Palantir's Revenue Growth Accelerates, AI Platform Becomes Key
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 days ago
0mins
Source: NASDAQ.COM
- Palantir Revenue Surge: Palantir achieved an impressive 85% revenue growth last quarter, marking its eleventh consecutive quarter of accelerating revenue, driven by a 42% increase in new U.S. commercial customers and a 150% rise in existing customer spending, highlighting strong market demand and customer retention in the AI sector.
- Microsoft Cloud Strength: Despite a 25% decline from its highs, Microsoft's Azure cloud division reported a 39% revenue increase last quarter, with Azure AI revenue soaring by 123%, indicating robust growth potential for its embedded enterprise solutions.
- AppLovin Platform Expansion: AppLovin's revenue jumped 59% last quarter, and with the launch of a new self-service platform aimed at attracting smaller advertisers, the company is poised to significantly expand its market opportunities, potentially driving its stock to new highs.
- Overall Market Recovery: With the Nasdaq index rallying strongly, investors have the chance to buy stocks like Palantir and AppLovin that are still below their historical highs, positioning themselves for potential gains in the upcoming market rebound.
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Analyst Views on PLTR
Wall Street analysts forecast PLTR stock price to rise
17 Analyst Rating
5 Buy
10 Hold
2 Sell
Hold
Current: 136.600
Low
50.00
Averages
192.88
High
255.00
Current: 136.600
Low
50.00
Averages
192.88
High
255.00
About PLTR
Palantir Technologies Inc. is engaged in building software to assist in counterterrorism investigations and operations. The Company has built four principal software platforms, including Palantir Gotham (Gotham), Palantir Foundry (Foundry), Palantir Apollo (Apollo), and Palantir Artificial Intelligence Platform (AIP). Apollo is a cloud-agnostic, single control layer that coordinates ongoing delivery of new features, security updates, and platform configurations, helping to ensure the continuous operation of critical systems. Gotham enables users to identify patterns hidden deep within datasets, ranging from signals intelligence sources to reports from confidential informants. Foundry transforms the ways organizations operate by creating a central operating system for their data. AIP enables responsible artificial intelligence (AI)-advantage across the enterprise by using primary, core components built to effectively activate large language models and other AI within any organization.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Palantir Reports Growth but Stock Declines
- Strong Financial Performance: Palantir reported accelerating U.S. commercial revenue growth, yet the stock price declined, indicating market concerns over valuation that could undermine investor confidence.
- Exceptional Margins: The company showcased superior margins in its earnings report, reflecting success in cost control and operational efficiency; however, the market's reaction did not align with this positive signal, potentially putting pressure on the stock in the short term.
- FAA Modernization Opportunity: Palantir's infrastructure modernization initiative is viewed as a potential long-term AI growth catalyst, and if successful, could open new growth avenues for the company, enhancing its competitive position in the market.
- Investor Sentiment Shift: Despite being recommended by The Motley Fool, Palantir did not make the list of top investment stocks, indicating a cautious market outlook on its future performance, which may affect shareholder expectations for long-term returns.
See More
Palantir's AI Platform Drives Revenue Growth
- Revenue Growth Outlook: Palantir anticipates a 120% revenue increase from U.S. commercial customers by 2026, indicating that the company is on a rapid growth trajectory amid surging demand for AI, further solidifying its market position.
- Outstanding Stock Performance: Since 2023, Palantir's stock has surged over 2,000%, providing substantial returns for investors and making it a focal point of discussion, reflecting strong market confidence in its future growth potential.
- Analyst Optimism: Among 30 Wall Street analysts surveyed by CNN Business, 60% rated Palantir as a buy, with some price targets suggesting an upside of up to 86%, demonstrating confidence in its valuation amidst ongoing debates.
- Enterprise Agentic AI Market Potential: According to Grand View Research, the Enterprise Agentic AI market is projected to grow at over 46% annually, reaching $24.5 billion by 2030, with Palantir's technology poised to be a key driver of this growth.
See More
Market Warning Amid AI Revolution
- Stock Price Volatility: Despite Nvidia and Palantir's shares skyrocketing approximately 1,400% and 2,040% in 2023, respectively, both stocks fell by $3.96 and $10.12 following their earnings release, resulting in a combined loss of $120 billion, indicating excessive market optimism regarding AI expectations.
- Nvidia's Strong Performance: Nvidia reported record first-quarter sales of $81.6 billion, with data center revenue soaring 92% year-over-year, and its GPUs remain the top choice for businesses, maintaining a gross margin around 75%, demonstrating robust pricing power despite competition.
- Palantir's Rapid Growth: Palantir's U.S. revenue more than doubled in the first quarter, prompting CEO Karp to raise the full-year sales growth forecast from 61% to 71%, showcasing a clear growth runway for its Gotham platform in the absence of large-scale competitors.
