Palantir Technologies Inc. (PLTR) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: Palantir Technologies Inc.

Updated on October 23, 2026 · accounts published on August 3, 2026

Reading of October 22, 2026: A fast-growing software business with record margins and almost no debt

Palantir Technologies trades at a P/E of 166.3, 430 % above its sector median, while revenue grew 56 % over the last 12 months.

• Is Palantir Technologies expensive or cheap? Palantir Technologies trades at a P/E of 166.3 over the last 12 months, 430 % above its sector median of 31.4.
• How is the business doing? Operating margin reached 43 % over the last 12 months, against an average of −35 % in fiscal 2018-2025, as revenue grew 56 %.
• How strong is the balance sheet? Debt/equity is 0.02 over the last 12 months, and net cash came to $2.93 per share in fiscal 2025, just 1.5 % of the price.
• What to expect from the next earnings? Palantir Technologies reports on November 2, 2026; analysts expect EPS of $0.41, and it has beaten estimates 8 quarters running.
• Does it grow with real cash or by diluting shareholders? Free cash flow was 47 % of revenue in fiscal 2025, but stock-based pay took 15 %, above the 10 % healthy limit.

Is Palantir Technologies expensive or cheap?

Over the last 12 months Palantir Technologies trades at a P/E of 166.3. The median for its 358 sector peers is 31.4, so the premium is 430 %. Put another way, the earnings yield is 0.4 % and the free cash flow yield is 0.5 %, so today's price assumes many more years of strong growth. Its own history softens the picture a little: an EV/EBITDA of 145.0× is below 90 % of its three-year average of 235.0×, so the multiple has come down as profits rose. The stock is up 12 % over 12 months and sits 6 % below its 52-week high of $209.05.

How is the business doing?

Over the last 12 months revenue rose 56 % from a year earlier and EPS rose 232 %, so profits are growing much faster than sales. The operating margin of 43 % over the last 12 months compares with an average of −35 % across fiscal 2018-2025. Fiscal 2025's 32 % was already the best of those eight years. Return on invested capital of 25.6 % is 17.4 points above the sector median of 8.2 %. The caveat is how recent this is: ROIC topped 10 % in only one of the last eight fiscal years, and the worst was −69.3 % in 2018.

How strong is the balance sheet?

The balance sheet carries almost no debt. Debt/equity is 0.02 over the last 12 months and the current ratio is 7.23, so short-term assets cover short-term obligations more than seven times. In fiscal 2025 net debt was −0.7× EBITDA, well inside the 1.5× that software companies can tolerate. Net cash came to $2.93 per share ($3.03 of cash less $0.10 of debt), but that is only 1.5 % of the current price, so the cash pile barely supports the valuation. An Altman Z of 180.4 and a Piotroski score of 7 out of 9 point to low financial stress.

What to expect from the next earnings?

On August 3, 2026, Palantir Technologies reported EPS of $0.41 against $0.34 expected, a 19 % beat. That makes eight beats in the last eight quarters. For the quarter due on November 2, 2026, analysts expect EPS of $0.41, the same as last quarter's actual result. Over the last 30 days the 2026 EPS consensus barely moved, from $1.59 to $1.60 across 19 analysts, and revenue estimates were also steady. Of the 26 analysts covering the company, 13 rate it a buy, 10 a hold and 3 a sell. At a P/E of 166.3, simply matching estimates may not be enough to impress.

Does it grow with real cash or by diluting shareholders?

In technology, generic ratios miss what matters most: growth, pricing power and how much of the company goes to staff as shares. Revenue per share grew 27 % a year over fiscal 2022-2025, above the healthy mark of 15 %. Its Rule of 40 score in fiscal 2025 was 74, well above the elite level of 40. A gross margin of 82 % beats the 70 % software benchmark, and free cash flow equalled 47 % of revenue. The weak spot is dilution: stock-based pay reached 15 % of revenue in fiscal 2025. That is above the healthy 10 %, though still short of the toxic 20 %.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.