---
title: "Palantir Technologies (PLTR) Financial Research Report"
author: "DeepValues Research"
publisher: "DeepValues Research (DeepValues / LuLu Ventures LLC)"
type: "Research article"
ticker: "PLTR"
company: "Palantir"
sector: "Technology"
industry: "Software - Infrastructure"
wikidata: "https://www.wikidata.org/wiki/Q2047336"
wikipedia: "https://en.wikipedia.org/wiki/Palantir"
date: "2026-02-19"
language: "en"
section: "Company Research"
answer: "DeepValues Research published “Palantir Technologies (PLTR) Financial Research Report” on Palantir (PLTR) on Feb 19, 2026. Palantir has successfully scaled its analytics business, delivering strong revenue growth, high margins and positive free cash flow while maintaining a cash‑rich, debt‑free balance sheet."
canonical_url: "https://research.deepvalues.ai/company/pltr/palantir-technologies-pltr-q3-2025/"
markdown_url: "https://research.deepvalues.ai/company/pltr/palantir-technologies-pltr-q3-2025/index.md"
license: "CC BY 4.0"
license_url: "https://creativecommons.org/licenses/by/4.0/"
cite_as: "DeepValues Research, Palantir Technologies (PLTR) Financial Research Report, https://research.deepvalues.ai/company/pltr/palantir-technologies-pltr-q3-2025/"
publisher_url: "https://deepvalues.ai"
app: "https://deepvalues.ai"
api: "https://app.deepvalues.ai/developers"
data_note: "Reports are dated snapshots. Current data via the DeepValues API: https://app.deepvalues.ai/developers"
disclaimer: "Educational research, not investment advice."
---
# **Palantir Technologies (PLTR) Financial Research Report**

**Disclaimer**: This content reflects the views of the author(s) as of the date indicated and is for educational and informational purposes only. It is not investment advice. Do your own due diligence with a licensed financial advisor before making any investment decisions.

## **Latest Quarter Earnings**

Palantir's Q3 2025 results set new records. Revenue was **$1.181 billion** (+63% YoY), with GAAP net income of **$476 million** (40% margin). U.S. commercial revenue doubled to **$397 million** and customer count reached **911** .

## **Background Research**

### **Business model**

-   **Platforms**: Gotham (government), Foundry (commercial) and AIP (AI). Revenue derives from software subscriptions and services.

-   **Revenue mix**: \~56% government; \~44% commercial, with U.S. commercial revenue surging 121% YoY in Q3 2025 .

-   **Customer base**: 911 customers as of Q3 2025, up 45% YoY ; U.S. commercial customers 530 (+65% YoY) .

-   **Moat**: proprietary analytics platforms, long government relationships, network effects and high switching costs.

### **Headwinds and risks**

-   **Short‑term**: macroeconomic slowdowns may dampen commercial IT spending; government budget cycles can delay contract awards.

-   **Long‑term**: ethical concerns over surveillance and AI use; regulatory changes around data privacy; geopolitical controversies (e.g., support for Israel) that may alienate customers; increasing competition from cloud giants and analytics start‑ups.

### **Cost structure**

Palantir's fixed costs include salaries for engineers and sales staff, research & development and infrastructure. Variable costs relate to cloud computing and service delivery. Marketing spend is modest compared with peers. The company's gross margin (\~80%) suggests high scalability; labour is the largest expense in operating costs.

### **Management**

-   **Executive team**: CEO and co‑founder **Alexander Karp**, president and co‑founder **Stephen Cohen**, CTO **Shyam Sankar** and CFO **David Glazer** have served since the early 2000s.

-   **Board**: chaired by co‑founder **Peter Thiel**, with directors Alexandra Schiff, Alexander Moore, Lauren Friedman Stat and Eric Woersching.

-   **Past performance**: management has achieved rapid revenue growth and turned the company profitable by 2023. CEO Karp is candid and sometimes controversial.

-   **Ownership & alignment**: insiders (including Peter Thiel and Alex Karp) hold roughly 7-8% of shares; they purchased shares at earlier rounds and still own significant stakes.

