Palantir Technologies Inc. (PLTR) Revenue-to-Profit Sankey Flow & SEC XBRL Financials

Per the Roarable RQD rating, PLTR scores 72 out of 100, graded B, with the verdict "Roarable Buy — Good Risk/Reward." The five pillars are:

• Fundamental Cash Engine: 19 / 20. Per the RQD rating, this is supported by ROIC of 26.9% and an FCF yield of 0.76%. The strong return on capital is the highest-quality element of the score, while the thin FCF yield signals that the market price already embeds substantial expected growth. A prospective investor is paying a high multiple for cash generation.
• Whale 13F Flow: 17 / 20. Per the RQD rating, this reflects institutional accumulation and options positioning. Large 13F buyers in the holders section support this read, though the rating does not separate accumulation from hedging activity.
• Insider Conviction: 8 / 20. Per the RQD rating, this is the weakest pillar. The holders data shows open-market Form 4 sales by officers and directors alongside politician purchases, so insider signals are mixed rather than uniformly supportive.
• Macro Regime Fit: 15 / 20. Per the RQD rating, this reflects a Beta of 2.17 and sector sensitivity. A beta above 2 means the stock has historically moved with amplified magnitude relative to the broad market, which increases drawdown exposure in risk-off regimes.
• Forensic Balance Sheet: 13 / 20. Per the RQD rating, this reflects an Altman Z-Score of 17.06, a Piotroski F-Score of 8/9, and Debt/Equity of 0.5. These are strong readings, and the pillar sits below the top score largely because the rating weights balance-sheet strength less heavily than cash generation.

Taken together, the score frames PLTR as a high-quality operating business whose valuation is the central tradeoff. The upside case rests on sustained cash compounding and defense and enterprise AI demand, while the valuation (P/E TTM of 146.7 against a forward P/E of 83.7) leaves limited margin for error. Investors should weigh the high beta and mixed insider signals against the strong fundamental pillar.

Per the SEC financials, quarterly revenue rose in each reported period, from $1181.1M in Q3 2025 to $1935.5M in Q2 2026. Per the market data, gross margin is 84.8%, operating margin 42.8%, and net margin 49%, with ROIC at 26.9%. The Altman Z-Score is 17.06 and the Piotroski F-Score is 8/9, per the RQD rating. Debt is reported as N/A in each period, and Debt/Equity is 0.5 per the RQD rating; the balance-sheet posture is therefore characterized mainly by cash, which ranged from $1423.8M to $2291.6M across the reported periods.

• Proprietary Government Contract Signal (severity 96, BULLISH): Per the Butterfly graph, a live procurement record references a $637.6M Department of Defense award (Award W9128Z26FA001), with five prime federal task orders totaling $1.38B, described as 30.75% of trailing 12-month revenue of $4.48B. The signal notes federal obligations can post ahead of sell-side backlog revisions.
• Inverse Suit Signal (severity 86, BULLISH): Per the Butterfly graph, a Barclays UNDERPERFORM rating ($187 target) carries a 34.9% one-year accuracy score, while PLTR scores 19/20 on forensic fundamentals. The signal frames bottom-quartile analyst skepticism as a contrarian indicator.
• News wire: Per the recent catalysts section, headlines include a "Stock Surges 42% in 3 Months" report (marked as a catalyst), an earnings preview, and a "Valuation Looks Fully Priced" report on sovereign AI expansion. The valuation headline is a direct risk watch item.
• Risk watch items: Per the Butterfly graph, Continuing Resolutions can freeze new-start DoD obligations, and open-architecture mandates could let competing defense-tech primes access government data layers.

Per the Butterfly graph, Palantir sits between critical suppliers and customers:

• Upstream (suppliers): Amazon Web Services (AMZN, 42% exposure, classified cloud hosting) and Microsoft Azure Government (MSFT, 35% exposure, classified AI integration) are both rated CRITICAL. Dependence on two hyperscalers for classified hosting creates a concentration risk: a disruption at either provider would propagate directly into Palantir's delivery.
• Downstream (customers): Department of Defense exposure at 54% (CRITICAL) and commercial enterprise exposure at 32% (HIGH). The defense concentration ties PLTR's revenue to defense budgets and Continuing Resolution timing.
• Competitors: Microsoft Fabric/Azure AI Studio (46%, HIGH), Snowflake/Databricks (40%, HIGH), and Salesforce (22%, MODERATE). Microsoft appears as both a critical supplier and a competitor, a 2nd-order tension worth monitoring.
• Policy linkage (Lockheed Martin, LMT): Per the Butterfly link, the defense modernization theme connects PLTR to LMT through a policy dependency, with a TAILWIND direction tied to CJADC2 software budgets. The competing explanation is that open-architecture mandates could fragment software economics.

Watch for: FY DoD appropriations enactment, and Army TITAN and Maven task-order obligations on USASpending.gov.

• Consensus: Per the analyst data, 19 Buy, 8 Hold, and 1 Sell; 12 Strong Buy and 1 Strong Sell. The Street BS score is 80.
• Price targets: Low $186.67, high $231.96, mean $216.61, median $220.73; implied upside 17.65%.
• Recent analyst actions: Per the analyst data, Bernstein SocGen upgraded to Outperform (target $206.55), Evercore ISI reiterated Strong Buy (target $220.18), and J.P. Morgan revised its target to $226.44. Barclays holds an Underperform with a target of $186.67 and an F grade. Bank of America upgraded to Strong Buy with a $231.96 target.
• Insider Form 4 (SEC): Per the holders data, officer and director open-market sales include Woersching Eric H. (1,000 shares at $205), Stat Lauren Elaina Friedman (5,026 shares at $199, and 1,337 shares at $189.95), and Taylor Ryan D. (18,000 shares at $201.15).
• 13F whales: Per the holders data, Renaissance Technologies bought 4,850,000 shares at $188.75 and Duquesne Family Office bought 1,850,000 shares at $188.75.
• Congressional PTR: Per the holders data, Sen. Tommy Tuberville bought 5,500 shares at $209.05 and Rep. Mark Green bought 6,500 shares at $189.67.

• What is the company's revenue breakdown by product line (Gotham, Foundry, AIP) beyond the government and commercial exposure percentages?
• What is the reported debt figure, given that debt is listed as N/A in every period while the RQD rating cites a Debt/Equity of 0.5?
• What is the current status of the $637.6M DoD award relative to the sell-side backlog and any associated revenue recognition timing?
• How does the Q2 2026 cash balance of $2030.0M compare against the Q1 2026 figure of $2291.6M, and what drove the decline?
• What is the stock's valuation sensitivity under the Continuing Resolution scenario described in the Butterfly graph?