You can beat earnings. You can post record margins. But if your stock trades at 90 times forward revenue, none of that matters unless you rewrite physics.
Palantir’s Q2 2025 earnings are set to land between $934 million and $938 million. That’s up 38% YoY. Operating income clocks in at $403 million, with adjusted margins near 44%. U.S. commercial revenue spiked 71%, adding $810 million in booked deals. Government contracts pulled $373 million, and the firm closed 139 deals over $1 million.
But when you’re priced like scripture, even miracles won’t move the needle.
Palantir’s market cap is pushing $373 billion. Forward P/S ratio sits at 90x. Forward P/E is 217x. By comparison, Salesforce trades at 6x revenue. Snowflake’s hovering near 19x. Even during peak 1999 mania, rarely did anyone hold 90x on a SaaS. The stock is priced for messianic growth, forever.
And that’s the trap. Palantir hit every Q1 target: $884 million revenue, $0.13 EPS. Shares dropped 12% the next morning. That wasn’t a miss, it was judgment. You don’t just beat, you have to levitate.
Executives have offloaded $2.54 billion in shares over the last 12 months. Only one insider purchased stock, totaling $1.16 million. That’s a 2,000-to-1 sell ratio. It doesn’t confirm a rug pull, but it doesn’t whisper confidence either.
Palantir’s AI edge is real. Its contracts are long. But when you’re trading at 90x forward revenue, even the water-to-wine moment gets discounted. And if the cross isn’t dodged, the market nails you to it.
https://www.usatoday.com/story/money/investing/2025/07/30/should-you-buy-palantir-stock/85416104007/