Market Value Surpasses Home Depot and P&G
Palantir has reached a new milestone in its ascent, becoming one of the 20 most valuable companies in the United States. The software and data analytics provider’s stock climbed over 2% on Friday, pushing its market capitalization to $375 billion. That places it ahead of iconic firms like Home Depot, Procter & Gamble, Bank of America, and Coca-Cola.
The surge reflects growing investor confidence in Palantir’s role at the intersection of artificial intelligence and national security. Since its 2003 founding by Peter Thiel, Alex Karp, and others, Palantir has steadily expanded its reach, particularly within the U.S. government.
AI Momentum Drives Investor Interest
This year alone, Palantir’s stock has more than doubled as enthusiasm around its artificial intelligence capabilities fuels investor demand. The company’s strong government ties and positioning in defense tech give it a strategic edge as nations invest heavily in AI-powered systems for intelligence and military operations.
In the most recent quarter, Palantir’s U.S. government revenue jumped 45% to $373 million. Total sales reached $884 million, up 39% year over year. The company will next report earnings on August 4, with analysts closely watching its commercial and defense AI deployments.
Valuation Soars Despite Modest Sales Base
While Palantir’s valuation now places it in elite territory, its fundamentals reveal a unique growth profile. It trades at 273 times forward earnings, a premium exceeded only by Tesla among the top 20 U.S. companies. The elevated multiple reflects high expectations for future expansion in AI and government tech.
In terms of revenue, Palantir generated $3.1 billion over the past 12 months — significantly less than any of its new market cap peers. For comparison, Mastercard, with a $518 billion valuation, brought in $29 billion in sales. Despite the gap, investors are betting that Palantir’s niche dominance and sticky contracts justify the valuation.
Palantir’s Climb into Tech’s Upper Tier
Earlier in 2025, Palantir surpassed tech giants like Salesforce, IBM, and Cisco to break into the top 10 U.S. tech firms by market capitalization. Its blend of AI innovation, government contracting, and deep data capabilities positions it uniquely in a market where traditional tech faces tighter margins and heavier regulation.
Whether the current price can be sustained remains to be seen, but for now, Palantir’s rise underscores the market’s hunger for AI-driven growth stories with real-world impact.