Palantir Technologies Inc. has shifted from a human-led service model to a product-led software company. A $10 billion, 10-year U.S. Army contract anchors PLTR's government revenue with long-term visibility, acting as a financial insurance policy against commercial cyclicality. Free cash flow margin stands at 46.94%, with gross margin at 82.37% and operating margin at 31.59%, highlighting robust profitability.
There are several headlines that are taking a backseat to more pressing geopolitical concerns. However, the announcement that Palantir Technologies NASDAQ: PLTR and NVIDIA NASDAQ: NVDA are teaming up to launch a sovereign artificial intelligence (AI) OS reference architecture needs more attention.
Palantir Technologies Inc.'s U.S. commercial momentum remained unphased, with revenue accelerating 16 points sequentially to 137% YoY, surpassing the $500 million mark in the quarter. PLTR also booked record TCV of $4.26 billion, up 138% YoY, with commercial TCV of $2.6 billion, up 161% YoY and 83% QoQ. For 2026, PLTR initially guided for fiscal 2026 revenue to accelerate from 56.1% to nearly 61% YoY, driven by US commercial revenue accelerating six points to >115% YoY.
Palantir's (NASDAQ: PLTR) situation since the start of 2026 has been somewhat contradictory, as it has been affected by the stagnation of the artificial intelligence (AI) sector, the software sell-off, and the military-industrial complex boom.
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Shares of Palantir (NASDAQ:PLTR | PLTR Price Prediction) are starting to look interesting again, with shares bouncing back in recent weeks amid the war in Iran.
Palantir is posting explosive top-line growth but trades at a wild valuation. Amazon's business is accelerating, fueled by cloud computing momentum.
Palantir's software platform is a better long-term business model. Nvidia is capitalizing on massive AI spending.
Thiel Macro (a hedge fund run by Peter Thiel) sold its positions in Tesla, Microsoft, and Apple in Q4 2025. Peter Thiel made a similar decision in Q4 2019 with mixed results; he avoided losses but missed out on gains.
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Palantir is hitting on all cylinders, but its stock is very pricey. ServiceNow is tightly ingrained in its customers' data and is seeing strong AI growth.
Both Micron and Palantir have seen their share prices soar. Micron's valuation is deceptively expensive, with its current price suggesting a very long earnings cycle.