.
Severity
Likelihood
Who Sold, And How Much
Form 4 filings, last twelve months
InsiderRoleFilingsValue
Peter ThielDirector7$290M
Alexander C. KarpCEO85$249M
Stephen A. CohenPresident70$198M
Shyam SankarCTO102$193M
All insiders11 people530~$1.03B
Net Insider Value By Month
−$300M−$150M0 ASONDJFMAMJJ
Reading The Signals
Evidence, not trivia
Disposals / open-market buys
Heavy / limited
Net insider value, 12m
~$1.03B
As share of market cap
~0.26%
Insiders in sample
11 people
Free float
95.5% · ~2.30B sh
Analyst ratings
13 buy · 10 hold · 3 sell

Read this as texture, not signal. Karp and early holders sell persistently; ~$1B is still only ~26 basis points of a $395B company. The strip shows selling into strength — consistent with liquidity after a long run, not proof the thesis is wrong.

Bullish, but trust-discounted. A base below the Street median is the point — not a soft rating.

Methodology & Limitations

How the targets are built

Each case sets revenue, margin and multiple independently, then values primarily on FY27–28E EPS at a twelve-month horizon. The headline is the base case.

Where the data comes from

Prices, consensus, targets and Form 4s from Financial Modeling Prep; fundamentals from Palantir SEC filings. Peer medians use the eleven-name set on page 4. Data as of 7 August 2026.

What this cannot do

Generated from structured data — it cannot interview management or price an untold event. Institutional ownership was unavailable and is omitted rather than estimated.

This report was generated on demand.

Every figure above comes from Palantir Technologies Inc.’s own filings and live market data, assembled and written up automatically. Ticker Alpha is building this for any listed company — so the research you need on a Tuesday afternoon takes a minute, not a week.

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