Palantir has achieved a significant milestone in its rapid stock surge, now ranking among the 20 most valuable companies in the United States. The data analytics and software firm, which primarily serves defense and government agencies, saw its shares climb over 2% on Friday to a new record high. This pushed its market capitalization to approximately $375 billion, surpassing major corporations like Home Depot and Procter & Gamble, and already ahead of Bank of America and Coca-Cola.
This year, Palantir’s value has more than doubled as investors grow increasingly optimistic about the company’s expanding artificial intelligence business and deepening relationships with the U.S. government. Founded in 2003 by Peter Thiel, Alex Karp, and others, Palantir has gradually built a broad client base, with government contracts forming a major part of its business. In its latest quarter, revenue from its U.S. government segment rose 45% to $373 million, contributing to a total revenue increase of 39% to $884 million. The company is set to report its next earnings on August 4.
Earlier in 2025, Palantir climbed past established tech giants such as Salesforce, IBM, and Cisco to enter the top 10 U.S. technology firms by market capitalization. Despite its impressive market value, the company’s valuation reflects substantial investor expectations, with Palantir trading at about 273 times its projected forward earnings. This price-to-earnings ratio is notable, as the only other company in the top 20 with a triple-digit forward P/E ratio is Tesla, which trades at around 175.
In terms of revenue, Palantir remains significantly smaller than other top companies. Over the past twelve months, the company reported total revenue of $3.1 billion, which is far below the next smallest firm among the top 20 by market cap. For comparison, Mastercard, valued at $518 billion, generated roughly $29 billion in revenue during the same period.
Palantir’s rise highlights investor confidence in its AI capabilities and strategic position within government sectors. As it continues to develop innovative solutions and expand its footprint, the company is positioning itself for long-term growth, despite the lofty multiples investors are currently paying.
READ MORE: