Palantir has shown strong revenue growth, with Q1 2025 revenue increasing by 39% year-over-year. The U.S. commercial sector has been a key driver, growing by 71%. This growth is supported by the increasing adoption of Palantir's AI Platform (AIP) and its ability to secure large contracts. However, the company's international commercial revenue declined, indicating a potential area of weakness. Given the strong revenue growth and a clear path to profitability, a score of 8 is warranted.

Palantir is well-positioned to benefit from long-term trends in AI, government digital transformation, and industrial modernization. The company's partnerships with Accenture Federal Services and Tomorrow.io, along with its FedStart program, enhance its growth prospects. However, the company's high valuation and dependence on government contracts pose risks to its growth trajectory. Considering the strong growth prospects and potential risks, a score of 7 is appropriate.

Palantir's valuation is a major concern, with a forward P/E ratio of 154.21 and an EV / Sales (FWD) of 52.22, significantly higher than sector medians. While the company has a clear path to profitability, its high valuation demands exceptional execution and sustained growth to justify its current price. Given the high valuation and the need for flawless execution, a score of 3 is justified.

Palantir faces several risks, including its reliance on government contracts, potential competition from other AI and software companies, and the impact of macro factors such as tariffs and geopolitical tensions. The company's high valuation also makes it vulnerable to market corrections. Considering these risks, a score of 5 is appropriate.

Palantir has demonstrated industry-leading innovation with its AIP strategy and its ability to introduce new valuable use cases to customers. The company's partnerships with Accenture Federal, Tomorrow.io, and The Nuclear Company highlight its commitment to innovation and its ability to expand its product pipeline. Given its strong innovation and promising pipeline, a score of 8 is warranted.

Palantir has a strong competitive position in the AI and data analytics market, particularly in the government sector. The company's partnerships with Accenture Federal and Tomorrow.io, along with its FedStart program, enhance its competitive advantages. However, the company faces competition from larger tech companies such as Microsoft and Amazon. Considering its strong competitive advantages and potential threats, a score of 7 is appropriate.

Palantir's business is sensitive to macro factors such as tariffs and geopolitical tensions. The Trump administration's trade policies and the ongoing conflict in the Middle East could impact the company's revenue and profitability. Given its high macro sensitivity, a score of 4 is justified.

Palantir operates in a large and growing TAM, with significant opportunities in both the government and commercial sectors. The company's partnerships with Accenture Federal and Tomorrow.io, along with its FedStart program, expand its market reach. However, the size of the opportunity depends on how advanced and in-depth the Golden Dome program will be. Considering the significant market opportunity and the uncertainties, a score of 6 is appropriate.

Palantir faces geopolitical risks due to its involvement in sensitive government projects and its partnerships with the U.S. military. The company's governance structure, with significant voting power held by the founder, also presents potential risks. Given these risk exposures, a score of 5 is justified.