Michael Burry Questions Palantir’s Valuation; Analysts Highlight Strong Financial Performance and Growth
Michael Burry has raised concerns about whether data analytics firm Palantir Technologies is appropriately valued as a high-margin software company, citing rising accounts receivable and low deferred revenue. However, the company reported $4.9 billion in remaining performance obligations at the end of June 2026 — noncancelable contracted revenue not yet recognized — suggesting strong future cash flow potential. Despite Burry's concerns about Palantir’s financials resembling a consulting firm rather than a software business, the company generated nearly $2.1 billion in operating cash flow during Q1 and Q2 2026. Its adjusted gross margin reached 86%, with an even higher adjusted operating margin of 62%. These figures contrast sharply with traditional consultancies like Accenture. Palantir’s commercial revenue grew by nearly $495 million year-over-year, driven largely by existing customers and a rising contribution margin to 74% in Q2. The company is also expanding its ecosystem through partnerships such as PwC and Fujitsu.
Tickers: $PLTR
Topics: Accounts Receivable AI Competition Deferred Revenue Palantir Technologies Valuation Concerns