Is PLTR (Palantir Technologies Inc.) Halal or Haram?

Based on our AAOIFI-standard shariah screening, PLTR is classified as Doubtful. It passed 3 of 4 compliance screens. Some scholars may permit investing with income purification, while others advise avoiding it. We recommend consulting a qualified Islamic scholar before investing in PLTR.

Palantir Technologies Inc. is a specialized data analytics company best known for its software platforms, Gotham and Foundry, which integrate massive datasets for complex decision-making. Originally funded by the CIA's venture arm, Palant ir serves two distinct sectors: government agencies using Gotham for intelligence and defense operations, and commercial enterprises using Foundry to optimize supply chains and internal logistics. Their software is unique because it doesn't just store data but allows human analysts to identify hidden patterns across disconnected sources, from signal intelligence to confidential reports. For Muslim investors using HalalStocks.co.uk, Pal antir currently presents a compliance challenge, resulting in a 'Doubtful' status. While the core business of selling software is permissible, the company failed one of the critical financial ratios set by AAOIFI standards. Specifically, the interest income generated from its cash reserves accounts for 5.12% of its total revenue, which breaches the maximum allowable limit of 5%. This means that, despite passing the business activity and debt screens, the stock does not fully meet the strict criteria for sh ariah compliance at this time. Financially, Palantir is in a very strong position with almost zero leverage, showing a Debt-to-Market Cap ratio of only 0.1%, which is excellent for Islamic investors who prefer low-debt companies. However, this strength is ironically the source of its compliance issue; because they hold large cash reserves without significant debt, that idle cash earns interest, pushing them over the 5% income threshold. Investors strictly following AAOIFI standards would typically avoid this stock until their revenue grows enough to dilute that interest income percentage below the 5% mark. Investors should monitor Palantir's quarterly earnings closely. Since the interest income ratio is only marginally failing (5.1 2% vs the 5% limit), a strong quarter of increased software sales could easily dilute the interest portion and flip the status back to 'Compliant.' Until that happens, purification of dividends would not be sufficient to legitimize the investment for strict followers of the AAOIFI methodology. Palantir Technologies Inc. operates in the Technology sector under the Software - Infrastructure industry and is headquartered in Denver, CO, US. The company is led by CEO Alexander C. Karp and employs approximately 4,001 people.

PLTR was screened using AAOIFI-based shariah compliance criteria. Four tests are applied: (1) Business Activity — the company's core business must not derive primary income from haram (prohibited) activities such as alcohol, gambling, tobacco, or interest-based finance. (2) Debt-to-Market-Cap — total debt must not exceed 33% of market capitalization. (3) Interest Income — interest income must not exceed 5% of total revenue. (4) Cash & Securities — cash and interest-bearing securities must not exceed 33% of market cap. PLTR passed 3 of these 4 screens.

PLTR was last screened on 2026-02-25. Shariah compliance status can change as companies report new financial data, acquire new businesses, or shift revenue streams. We recommend checking back periodically for the most up-to-date screening results.