Palantir builds software that connects an organization's data with decisions and everyday operations. Its Foundry platform gives businesses a shared view of data, while Gotham supports government and defense teams working with sensitive information. AIP adds language models to these workflows with controls over data access and the actions models perform. Customers pay for software subscriptions and implementation support under contracts that often cover multiple years, using cloud or on-premises deployments for tasks such as managing supply chains and planning missions. Founded in 2003 by Peter Thiel and other cofounders, Palantir is headquartered in Aventura, Florida.
Company Size
1,001-5,000
Company Stage
IPO
Headquarters
Aventura, Florida
Founded
2003
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Palantir Technologies shares rose approximately 60% in the third quarter, climbing from around $117 to $187. This marked the sixth time since September 2020 that the AI software company's stock gained 40% or more in a quarter. Following the previous five large quarterly gains, shares continued rising in four cases, with only one instance showing a slight decline. However, the sample size remains small and doesn't necessarily predict future performance. Palantir's revenue growth accelerated for three consecutive quarters, reaching 93% year-over-year growth in the second quarter of 2026, with revenue of approximately $1.9 billion. Net income tripled to about $1.06 billion. Despite strong growth, shares currently trade at roughly 165 times earnings, prompting valuation concerns amongst some analysts.
Goldman Sachs upgraded Palantir Technologies from "Neutral" to "Buy" with a £230 price target. The investment bank highlighted the company's impressive scale: £6.2 billion in revenue over the last 12 months, £8 billion in annual recurring revenue, and 100% annual revenue growth. Palantir's second quarter results exceeded expectations, with revenue jumping 92.8% year-over-year to £1.94 billion. US commercial revenue soared 149% to £764 million, driven by adoption of the company's Artificial Intelligence Platform. Goldman expects the firm to enter another phase of outperformance through 2027. The bank believes Palantir's forward-deployed engineering model and early development of AI agents provide competitive advantages over Microsoft, Salesforce and Snowflake. Shares have climbed 60% over three months but trade at elevated valuations of 122.72 times forward earnings.
Palantir Technologies trades at 139 times trailing free cash flow compared to ServiceNow's 31 times, but investors are paying the premium for faster AI-driven growth. Palantir's June-quarter revenue surged 93% to $1.94 billion, with GAAP operating income reaching $912 million, about 47% of revenue. ServiceNow's second-quarter subscription revenue rose 24.5% to $3.88 billion. Current remaining performance obligations increased 21% to $13.2 billion. Operating cash flow reached $587 million, with free cash flow at $473 million after property purchases. Institutional ownership data shows ServiceNow's holder count increased to 115 from 108 in Q1, whilst Palantir's fell to 86 from 96. Palantir had 60.18 million shares short on 15 September, approximately 2.8% of float. Both companies offer different enterprise automation approaches, with the valuation gap reflecting Palantir's exceptional growth trajectory.
Advanced Micro Devices and Palantir Technologies could surpass Broadcom's $1.7 trillion valuation within five years, according to investment analysis. AMD recently crossed $1 trillion in market value and would need roughly 70% growth over five years to match Broadcom. The company secured a deal with OpenAI covering 6 gigawatts of GPU capacity, expected to generate tens of billions of dollars in revenue. The first gigawatt of AMD's MI450 chips will roll out in the second half of 2026. Palantir, currently valued at $455 billion, represents a bolder bet requiring a fourfold increase. The company reported 93% revenue growth year-over-year last quarter, with US commercial revenue up 149%. It closed $2.1 billion in new US commercial contract value in one quarter, up 271% from the previous year.
Palantir CEO Alex Karp revealed that executive Ted Mabrey once told him to stop hyping the company's Foundry platform, saying it was "depressing" for employees who thought he was "out of touch". Karp shared the anecdote during a talk at Zeta Live '26 conference. Foundry, which centralises company data, now drives Palantir's fastest-growing business. In Q2, US commercial revenue grew 149% year-over-year to $764 million. The company raised its full-year guidance to over $3.4 billion. Karp discussed Palantir's early struggles raising capital, as investors wanted "parasitic" software that locked clients in. He said the company was mocked for its forward-deployed engineering model, which has since become popular in Silicon Valley. On AI, Karp warned that second-rate execution now creates binary outcomes for businesses, unlike past software rollouts.