Palantir, a leading artificial intelligence software company, has experienced an astonishing surge of over 1,700% since its initial public offering (IPO) on the New York Stock Exchange in September 2020. The Denver-based firm, co-founded by renowned venture capitalist Peter Thiel and current CEO Alex Karp, has secured numerous government contracts with the U.S. Department of Defense, significantly contributing to its growth.
Government revenue has been a key driver for Palantir, accounting for 55% of total revenue in the latest quarter. The company’s U.S. government revenue grew 53% to $426 million last quarter, while commercial international revenues declined 3%. However, the U.S. still accounts for approximately three-quarters of total revenues.
Palantir’s valuation has broken new highs, surpassing some of the world’s technology behemoths with significantly lower revenues. The company’s market capitalization has rapidly ascended over the past year, driven by investors’ confidence in its AI tools.
The firm reported its first quarter with more than $1 billion in revenue, reaching new heights and soaring past a $430 billion market valuation. Retail investors have played a crucial role in Palantir’s growth, with retail pouring $1.2 billion into the stock last month alone.
CEO Alex Karp attributed the company’s success to its focus on giving American corporations and government an “unfair advantage.” Despite concerns about commercial international revenues’ growth trajectory, Palantir remains confident in its ability to expand globally.
As investors continue to bet on Palantir’s AI tools, the firm’s valuation has skyrocketed, with a forward price-to-earnings ratio of over 280 times. This places it among the top 10 U.S. tech firms and top 20 most valuable U.S. companies, despite generating significantly lower revenues than its peers.
Source: https://www.cnbc.com/2025/08/14/palantir-ai-charts-revenue.html