### **Top shareholders & voting**

Institutions hold about 51.8% of shares; general public 40.5%; insiders 7.49%. Major shareholders include Vanguard (8.67%), BlackRock (7.45%), Peter Thiel (4.23%), State Street (3.98%), CEO Alex Karp (2.41%). The 2025 annual meeting approved re‑election of directors and ratified Ernst & Young as auditor .

### **Share buyback plan**

In 2025 Palantir repurchased 2.6 million shares and retained **$880 million** of authorized capacity . It is the company's first significant buyback, reflecting confidence in cash generation.

### **Value investors' activity**

Few traditional value investors hold PLTR due to its high valuation. No widely reported large purchases from notable value funds were found.

## **Financial Research**

### **Key metrics history**

The table below summarizes selected metrics (in billions unless stated) from 2018-2024.

\| 2018 \| 0.595 \| -0.598 \| -0.046 \| 0.723 \| -0.077 \| \| \|

\| 2019 \| 0.743 \| -0.588 \| -0.178 \| 0.673 \| -0.240 \| 0.297 \| \|

\| 2020 \| 1.093 \| -1.166 \| -0.309 \| 0.677 \| -0.283 \| -0.766 \| 0 \|

\| 2021 \| 1.542 \| -0.520 \| 0.321 \| 0.780 \| 0.208 \| -0.227 \| 0 \|

\| 2022 \| 1.906 \| -0.374 \| 0.184 \| 0.785 \| 0.096 \| -0.142 \| 0 \|

\| 2023 \| 2.225 \| 0.210 \| 0.697 \| 0.806 \| 0.313 \| 0.059 \| 190.78 \|

\| 2024 \| 2.866 \| 0.462 \| 1.141 \| 0.803 \| 0.398 \| 0.091 \| 398.05 \|

### **Deep value investing test**

-   **Valuation discipline**: P/E of 398 and P/B of 34.7 far exceed deep value thresholds (≤15 and ≤1.5). PEG ratio > 13; therefore, Palantir does not meet valuation criteria.

-   **Cash generation & allocation**: Free cash flow has been positive since 2021 and FCF margin > 5%; pass. Return on retained earnings cannot be assessed due to limited data.

-   **Growth & predictability**: EPS record is negative before 2023; fails the 10‑year consistently rising EPS requirement. Book value per share rose but not at a 10% CAGR each year. Owner's earnings (approximated by FCF) are positive since 2021 but remain a small fraction of market cap.

-   **Balance‑sheet safety**: Debt‑to‑equity ratio 0.245 and interest coverage extremely high due to no debt; pass. Current ratio is high given large cash holdings (exact figure unavailable).

-   **Profitability & efficiency**: Gross margins (\~80%) exceed the 40% benchmark; net profit margin (\~16%) is below the 20% benchmark; ROE (\~9%) and ROA (\~7%) fall short of the 15%/6% standards. Depreciation vs gross profit not calculated.

### **Discounted cash flow analysis**

Using a discount rate of 10% and a base free cash flow of $1.14 billion, we estimated intrinsic values under four scenarios:

-   **No‑growth case**: per share intrinsic value ≈ $4.89; buy price with 30% margin of safety ≈ $3.42.

-   **Conservative case (5% growth)**: per share intrinsic value ≈ $7.74; buy price ≈ $5.42.

-   **Nominal case (20% growth)**: per share intrinsic value ≈ $25.33; buy price ≈ $17.73.

-   **Optimistic case (35% growth)**: per share intrinsic value ≈ $73.63; buy price ≈ $51.54.

These estimates are far below the current market price (\~$207 per share) , suggesting that even with aggressive growth assumptions Palantir appears overvalued.

## **Conclusion**

Palantir has successfully scaled its analytics business, delivering strong revenue growth, high margins and positive free cash flow while maintaining a cash‑rich, debt‑free balance sheet. Management is experienced and aligned through share ownership. Nevertheless, the company faces ethical and regulatory headwinds and relies heavily on government spending. For investors using deep value criteria, Palantir's valuation multiples far exceed acceptable levels, and DCF analyses yield intrinsic values well below the current market price. Growth‑oriented investors may see long‑term potential, but value investors should exercise caution and demand a substantial margin of safety.