Company Reports

Palantir posted another stellar quarter, with sales of $2.3 billion, up 96% year over year, driven by US commercial growth of 148% to $984 million, beating US government sales of $953 million for the first time. The firm also raised its 2026 sales outlook by nearly 500 basis points to $8.53 billion.

Palantir’s competitive advantage is its ontology framework, an integrated operating system built on a customer’s data, business logic, and actions to enable real-time, informed decision-making and analysis across business units. Data optimization challenges affect both government and private entities, and Palantir has found extraordinary success in addressing them. Access to its solutions is sold on subscription, with pricing that varies by customer, contract size, and market segment. Palantir’s sales cycles are led by hands-on workshops, or boot camps, that deliver a fast proof of concept, with participants often converting into paying customers. Initial contracts quickly expand as usage and customizations grow, lowering incremental cost to serve while increasing the customer’s switching costs.

Palantir's core differentiator is its ontology framework, which uses data to uncover hidden relationships and enable advanced decision-making. The broad scope should appeal to any business, government, or military in the Western world. While growth outside the US has been average, growth in the US has been extraordinary, accelerating sharply among both government and enterprise customers in recent quarters.

Palantir shares are up more than 10% after second-quarter results delivered record growth rates in US commercial revenue (150%) and US government revenue (90%), along with all-time highs in operating margins (62%), net retention (157%), and free cash flow margin (63%).

Palantir's core differentiator is its ontology framework, which uses data to uncover hidden relationships and enable advanced decision-making. The broad scope should appeal to any business, government, or military in the Western world. While growth in Europe has been average, growth in the United States has more than offset this geographic softness.

Palantir shares are down slightly after reporting first-quarter results, which we suspect is due to a slight miss on US commercial revenue relative to expectations (FactSet). Still, the rule of 40—the sum of revenue growth and operating margin—reached 145%, yet another all-time high.

Palantir is a leading AI company that enables optimized decision-making through its proprietary software. The company can aggregate, clean, and analyze the world's most complex datasets. It derives actionable insights beyond traditional analytics because it creates a closed read-write loop where it engages with all stakeholders and data sources in an organization for a dynamic understanding of any problem. Over time, Palantir's systems continuously improve, enabling automated, machine-learning-based solutions that drive efficiency gains across entities in any industry.

Palantir shares are up after fourth-quarter results exceeded management’s forecast across nearly all metrics, and it guided to 61% revenue growth in 2026, 15% above FactSet's consensus. The rule of 40—the sum of revenue growth and operating margin—reached 127%, an all-time high, in the quarter.

Palantir is a leading AI company that enables optimized decision-making through its proprietary platforms. The company can aggregate, clean, and analyze the world's most complex datasets. It derives actionable insights beyond traditional analytics because it creates a closed read-write loop where it engages with all stakeholders and data sources in an organization for a dynamic understanding of any problem. Over time, Palantir's systems continuously improve, enabling automated, machine-learning-based solutions that drive efficiency gains across entities in any industry.

Palantir is down slightly in after-hours trading after exceeding management’s forecast for nearly all publicized metrics. The rule of 40—the sum of revenue growth and operating margins—reached 114%, an all-time high. US commercial sales grew 121% year over year, up from 92% in the previous quarter.

Palantir is a leading AI company that enables optimized decision-making through its proprietary platforms. The company can aggregate and clean the world's most complex datasets. It derives actionable insights beyond traditional analytics because it creates a closed read-write loop where it engages with all stakeholders and data sources in an organization for a dynamic understanding of any problem. Over time, Palantir's systems continuously improve, enabling automated, machine-learning-based solutions that drive efficiency gains across entities in any industry.

Palantir is up 6% in after-hours trading—a small move given sky-high expectations—while posting its largest annual revenue growth in four years (up 48%). The Rule of 40, a summation of revenue growth and operating margins, reached an impressive 94%. US commercial grew 92% year over year.

Palantir is a leading AI company that enables optimized decision-making through its proprietary platforms. The company can aggregate and clean the world's most complex datasets. It derives actionable insights beyond traditional analytics because it creates a closed read-write loop where it engages with all stakeholders and data sources in an organization for a dynamic understanding of any problem. Over time, Palantir's systems continuously improve, enabling automated, machine-learning-based solutions that drive efficiency gains across entities in any industry.

Palantir shares are down 9% in after-hours trading despite the firm beating both management's guidance and FactSet analyst expectations on revenue by 3%. Contribution margins, an efficiency metric, reached an all-time high of 61%. Revenue growth was 39% and adjusted operating margin was 44%.

Palantir is a leading AI company that enables optimized decision-making through its proprietary platforms. The company can aggregate and clean the world's most complex datasets. It derives actionable insights beyond traditional analytics because it creates a closed read-write loop where it engages with all stakeholders and data sources in an organization for a dynamic understanding of any problem. Over time, Palantir's systems continuously improve, enabling automated, machine-learning-based solutions that drive efficiency gains across entities in any industry.

Palantir is a leading AI company that enables optimized decision-making through its proprietary platforms. The company can aggregate and clean the world's most complex datasets. It derives actionable insights beyond traditional analytics because it creates a closed read-write loop where it engages with all stakeholders and data sources in an organization for a dynamic understanding of any problem. Over time, Palantir's systems continuously improve, enabling automated, machine-learning-based solutions that drive efficiency gains across entities in any industry.

Palantir’s outstanding fourth-quarter results, rapid growth amid the artificial intelligence arms race, and strategic positioning in the AI-value chain further solidify our base case expectations that this company can be the next software juggernaut. As a result, we are raising our fair value estimate to $90 from $79.

We are transferring coverage of Palantir, maintaining a narrow moat rating and roughly quadrupling our fair value from $21 to $79. We view the company as fairly valued despite the premium it trades at relative to other software companies. We believe we are in the early phases of an artificial intelligence revolution, where downstream software companies like Palantir disproportionately stand to benefit.

Palantir is a leading AI company that enables optimized decision-making through its proprietary platforms. The company can aggregate and clean the world's most complex datasets. It derives actionable insights beyond traditional analytics because it creates a closed read-write loop where it engages with all stakeholders and data sources in an organization for a dynamic understanding of any problem. Over time, Palantir's systems continuously improve, enabling automated, machine-learning-based solutions that drive efficiency gains across entities in any industry.

We believe Palantir is well positioned for long-term success as a leader in artificial intelligence platforms. Its two main platforms, Gotham and Foundry, are well suited to help governments and commercial clients harness the power of data. Further, the company’s more recent AI Platform, or AIP, has also seen solid demand from both governmental and commercial clients. We believe that Palantir’s platforms stand to materially benefit as organizations seek to expand their use of data to inform business decisions. We expect this secular tailwind to allow the company to land more clients while also expanding revenue from existing ones.