Will Palantir Technologies Ever Pay A Dividend?

Revealed on June thirtieth, 2025 by Bob Ciura

Palantir Applied sciences (PLTR) is without doubt one of the market’s premier development shares. In simply the previous three years, Palantir inventory has produced returns of greater than 1,200%.

As the corporate’s income development has exploded and it has turn into worthwhile, it’s pure for traders to surprise if a dividend cost is likely to be on the horizon.

Whether or not an organization pays a dividend will depend on many components. Hundreds of publicly-traded firms pay dividends to shareholders, and a few have maintained lengthy histories of elevating their dividends yearly.

For instance, the Dividend Aristocrats are a choose group of 69 shares within the S&P 500 which have raised their dividends for 25+ years in a row.

You’ll be able to obtain an Excel spreadsheet of all Dividend Aristocrats (with metrics that matter, similar to price-to-earnings ratios and dividend yields) by clicking the hyperlink beneath:

Disclaimer: Certain Dividend isn’t affiliated with S&P World in any means. S&P World owns and maintains The Dividend Aristocrats Index. The knowledge on this article and downloadable spreadsheet relies on Certain Dividend’s personal evaluate, abstract, and evaluation of the S&P 500 Dividend Aristocrats ETF (NOBL) and different sources, and is supposed to assist particular person traders higher perceive this ETF and the index upon which it’s based mostly. Not one of the info on this article or spreadsheet is official knowledge from S&P World. Seek the advice of S&P World for official info.

Alternatively, different firms don’t pay a dividend proper now and may not for a really very long time (or ever).

Buyers within the firm might need to know if Palantir will ever pay a dividend to shareholders. This text will try to reply that query.

Enterprise Overview

Palantir had its preliminary public providing on September 30, 2020. The inventory opened up at $10 earlier than ending the day at $9.50. Nonetheless, the inventory has carried out fairly nicely up to now 5 years, and now trades above $130 per share.

At present, Palantir has a market capitalization above $300 billion, making it a mega-cap inventory.

Palantir was based in 2003, partly by well-known enterprise capitalist Peter Thiel. Thiel has been the brains, cash or each behind among the know-how sectors most profitable endeavors, together with Meta Manufacturers (META) and PayPal (PYPL).

Palantir is without doubt one of the main suppliers of software program platforms for the intelligence neighborhood. The corporate has 4 principal platforms.

The Palantir Gotham platform can establish patterns hidden in datasets, which vary from indicators intelligence sources to reviews with confidential informants. Gotham is utilized by counter-terrorism analysts throughout the U.S. Intelligence Group and U.S. Division of Protection.

Palantir Foundry creates a central working system for a corporation’s knowledge which permits customers to combine and analyze knowledge wanted in a single centrally positioned place.

AIP permits prospects to automate nearly all areas of their companies. Its Workflow Builder can assemble AI apps, actions, and brokers.

Lastly, Apollo homes software program deployment instruments. Options embrace SaaS, safety, compliance, and extra.

Development Prospects

The corporate’s platforms can be utilized to handle all kinds of industries, starting from protection to well being care to meals to power. This doesn’t restrict Palantir means to draw prospects to just some areas of the financial system.

With a deep pool of potential prospects, Palantir isn’t any area of interest enterprise.

The necessity for companies and organizations to have the ability to safely safe its knowledge in a central location can also be a necessity and Palantir is ready to scale their platform to fulfill their wants.

Palantir has translated these development prospects into outcomes.

On Might fifth, the corporate reported first-quarter monetary outcomes. For the quarter, income of $883.85 million beat analyst expectations by $21.72 million. Adjusted earnings-per-share of $0.13 was in-line with estimates.

U.S. income elevated 55% year-over-year, together with 71% year-over-year development in U.S. industrial income.

Supply: Investor Presentation

The corporate has additionally been busy profitable new enterprise since going public. Palantir closed on 139 offers within the first quarter price not less than $1 million, 51 of which had been price not less than $5 million.

Palantir can also be starting to search out extra of a world presence. The corporate can proceed to develop its enterprise by increasing its space of operations.

Aggressive Benefits

Palantir has a number of benefits that units it aside from the competitors. First, Palantir’s subtle platform will help firms optimize their enterprise and discover methods to take away prices from the system. This will help enhance working efficiency whereas lowering bills.

