Palantir Technologies shares are down 0.5% year-to-date, underperforming the Nasdaq Composite's roughly 14.4% gain, as a lofty valuation weighs on the stock despite accelerating revenue growth for its artificial intelligence platform. Revenue growth has accelerated every quarter since mid-2023, with the most recent period showing 93% year-over-year growth, driven by a focus on security and data protection that has become a key selling point. U.S. commercial revenue jumped 149% year over year, while government revenue grew 90%, and the company posted a 55% net profit margin, generating more than $3 billion in net income on about $6.2 billion in revenue over the last year. However, the stock trades at roughly 50 times estimated 2026 revenue and about 108 times forward earnings, and even if revenue and earnings doubled, it would still carry a sizable premium over most growth peers. Analysts project revenue could exceed $17 billion by 2029, up from $4.4 billion in 2025, but at a roughly $412 billion market cap, that is about 24 times those 2029 estimates, implying significant valuation risk if growth slows.