- Market Bubble Risks: While the long-term outlook for AI is bright, history shows that every disruptive technology has faced bubble bursts; currently, the AI-driven market shows signs of valuation fatigue, with the S&P 500's Shiller P/E ratio exceeding 42, suggesting potential market correction risks.
See More
Nvidia and Palantir Lead the AI Revolution
- Market Warning: Despite Nvidia and Palantir exceeding first-quarter expectations with $81.6 billion in sales and doubling U.S. revenue respectively, they collectively lost $120 billion in market value post-earnings, indicating that investor expectations for AI stocks may be overly optimistic.
- Nvidia's Strong Performance: Nvidia reported record first-quarter sales of $81.6 billion, with data center revenue soaring 92% year-over-year, and a gross margin of 75% demonstrates the company's robust pricing power in the GPU market despite competitive pressures.
- Palantir's Growth Potential: Palantir's AI-driven platforms, Gotham and Foundry, saw U.S. revenue more than double in the first quarter, prompting CEO Karp to raise the full-year sales growth forecast from 61% to 71%, highlighting its unique competitive edge in the market.
- Bubble Risk in AI Stocks: The historically high P/E ratios of AI stocks, with the S&P 500's Shiller P/E exceeding 42, suggest potential market correction risks, particularly for high-valuation companies like Nvidia and Palantir.
See More
Comparative Analysis of Palantir and BigBear.ai in the AI Market
- Palantir's Growth Potential: In 2025, Palantir's revenue reached nearly $4.5 billion, reflecting a robust 56.2% year-over-year growth, particularly as its top three customers accounted for 16% of total revenue, although this customer concentration poses risks.
- BigBear.ai's Financial Challenges: BigBear.ai reported revenue of approximately $127.7 million in 2025, a 19.3% decline from the previous year, resulting in a net loss of about $293.9 million, highlighting profitability concerns despite a solid backlog of orders.
- Competitive Risk Analysis: Palantir faces competition in the enterprise software market, with termination clauses in government contracts potentially impacting future revenue, while BigBear.ai relies on a small number of government clients, making it vulnerable to budget shifts.
- Valuation Comparison: Palantir's forward P/E ratio stands at 104x, significantly higher than BigBear.ai's 13.5x, indicating the market's higher growth expectations for Palantir, which, despite its expensive valuation, demonstrates competitive advantages through high margins and accelerating revenue growth.
See More
Palantir vs BigBear.ai: Contrasting Paths in AI Market
- Palantir Revenue Growth: In 2025, Palantir reported nearly $4.5 billion in revenue, reflecting a 56.2% year-over-year growth, showcasing its ability to scale software products across over 50 verticals, although customer concentration risk is evident with its top three clients accounting for 16% of total revenue.
- BigBear.ai Financial Challenges: BigBear.ai reported revenue of approximately $127.7 million in 2025, a 19.3% decline from the previous year, resulting in a net loss of about $293.9 million, highlighting profitability concerns despite a solid backlog of orders.
- Market Competition and Risks: Palantir faces competition from large system integrators, with termination clauses in government contracts posing revenue risks, while BigBear.ai relies heavily on a small group of government clients, making it vulnerable to shifts in federal budgets.
- Investment Outlook Comparison: While Palantir trades at a higher valuation reflecting growth expectations, its high profit margins and consistent revenue growth position it as a safer long-term investment compared to BigBear.ai, which must demonstrate its growth potential in the national security sector.
See More
Palantir Reports Growth but Stock Declines
- Strong Financial Performance: Palantir reported accelerating U.S. commercial revenue growth, yet the stock price declined, indicating market concerns over valuation that could undermine investor confidence.
- Exceptional Margins: The company showcased superior margins in its earnings report, reflecting success in cost control and operational efficiency; however, the market's reaction did not align with this positive signal, potentially putting pressure on the stock in the short term.
- FAA Modernization Opportunity: Palantir's infrastructure modernization initiative is viewed as a potential long-term AI growth catalyst, and if successful, could open new growth avenues for the company, enhancing its competitive position in the market.
- Investor Sentiment Shift: Despite being recommended by The Motley Fool, Palantir did not make the list of top investment stocks, indicating a cautious market outlook on its future performance, which may affect shareholder expectations for long-term returns.
See More
Palantir's AI Platform Drives Revenue Growth
- Revenue Growth Outlook: Palantir anticipates a 120% revenue increase from U.S. commercial customers by 2026, indicating that the company is on a rapid growth trajectory amid surging demand for AI, further solidifying its market position.
- Outstanding Stock Performance: Since 2023, Palantir's stock has surged over 2,000%, providing substantial returns for investors and making it a focal point of discussion, reflecting strong market confidence in its future growth potential.
- Analyst Optimism: Among 30 Wall Street analysts surveyed by CNN Business, 60% rated Palantir as a buy, with some price targets suggesting an upside of up to 86%, demonstrating confidence in its valuation amidst ongoing debates.
- Enterprise Agentic AI Market Potential: According to Grand View Research, the Enterprise Agentic AI market is projected to grow at over 46% annually, reaching $24.5 billion by 2030, with Palantir's technology poised to be a key driver of this growth.
See More
Market Warning Amid AI Revolution
- Stock Price Volatility: Despite Nvidia and Palantir's shares skyrocketing approximately 1,400% and 2,040% in 2023, respectively, both stocks fell by $3.96 and $10.12 following their earnings release, resulting in a combined loss of $120 billion, indicating excessive market optimism regarding AI expectations.
- Nvidia's Strong Performance: Nvidia reported record first-quarter sales of $81.6 billion, with data center revenue soaring 92% year-over-year, and its GPUs remain the top choice for businesses, maintaining a gross margin around 75%, demonstrating robust pricing power despite competition.
- Palantir's Rapid Growth: Palantir's U.S. revenue more than doubled in the first quarter, prompting CEO Karp to raise the full-year sales growth forecast from 61% to 71%, showcasing a clear growth runway for its Gotham platform in the absence of large-scale competitors.
- Market Bubble Risks: While the long-term outlook for AI is bright, history shows that every disruptive technology has faced bubble bursts; currently, the AI-driven market shows signs of valuation fatigue, with the S&P 500's Shiller P/E ratio exceeding 42, suggesting potential market correction risks.
See More
Nvidia and Palantir Lead the AI Revolution
- Market Warning: Despite Nvidia and Palantir exceeding first-quarter expectations with $81.6 billion in sales and doubling U.S. revenue respectively, they collectively lost $120 billion in market value post-earnings, indicating that investor expectations for AI stocks may be overly optimistic.
- Nvidia's Strong Performance: Nvidia reported record first-quarter sales of $81.6 billion, with data center revenue soaring 92% year-over-year, and a gross margin of 75% demonstrates the company's robust pricing power in the GPU market despite competitive pressures.
- Palantir's Growth Potential: Palantir's AI-driven platforms, Gotham and Foundry, saw U.S. revenue more than double in the first quarter, prompting CEO Karp to raise the full-year sales growth forecast from 61% to 71%, highlighting its unique competitive edge in the market.
- Bubble Risk in AI Stocks: The historically high P/E ratios of AI stocks, with the S&P 500's Shiller P/E exceeding 42, suggest potential market correction risks, particularly for high-valuation companies like Nvidia and Palantir.
See More
Comparative Analysis of Palantir and BigBear.ai in the AI Market
- Palantir's Growth Potential: In 2025, Palantir's revenue reached nearly $4.5 billion, reflecting a robust 56.2% year-over-year growth, particularly as its top three customers accounted for 16% of total revenue, although this customer concentration poses risks.
- BigBear.ai's Financial Challenges: BigBear.ai reported revenue of approximately $127.7 million in 2025, a 19.3% decline from the previous year, resulting in a net loss of about $293.9 million, highlighting profitability concerns despite a solid backlog of orders.
- Competitive Risk Analysis: Palantir faces competition in the enterprise software market, with termination clauses in government contracts potentially impacting future revenue, while BigBear.ai relies on a small number of government clients, making it vulnerable to budget shifts.
- Valuation Comparison: Palantir's forward P/E ratio stands at 104x, significantly higher than BigBear.ai's 13.5x, indicating the market's higher growth expectations for Palantir, which, despite its expensive valuation, demonstrates competitive advantages through high margins and accelerating revenue growth.
See More
Palantir vs BigBear.ai: Contrasting Paths in AI Market
- Palantir Revenue Growth: In 2025, Palantir reported nearly $4.5 billion in revenue, reflecting a 56.2% year-over-year growth, showcasing its ability to scale software products across over 50 verticals, although customer concentration risk is evident with its top three clients accounting for 16% of total revenue.
- BigBear.ai Financial Challenges: BigBear.ai reported revenue of approximately $127.7 million in 2025, a 19.3% decline from the previous year, resulting in a net loss of about $293.9 million, highlighting profitability concerns despite a solid backlog of orders.
- Market Competition and Risks: Palantir faces competition from large system integrators, with termination clauses in government contracts posing revenue risks, while BigBear.ai relies heavily on a small group of government clients, making it vulnerable to shifts in federal budgets.
- Investment Outlook Comparison: While Palantir trades at a higher valuation reflecting growth expectations, its high profit margins and consistent revenue growth position it as a safer long-term investment compared to BigBear.ai, which must demonstrate its growth potential in the national security sector.
See More