The corporate’s merchandise are additionally in excessive demand amongst navy prospects. Whereas considerably controversial amongst sure traders, the corporate’s platforms have been confirmed to work in these areas which makes them a well-liked alternative amongst the intelligence and protection communities.

As soon as belief has been gained, there might be switching prices related to these businesses selecting one other vendor.

Palantir additionally has the good thing about rising prospects whereas additionally lowering in reliance on just some prospects.

Supply: Investor Presentation

Palantir generated GAAP web revenue of $214 million together with GAAP earnings-per-share of $0.08, which means the corporate has reached profitability.

The corporate additionally raised steering, now anticipating 2025 income of $3.89 billion to $3.902 billion. Palantir additionally expects free money circulate of $1.6 billion to $1.8 billion.

In the meantime, the corporate has the benefit of serious money reserves. As of the top of its most up-to-date quarter, Palantir had a complete of $5.43 billion of money and money equivalents, and marketable securities on its steadiness sheet.

Present belongings whole $6.28 billion, in contrast with present liabilities of $976.4 million, indicating very sturdy liquidity. Only a few younger public firms have such an unlimited sum of liquid belongings out there, with out important long-term debt.

Such a robust steadiness sheet will increase the prospect that the corporate might pay a dividend sooner or later.

Lastly, Palantir remains to be run by the identical management as when the corporate was based. Thiel stays chairman and his handpicked CEO Alex Karp has been in place since 2004.

Will Palantir Ever Pay A Dividend?

Palantir is a uncommon firm that has proven sturdy income and earnings development since its IPO, together with an abundance of money on its steadiness sheet.

Corporations seeking to pay a dividend should be worthwhile with sturdy steadiness sheets with the intention to distribute a dividend.

On the floor, Palantir meets these necessities, which means it might theoretically pay a dividend. Nonetheless, there are different issues for firms nonetheless of their development stage, similar to Palantir.

Primarily, development firms have to reinvest money circulate again into their companies, to remain on the expansion observe. Certainly, Palantir continues to speculate the overwhelming majority of its proceeds again into the enterprise.

Working bills rose 22% within the first quarter, year-over-year. This was as a result of firm rising its gross sales and market, analysis and growth and normal and administrative budgets to a extra cheap degree for a rising and increasing firm.

With excessive bills comes a low degree of income, which impacts any attainable dividend need Palantir might have. Regardless that the corporate was worthwhile in its first quarter, Palantir is just anticipated to earn $0.37 per share this 12 months.

Earnings-per-share are anticipated to develop by 16% subsequent 12 months to $0.43. This leaves comparatively little room to pay a dividend.

For instance, ff the corporate needed to allocate half of subsequent 12 months’s earnings-per-share to a dividend, then shareholders would possibly obtain a quarterly dividend of roughly $0.05. This equates to a yield of simply 0.1% on the present value, which probably wouldn’t have a lot attraction for revenue traders.

On the similar time, traders aren’t flocking to Palantir due to its means to throw off revenue. The younger firm is already worthwhile and seeing an unbelievable development price. Any use of capital to pay a paltry dividend could be capital that couldn’t be spent elsewhere.

Palantir is significantly better off preserving capital to reinvest in its enterprise. The money on the steadiness sheet can at all times be used to make an acquisition or assist develop the enterprise in another means.

Subsequently, we consider it might be not less than 5 to 10 years earlier than Palantir is able the place initiating a dividend is smart.

Closing Ideas

After a sluggish begin, there is no such thing as a doubting Palantir has been a wonderful funding following its IPO. The inventory has rocketed larger in simply the previous few years, producing a lifetime of returns in a comparatively brief time.

The corporate produced GAAP income in its first quarter and confirmed that income development stays very excessive. Palantir additionally has numerous development in entrance of it and has a number of aggressive benefits that ought to propel it larger.

Buyers on the lookout for a development inventory, and don’t thoughts the controversies concerning the corporate’s platforms, might do nicely proudly owning shares of Palantir. What they probably received’t see is a dividend anytime quickly.

For shareholders of Palantir, they’re most likely extra excited in regards to the whole return potentialities than a small dividend.