Valuation Analysis of Palantir Stock
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Should l Buy PLTR?
Source: Fool
- High Market Valuation: Palantir's market cap stands at $350 billion with trailing revenue of only $4.5 billion, resulting in a revenue multiple of 78, indicating a premium valuation compared to peers; however, with a net cash position of $7 billion, the enterprise value adjusts to $343 billion, lowering the multiple to 77.
- Profitability and Growth: Despite a robust net margin of 36%, Palantir's earnings multiple exceeds 200, highlighting profitability constraints; while the stock has doubled over the past three years, revenue growth rates of 17%, 29%, and 56% suggest the stock may be overvalued relative to fundamentals.
- Future Growth Potential: Trading at 111 times forward earnings, Palantir's valuation remains high, yet its consistent outperformance against Wall Street forecasts prompts analysts to revise projections upward, indicating significant future growth potential.
- Business Model Transformation: Palantir's AI-driven automation solutions excel in government counterterrorism efforts, and its private sector business is rapidly expanding; with projected revenue growth of 62% in 2026, the company demonstrates a competitive edge in the evolving market landscape.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 145.970
Low
50.00
Averages
192.88
High
255.00
Current: 145.970
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Secures $300 Million Deal with USDA
- Major Contract Signing: Palantir has signed a $300 million purchase agreement with the U.S. Department of Agriculture aimed at modernizing agricultural service processes, simplifying farmers' assistance applications through the 'One Farmer, One File' initiative to enhance service efficiency.
- Technology Application Expansion: This agreement will enable Palantir to develop operational software solutions for the USDA, aimed at improving supply chain resilience, reducing fraud and waste, and enhancing the security of farmers and agricultural programs, further solidifying the partnership with the USDA.
- Historical Performance Review: Palantir achieved $4.5 billion in revenue in 2025, a 56% year-over-year increase, with U.S. commercial revenue growing by 109% and government revenue by 55%, reflecting strong demand for its technology and market applications.
- Future Outlook: Although the $300 million contract has limited financial impact, it illustrates the potential for expansion of Palantir's technology, with projected revenue growth of 60% to $7.2 billion in 2026, supporting the rationale for its high valuation.
See More
Nasdaq Soars 1.3% to Achieve New Intraday Peak; Arm Climbs 9%, Micron Hits Record High with 6% Surge, AMD Up Over 4%, and Broadcom, Oracle, and Palantir Each Rise Over 3%.
Nasdaq Performance: The Nasdaq rose by 1.3%, reaching a new intraday high.
Key Stock Movements: Arm jumped 9%, Micron surged 6% to a record high, and AMD gained over 4%.
Other Notable Increases: Companies like Broadcom, Oracle, and Palantir all saw increases of more than 3%.
Market Trends: The overall market shows positive momentum with significant gains in major tech stocks.
See More
USDA and Palantir Sign $300 Million Agreement to Enhance Farm Security
- Agreement Value: The $300 million Blanket Purchase Agreement signed between the USDA and Palantir aims to support the National Farm Security Action Plan, which is expected to significantly modernize agricultural services and enhance farmer service experiences.
- Software Support: Palantir will provide operational software to help the USDA improve service delivery for farmers and government field staff, ensuring efficiency and timeliness in agricultural services.
- Existing Platform Integration: This agreement will build on Palantir's existing collaboration with the USDA's 'Landmark' platform, further advancing the 'One Farmer, One File' initiative to enhance farmers' digital self-service tools for reporting acreage.
- Strategic Importance: USDA Chief Information Officer Sam Berry stated that protecting America's farmland is akin to protecting America itself, and this collaboration will provide the USDA with the necessary visibility and speed to safeguard the nation's food supply.
See More
Palantir Signs $300M Agreement with USDA for Digital Services
- Contract Value: Palantir has signed a $300 million blanket purchase agreement with the U.S. Department of Agriculture, aimed at supporting farm program operations and modernizing digital services for farmers, indicating strong growth potential in government contracts.
