Palantir has officially entered the ranks of the top 10 U.S. technology companies by market cap, achieving a valuation of $281 billion. This marks a significant milestone as the data analytics software vendor surpassed Salesforce, which previously held the tenth spot with a market cap of $268 billion. Palantir’s rise comes after it overtook well-established tech giants like Cisco and IBM earlier this year. The company’s stock jumped about 8% on Thursday, continuing a dramatic surge that has seen its value more than quintuple over the past year. This increase includes a 58% jump in 2025, positioning Palantir to potentially be the top performer in the S&P 500 for the second consecutive year.
While the broader tech market has faced headwinds due to tariff uncertainty and economic slowdown fears, Palantir’s stock has been a standout. The Nasdaq is down 7% this year despite a recent bounce-back, but Palantir has maintained its momentum. The company’s strong performance has been fueled by its growing government business, which saw a 45% increase to $373 million last quarter. This includes a significant contract with the U.S. Army for $178 million to build artificial intelligence systems.
Founded in 2003 by a team that included Peter Thiel and CEO Alex Karp, Palantir’s defense business has drawn both praise and controversy. Karp defended the company’s commitment to working with the U.S. military, despite criticism from some Silicon Valley peers.
However, Palantir’s market cap may not fully reflect its financial standing. The company’s sales and profit are significantly smaller than those of Salesforce, which generated over ten times the revenue last year. Palantir’s stock is also heavily valued, with a trailing price-to-earnings ratio of 520, a forward P/E ratio nearly 200 times earnings, and a revenue multiple of 90 times. In comparison, other top tech companies have significantly lower multiples, with an average trailing P/E of around 58.
Despite some recent volatility, including a 12% drop in share price following its first-quarter results, Palantir remains optimistic about its future growth. Investors have expressed concerns over the company’s high valuation, but Palantir’s continued success in the government sector keeps its prospects strong.
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