Sushree Mohanty
4 min read
In This Article:
Palantir Technologies (PLTR) is poised to become this decade’s standout growth stock. While some admire its cutting-edge data analytics software, others dislike its complex business model and unconventional corporate culture.
However, nothing stands in the way of its explosive growth. What sets Palantir apart is its Artificial Intelligence Platform (AIP) that helps organizations (ranging from governments to corporations) make sense of massive amounts of data to make better, faster decisions.
Over the last few years, Palantir has combined strong revenue growth with disciplined cost control. Investors are increasingly taking notice of its shift from a government-heavy contractor to a scalable enterprise software player, a pivot that could unlock massive shareholder value.
The stock has returned a whopping 1,310% over the last three years. In fact, it is among the best-performing stocks this year, rising 82.4% year-to-date, wildly outperforming the overall market gain%. Let’s dig in and see if now is the time to buy this stock.
Palantir’s main software platforms include Gotham, which is used by defense and law enforcement agencies for counterterrorism, investigations, and operations. The Foundry platform is designed for commercial clients, allowing them to integrate data, create operational workflows, and deploy AI models at scale.
Palantir was long known as a government-focused company, particularly in defense and intelligence. And government contracts are still a key growth driver. In the most recent first quarter, total government revenue increased 45% year-on-year to $487 million, with U.S. government revenue contributing $373 million.
Management emphasized that Palantir’s delivery of the TITAN battlefield vehicle on time and within budget, an unprecedented achievement for a software-led defense prime, was hailed as a standout moment in the first quarter. The U.S. Army rated TITAN as a top-performing program, validating Palantir’s software-first approach to defense platforms. Additionally, Maven Smart System usage has doubled twice in less than a year, and NATO has adopted Maven as its C2 system. U.S. combatant commands are increasingly relying on Maven for intelligence automation, situational awareness, and battlefield decision-making, showing Palantir’s growing presence in allied defense infrastructure.