- Support for Security Plan: The agreement is tied to the USDA's National Farm Security Action Plan, which aims to improve fraud detection, strengthen supply-chain oversight, and deliver services across the Farm Production and Conservation mission areas, further solidifying Palantir's role in agricultural digital transformation.
- Streamlining Farmer Services: The contract will also support the USDA's “One Farmer, One File” initiative, designed to simplify access to agency programs, reduce paperwork, and expedite payments, including disaster assistance, thereby enhancing the service experience for farmers.
- Integration with Existing Platforms: Palantir's software is already utilized in the USDA's Landmark platform, which supports online enrollment and acreage reporting tools for farmers, and this agreement will further enhance its application in agricultural digital services, driving future growth for the company.
See More
Palantir Secures $300 Million Deal with USDA Amid Geopolitical Tensions
- Significant Agreement: Palantir has secured a $300 million contract with the U.S. Department of Agriculture to leverage its technology for farmland management, addressing geopolitical risks that threaten global supply chains, highlighting the company's growing importance in government projects.
- Farmer Pressures: U.S. farmers are grappling with rising supply costs and pressures from ongoing trade wars, particularly with China, which has impacted the soybean market and forced farmers to rethink production strategies, thereby affecting supply chain stability.
- Call for Policy Reform: A research note recommends that the USDA reform reporting requirements under the Agricultural Foreign Investment Disclosure Act to prevent adversarial countries like China from gaining strategic advantages through commercial land transactions, with Palantir's contract indicating a desire to utilize digital tools to address this issue.
- Company Background: Founded in 2003, Palantir aims to enhance U.S. defense capabilities, with CEO Alex Karp emphasizing the company's commitment to supporting U.S. warfighters; despite facing criticism for its collaboration with Immigration and Customs Enforcement, its AI platform has gained recognition in modern warfare applications.
See More
Palantir Secures $300 Million Deal with USDA for Farmland Management
- Collaboration with USDA: Palantir has secured a $300 million deal with the U.S. Department of Agriculture to utilize its software for farmland management, highlighting the company's growing role within the U.S. government beyond traditional defense contracts.
- Challenges for Farmers: U.S. farmers are facing rising supply costs due to the war in Iran and ongoing trade tensions with key partners like China, forcing them to rethink production strategies and putting supply chains at risk.
- Geopolitical Implications: The agreement aims to address concerns over China's recent purchases of U.S. farmland, with the USDA looking to leverage Palantir's digital tools to mitigate potential national security risks.
- Company Development Dynamics: Since its founding in 2003, Palantir has focused on enhancing U.S. defense capabilities, and despite facing criticism for its work with ICE and DHS, its AI-powered Maven Smart System platform has gained recognition for its role in modern warfare.
See More
Palantir Secures $300 Million Deal with USDA
- Major Contract Signing: Palantir has signed a $300 million purchase agreement with the U.S. Department of Agriculture aimed at modernizing agricultural service processes, simplifying farmers' assistance applications through the 'One Farmer, One File' initiative to enhance service efficiency.
- Technology Application Expansion: This agreement will enable Palantir to develop operational software solutions for the USDA, aimed at improving supply chain resilience, reducing fraud and waste, and enhancing the security of farmers and agricultural programs, further solidifying the partnership with the USDA.
- Historical Performance Review: Palantir achieved $4.5 billion in revenue in 2025, a 56% year-over-year increase, with U.S. commercial revenue growing by 109% and government revenue by 55%, reflecting strong demand for its technology and market applications.
- Future Outlook: Although the $300 million contract has limited financial impact, it illustrates the potential for expansion of Palantir's technology, with projected revenue growth of 60% to $7.2 billion in 2026, supporting the rationale for its high valuation.
See More
Nasdaq Soars 1.3% to Achieve New Intraday Peak; Arm Climbs 9%, Micron Hits Record High with 6% Surge, AMD Up Over 4%, and Broadcom, Oracle, and Palantir Each Rise Over 3%.
Nasdaq Performance: The Nasdaq rose by 1.3%, reaching a new intraday high.
Key Stock Movements: Arm jumped 9%, Micron surged 6% to a record high, and AMD gained over 4%.
