Palantir Shares Fall 23.5% YTD as Forward P/E Drops to 97x
Palantir reported Q4 2025 earnings that topped consensus for the 13th quarter, yet shares slid 7.3% last week and 23.5% year-to-date as its forward P/E narrowed from 140x to 97x while analysts forecast 78.7% growth. The stock trades at a 45x forward P/S ratio with 70% revenue growth.
1. Q4 2025 Earnings Beat
Palantir delivered fourth quarter 2025 results that exceeded consensus estimates for the thirteenth consecutive quarter, driven by continued strength in its AI Platform revenue and robust contract renewals.
2. Share Price Reaction
Despite the earnings beat, the stock fell 7.3% over the past week and is down 23.5% year-to-date as investors weighed valuation concerns against growth prospects.
3. Analyst Forecasts and P/E Movement
Analysts expect 78.7% earnings growth in 2026 following an 82.9% increase in 2025, while the forward price-to-earnings multiple contracted from roughly 140x to 97x.
4. Revenue Growth and P/S Valuation
The company achieved 70% year-over-year revenue growth, yet trades at a forward price-to-sales ratio of 45x, markedly higher than peers such as UiPath at 3.7x.