Palantir Just Did This For The First Time Ever. Is The St…

Oleh Patinko • November 4, 2026

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Key Points

Palantir’s revenue is soaring, and the company lifted several full-year forecasts.
The software company has seen business and its stock price take off amid the AI boom.

Introducing customers to AIP

So, first, let’s talk a bit about Palantir’s business. The company has been around for more than 20 years, offering platforms that help customers leverage the power of their data. A few years ago, Palantir launched its Artificial Intelligence Platform (AIP), integrating large language models into its system. The company holds bootcamps to introduce customers to AIP, and through these sessions, they can go from zero to a use case in a matter of hours.

This has proven to be successful, as earnings have taken off at Palantir, and investors have piled into the stock to benefit.

PLTR Revenue (Quarterly) data by YCharts

The recent quarter represented another wave of growth for Palantir, with the company delivering a 96% increase in revenue to $2.3 billion and a Rule of 40 score of 158%. This metric measures a software company’s ability to balance growth with profitability, and a level of 40% is seen as good. So, at 158%, which represents the 13th straight quarterly gain, Palantir truly is winning.

The company, confident about the full year, raised its revenue forecast as well as forecasts for U.S. commercial revenue, adjusted income from operations, and adjusted free cash flow.

PLTR – Palantir Technologies

$175.40-$2.94 (-1.65%)

NASDAQ · As of 4:00 PM ET 11/03/26

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Moneyball Superscore89/100

Key data points

Market capMarket cap calculated using publicly traded s outstanding only. Does not include unlisted, private, or dual-class non-traded s. Implied market cap may vary.$421.50B

Day’s range$165.25 – $176.54

52wk range$106.37 – $212.94

Volume450.7K

Avg volume30.8M

Gross margin84.74%

Now, let’s consider the one thing in particular that Palantir did for the first time ever: Palantir’s U.S. commercial revenue surpassed its U.S. government revenue. They came in at $984 million and $953 million, respectively. And while the former advanced in the triple digits, the latter rose in the double digits.

Broadening the revenue stream

Though government revenue remains a core part of the Palantir story, this shows a clear shift into the commercial market. It’s significant because for most of the company’s history, it’s relied on government contracts for growth. Today, it has greatly broadened its revenue stream, and this increasing number of clients means less risk. Palantir had fewer than 20 U.S. commercial customers a few years ago, and now, that number has grown to more than 600.

I see this as a significant driver of growth moving forward as companies look for ways to apply AI quickly and easily — without having to start from scratch on their own.

Considering all of this, is Palantir a buy right now? It’s important to consider your investing strategy and comfort with risk before deciding. Cautious investors may not certain elements, such as Palantir’s valuation. Though it’s come down considerably from earlier levels, the stock is still expensive at more than 100x forward earnings estimates.

PLTR PE Ratio (Forward) data by YCharts

Some investors might also worry about slowing growth in new U.S. commercial contract value; the company closed $1.4 billion in the third quarter, representing 11% growth, while in the second quarter, this metric advanced 153% to $2.1 billion. That said, contract signings may not always translate into linear growth; growth could ebb and flow while still supporting solid earnings gains over time.

Palantir may not be the best investment for cautious investors. But considering the company’s track record of growth in recent years and the emergence of the commercial customer as a major growth driver, the stock makes a great buy for more aggressive investors who aim to hold on for the long run.

Adria Cimino is a contributing Motley Fool stock market analyst covering healthcare, technology, and consumer goods sectors. Prior to The Motley Fool, Adria covered the European stock market and U.S. stocks pre-market trading for Bloomberg News, Bloomberg TV, and Bloomberg Radio for more than a decade. Earlier in her career, she wrote about biotech, medtech, and technology companies in Boston for Mass High Tech, an American City Business Journals publication. She holds a bachelor’s degree in mass communications from the University of South Florida.

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