Other Notable Increases: Companies like Broadcom, Oracle, and Palantir all saw increases of more than 3%.
Market Trends: The overall market shows positive momentum with significant gains in major tech stocks.
See More
USDA and Palantir Sign $300 Million Agreement to Enhance Farm Security
- Agreement Value: The $300 million Blanket Purchase Agreement signed between the USDA and Palantir aims to support the National Farm Security Action Plan, which is expected to significantly modernize agricultural services and enhance farmer service experiences.
- Software Support: Palantir will provide operational software to help the USDA improve service delivery for farmers and government field staff, ensuring efficiency and timeliness in agricultural services.
- Existing Platform Integration: This agreement will build on Palantir's existing collaboration with the USDA's 'Landmark' platform, further advancing the 'One Farmer, One File' initiative to enhance farmers' digital self-service tools for reporting acreage.
- Strategic Importance: USDA Chief Information Officer Sam Berry stated that protecting America's farmland is akin to protecting America itself, and this collaboration will provide the USDA with the necessary visibility and speed to safeguard the nation's food supply.
See More
Palantir Signs $300M Agreement with USDA for Digital Services
- Contract Value: Palantir has signed a $300 million blanket purchase agreement with the U.S. Department of Agriculture, aimed at supporting farm program operations and modernizing digital services for farmers, indicating strong growth potential in government contracts.
- Support for Security Plan: The agreement is tied to the USDA's National Farm Security Action Plan, which aims to improve fraud detection, strengthen supply-chain oversight, and deliver services across the Farm Production and Conservation mission areas, further solidifying Palantir's role in agricultural digital transformation.
- Streamlining Farmer Services: The contract will also support the USDA's “One Farmer, One File” initiative, designed to simplify access to agency programs, reduce paperwork, and expedite payments, including disaster assistance, thereby enhancing the service experience for farmers.
- Integration with Existing Platforms: Palantir's software is already utilized in the USDA's Landmark platform, which supports online enrollment and acreage reporting tools for farmers, and this agreement will further enhance its application in agricultural digital services, driving future growth for the company.
See More
Palantir Secures $300 Million Deal with USDA Amid Geopolitical Tensions
- Significant Agreement: Palantir has secured a $300 million contract with the U.S. Department of Agriculture to leverage its technology for farmland management, addressing geopolitical risks that threaten global supply chains, highlighting the company's growing importance in government projects.
- Farmer Pressures: U.S. farmers are grappling with rising supply costs and pressures from ongoing trade wars, particularly with China, which has impacted the soybean market and forced farmers to rethink production strategies, thereby affecting supply chain stability.
- Call for Policy Reform: A research note recommends that the USDA reform reporting requirements under the Agricultural Foreign Investment Disclosure Act to prevent adversarial countries like China from gaining strategic advantages through commercial land transactions, with Palantir's contract indicating a desire to utilize digital tools to address this issue.
- Company Background: Founded in 2003, Palantir aims to enhance U.S. defense capabilities, with CEO Alex Karp emphasizing the company's commitment to supporting U.S. warfighters; despite facing criticism for its collaboration with Immigration and Customs Enforcement, its AI platform has gained recognition in modern warfare applications.
See More
Palantir Secures $300 Million Deal with USDA for Farmland Management
- Collaboration with USDA: Palantir has secured a $300 million deal with the U.S. Department of Agriculture to utilize its software for farmland management, highlighting the company's growing role within the U.S. government beyond traditional defense contracts.
- Challenges for Farmers: U.S. farmers are facing rising supply costs due to the war in Iran and ongoing trade tensions with key partners like China, forcing them to rethink production strategies and putting supply chains at risk.
- Geopolitical Implications: The agreement aims to address concerns over China's recent purchases of U.S. farmland, with the USDA looking to leverage Palantir's digital tools to mitigate potential national security risks.
- Company Development Dynamics: Since its founding in 2003, Palantir has focused on enhancing U.S. defense capabilities, and despite facing criticism for its work with ICE and DHS, its AI-powered Maven Smart System platform has gained recognition for its role in modern warfare.
See More
