PLTR

Palantir is firing on every fundamental cylinder. FY2025 revenue grew 56.2% to $4.48B — an acceleration over FY2024's ~29% pace — while net income more than tripled to $1.63B (+251.6%) and operating income jumped 355.5% to $1.41B, lifting operating margin to 31.6% on an 82.4% gross margin. It converts that to cash: $2.13B operating cash flow (+85%) against just $33.9M of capex, with no long-term debt and only 0.19x liabilities/equity and 22% ROE. The MD&A reinforces the trajectory: total remaining deal value reached $11.2B (+105%), split commercial $6.8B (+117%) and government $4.4B (+90%), with AIP cited as the growth engine. On quality alone this is one of the best franchises in software.

The catch is price. At $128.47 the stock trades at 203.9x FY diluted EPS of $0.63, and the implied price/sales (on ~2.6B diluted shares against $4.48B revenue) sits near 70-75x. Even crediting several more years of 40-50% growth and continued margin expansion, normalized software multiples leave little-to-negative margin of safety — the price already capitalizes near-flawless execution. I withhold a price target deliberately: any honest one requires forward-multiple assumptions the provided data doesn't supply, and inventing them would be dishonest.