Palantir Defies Skeptics with AI-Powered Growth and $490B Valuation

On November 4th, 2025, Palantir Technologies Inc. reported quarterly results that exceeded analysts' expectations and issued optimistic guidance for the fourth quarter. The company, which provides data analytics tools for large enterprises and government agencies, attributed much of its recent success to the power of artificial intelligence.

Palantir's revenue in the third quarter jumped 63% from the same period a year ago, surpassing $1 billion for the second consecutive quarter. The company's government business, which includes contracts with military and other agencies, grew 52% year-over-year to $486 million. Palantir also saw strong growth in its commercial segment, with revenue more than doubling to $397 million.

Looking ahead, Palantir expects to generate around $1.33 billion in revenue during the current quarter, outpacing the $1.19 billion forecast by analysts. For the full year, the company now anticipates approximately $4.4 billion in sales, topping the $4.17 billion projected by Wall Street.

Palantir's impressive performance has not gone unnoticed. The company's stock has surged more than 170% so far this year, propelling its market capitalization past the $490 billion mark and cementing its status as one of the most valuable technology companies in the world. This meteoric rise has been driven in part by a growing base of retail investors, who have helped Palantir achieve "rates of return previously limited to the most successful venture capitalists."

However, Palantir's success has also drawn criticism, particularly over how its tools are being used by government agencies, including U.S. Immigration and Customs Enforcement. In a letter to shareholders, CEO Alex Karp addressed the "detractors" who have been "left in a kind of deranged and self-destructive befuddlement," arguing that Palantir has "made it possible for retail investors to achieve rates of return previously limited to the most successful venture capitalists."