Palantir Technologies Inc. (PLTR) — Fundamental Analysis
Snapshot & Big Picture
Palantir Technologies is a data analytics and AI software company serving both government and commercial clients. Built around its flagship platforms — Gotham, Foundry, and the more recently prominent AIP (Artificial Intelligence Platform) — the business converts raw, complex data into operational intelligence. Palantir's revenue model is heavily software-driven, which explains its persistently high gross margins north of 80%. The company has been on a multi-year march from near-breakeven toward genuine, scaled profitability, and the numbers now make that arc impossible to ignore.
| Metric | FY 2023 | FY 2024 | FY 2025 |
|---|---|---|---|
| Revenue | $2.23B | $2.87B | $4.48B |
| Gross Margin | 80.6% | 80.2% | 82.4% |
| Operating Margin | 5.4% | 10.8% | 31.6% |
| Net Margin | 9.4% | 16.1% | 36.3% |
| EBITDA | $153.3M | $342.0M | $1.44B |
| Current Ratio | 5.55x | 5.96x | 7.11x |
| Debt-to-Equity | 0.28 | 0.25 | 0.19 |
Latest Quarter Snapshot (Q1 2026 — Most Current Data Available)
The most recent filing, a 10-Q for the quarter ended March 31, 2026, shows acceleration beyond the already strong FY 2025 full-year figures. This is the freshest picture of where the business actually stands today.
| Metric | Q1 2026 |
|---|---|
| Revenue | $1.63B |
| EBITDA | $760.8M |
| Gross Margin | 86.8% |
| Operating Margin | 46.2% |
| Net Margin | 53.3% |
| Current Ratio | 6.91x |
| Debt-to-Equity | 0.19x |
A single quarter of $1.63B in revenue, if annualized, puts Palantir on a roughly $6.5B revenue run rate — well ahead of its FY 2025 total of $4.48B. More striking is that a 53.3% net margin in a single quarter represents a dramatic leap from where the company was even twelve months prior. The gross margin of 86.8% is the highest in the dataset presented here, suggesting improved operating leverage and mix shift.
Profitability — Multi-Year Trend
The profitability story at Palantir is one of consistent, accelerating improvement across every major margin metric.
| Period | Gross Margin | Operating Margin | Net Margin | EBITDA |
|---|---|---|---|---|
| FY 2023 | 80.6% | 5.4% | 9.4% | $153.3M |
| FY 2024 | 80.2% | 10.8% | 16.1% | $342.0M |
| FY 2025 | 82.4% | 31.6% | 36.3% | $1.44B |
| Q1 2026 | 86.8% | 46.2% | 53.3% | $760.8M |
The operating margin jump from 10.8% in FY 2024 to 31.6% in FY 2025 — and then to 46.2% in Q1 2026 alone — is the clearest signal that Palantir has crossed an inflection point. EBITDA of $760.8M in a single quarter exceeds the entirety of FY 2024's EBITDA of $342M by more than double. This is classic operating leverage: revenue scaling faster than costs, with a software model that doesn't require proportional headcount growth to serve new contracts.
Financial Health
Palantir's balance sheet is a genuine strength. The current ratio has climbed from 5.55x at the end of FY 2023 to 7.11x at the end of FY 2025, and stands at 6.91x as of Q1 2026. A current ratio well above 1.0x means the company can comfortably cover its near-term obligations many times over — this is a cash-rich business with minimal liquidity risk.
The debt-to-equity ratio has steadily declined from 0.28 in FY 2023 to 0.19 by both FY 2025 year-end and Q1 2026. That is a very low leverage level for a technology firm of this scale, meaning Palantir is not dependent on debt financing to fund its growth. The combination of high liquidity and low leverage creates a financially resilient profile.
| Period | Current Ratio | Debt-to-Equity |
|---|---|---|
| FY 2023 | 5.55x | 0.28 |
| FY 2024 | 5.96x | 0.25 |
| FY 2025 | 7.11x | 0.19 |
| Q1 2026 | 6.91x | 0.19 |
Growth
Revenue growth has been strong and is clearly accelerating. From FY 2023 to FY 2024, revenue grew approximately 28.8% year-over-year. From FY 2024 to FY 2025, it grew approximately 56.2% — a significant step-up in pace. The Q1 2026 quarterly revenue of $1.63B, compared against the context of a $2.87B full-year FY 2024, illustrates just how quickly the top line is compounding.
| Period | Revenue | YoY Growth |
|---|---|---|
| FY 2023 | $2.23B | — |
| FY 2024 | $2.87B | ~28.8% |
| FY 2025 | $4.48B | ~56.2% |
| Q1 2026 (single quarter) | $1.63B | — |
The acceleration in FY 2025 likely reflects the commercial adoption of AIP and growing AI-related government contracts. The Q1 2026 figure suggests this trajectory has not moderated heading into the new fiscal year.
Plain English Summary
Palantir is no longer a company investors have to take on faith. The numbers now tell a clear story: revenue is growing fast and accelerating, margins are expanding sharply, the balance sheet carries very little debt and plenty of cash, and each successive reporting period shows the business converting more of each dollar of revenue into actual profit. Three years ago, Palantir's operating margin was just 5.4%. By Q1 2026, it had reached 46.2% — nearly half of every revenue dollar dropped to operating income. The company's software-heavy model means it can grow without a proportional rise in costs, and that dynamic is showing up vividly in the EBITDA figures: from $153M for all of FY 2023 to $761M in a single quarter of 2026. Financial health indicators — low debt, high liquidity — suggest the company is not stretching itself thin to achieve this growth. For an investor focused purely on fundamentals, the trajectory here is difficult to dismiss: Palantir has moved decisively from a high-promise, thin-margin business into one generating substantial, scaled profits.
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