What Could Light a Fire Under Palantir Technologies Stock
Palantir Technologies has experienced multiple explosive rallies, with over 50% gains in under two months seen in key years like 2020 and 2024. Additionally, the stock surged more than 30% several times during past upswings, notably in 2023 and 2024, rewarding shareholders with substantial gains. If past patterns hold, future catalysts could drive Palantir’s shares to remarkable new heights once again.
Triggers That Could Boost The Stock
- AI Commercial Surge: US commercial revenue surged 93% to $306M in Q2 2025, driven by AI platform adoption.
- Major Government Deals: Secured a $10B U.S. Army contract in July 2025, boosting government revenue 49% in Q2 2025.
- Consistent Profitability: Achieved GAAP operating income for multiple quarters, with $269M in Q2 2025, supporting future index inclusion.
Is holding PLTR stock risky? Of course it is. High Quality Portfolio mitigates that risk.
How Do Financials Look Right Now
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It certainly helps if the fundamentals check out. For details on PLTR Read Buy or Sell PLTR Stock. Below are a few numbers that matter.
- Revenue Growth: 38.8% LTM and 25.7% last 3-year average.
- Cash Generation: Nearly 49.7% free cash flow margin and 16.6% operating margin LTM.
- Valuation: Palantir Technologies stock trades at a P/E multiple of 586.2
- Opportunity vs S&P: Compared to S&P, you get higher valuation, higher revenue growth, and lower margins
| PLTR | S&P Median | |
|---|---|---|
| Sector | Information Technology | – |
| Industry | Application Software | – |
| PE Ratio | 586.2 | 24.1 |
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| LTM* Revenue Growth | 38.8% | 5.3% |
| 3Y Average Annual Revenue Growth | 25.7% | 5.3% |
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| LTM* Operating Margin | 16.6% | 18.7% |
| 3Y Average Operating Margin | 8.4% | 17.8% |
| LTM* Free Cash Flow Margin | 49.7% | 13.3% |
*LTM: Last Twelve Months
But How Does The Stock Do In Bad Times?
When sizing up risk, it’s worth looking at how PLTR has behaved in tough markets. During the Covid pandemic, it fell about 22.5% from peak to trough. The inflation shock hit harder, with a drop of roughly 85%. Even stocks that seem solid take a big hit when volatility spikes. So despite positive factors, PLTR’s history shows it can still face steep declines in a crisis.
But the risk is not limited to major market crashes. Stocks fall even when markets are good – think events like earnings, business updates, and outlook changes. Read PLTR Dip Buyer Analyses to see how the stock has recovered from sharp dips in the past.
The Trefis High Quality (HQ) Portfolio, with a collection of 30 stocks, has a track record of comfortably outperforming its benchmark that includes all 3 – the S&P 500, S&P mid-cap, and Russell 2000 indices. Why is that? As a group, HQ Portfolio stocks provided better returns with less risk versus the benchmark index; less of a roller-coaster ride, as evident in HQ Portfolio performance metrics.