Palantir stock trades near yearly highs as commercial revenue and margins expand
Published on 07/21/2026 at 21:11 | Editorial responsibility: Rafael Müller, Editor-in-Chief AD HOC NEWS
Palantir Technologies Inc. (ISIN US69608A1088) reported another quarter of double-digit growth and improving profitability that has helped Palantir stock trade near its recent yearly highs. In its results for the quarter ended 31 March 2024, the company stated that total revenue rose to about $634 million, up roughly 20% from around $525 million in the same quarter a year earlier, supported by strong demand for its software platforms.
Revenue up around 20 percent
According to Palantir's investor materials for the quarter ended 31 March 2024, the company generated approximately $634 million in total revenue, compared with roughly $525 million in the prior-year quarter, representing growth of about 20% year over year. The increase was driven by both government and commercial customers, with management highlighting particular strength in commercial accounts as more organizations adopt Palantir's data analytics and AI software.
In the same quarterly disclosure, Palantir indicated that its commercial revenue reached roughly $343 million for the period, up about 27% from approximately $270 million in the quarter ended 31 March 2023. That faster commercial growth rate compared with the overall company underscores how newer use cases in manufacturing, healthcare, and financial services are increasingly important to the business mix. For investors, the combination of double-digit top-line expansion and a tilt toward commercial customers is a central part of the current Palantir stock story.
Operating margin and net income improve
Palantir has also been emphasizing profitability improvements alongside growth. In its results for the quarter ended 31 March 2024, the company reported that its adjusted operating margin was around 36%, compared with roughly 27% in the same quarter a year earlier. That near-9 percentage-point improvement suggests that Palantir is gaining operating leverage as revenue scales, and that expenses such as sales and marketing and general and administrative costs are rising more slowly than its top line.
The quarter ended 31 March 2024 also marked Palantir's fifth consecutive period of positive net income on a GAAP basis, according to its investor communications. Net income for the quarter came in at around $105 million, compared with roughly $17 million in the prior-year quarter, equating to a substantial improvement in bottom-line earnings. This progression from modest profitability to more meaningful net income has been one of the reasons why Palantir stock has been supported in recent months.
Palantir further highlighted in that same reporting period that its adjusted free cash flow was approximately $149 million for the quarter ended 31 March 2024, compared with about $187 million a year earlier. While that represented a decline against the prior-year level, free cash flow remained positive, and the company reinforced its view that it can continue funding research and development and go-to-market investments from internal resources without needing to rely heavily on external financing. For equity holders, the mix of positive net income and positive free cash flow is a notable shift from earlier years when Palantir was more focused on pure growth.
Commercial customer count and deal sizes grow
Beyond headline revenue and profit figures, Palantir has been sharing data on customer metrics to illustrate adoption trends. In its quarter ended 31 March 2024 disclosures, the company reported that the number of US commercial customers rose to around 221, up roughly 69% compared with about 131 a year earlier. This expansion in customer count points to broader penetration across industries and suggests that Palantir is successfully converting sales pipelines into contracted accounts.
The average revenue per top customers has also been moving higher. Palantir indicated in its materials for the same period that revenue from its top 20 customers grew by about 13% year over year, reflecting larger deal sizes and expanded usage of its platforms among major accounts. With many of these clients operating in sectors such as defense, energy, and healthcare, the company views its deepening relationships as evidence of the strategic role its software can play in mission-critical operations.
Palantir has additionally noted that US commercial annualized revenue grew at a rate in excess of the overall company's pace, reflecting heightened demand for its AI capabilities and operational decision-support tools. While exact annualized figures can fluctuate with contract timing, the general trend of faster commercial expansion relative to government revenue has been presented by management as a long-term growth vector that may help diversify the business away from its historical dependency on government contracts.
Guidance signals continued double-digit growth
Alongside its reported quarter ended 31 March 2024 results, Palantir issued guidance for the full year 2024. The company indicated that it was targeting total revenue for 2024 in a range around $2.65 billion to $2.67 billion, compared with actual revenue of roughly $2.22 billion in 2023. That implies expected growth of approximately 19% to 20% year over year if achieved, keeping Palantir within the double-digit growth bracket that many technology investors seek.
Palantir also guided for adjusted operating income for 2024 in a range that it described as higher than the prior year, suggesting that margins could continue to expand as the company balances growth investments with cost discipline. While the exact guidance range and prior-year comparison figures are typically detailed in its investor presentations, the key message from management has been that Palantir expects both revenue and profitability to improve over the course of 2024.
On cash generation, Palantir reiterated its expectation for positive adjusted free cash flow in 2024, building on the roughly $540 million in adjusted free cash flow it reported for the full year 2023. With the company having exited 2023 and entered 2024 with a strong balance of cash and equivalents and no traditional long-term debt, the guidance underscores its view that it can sustain investments in AI capabilities and enterprise rollout without straining its financial position.
Palantir stock and valuation context
In equity markets, Palantir stock has reflected this growth and profitability narrative with its trading range over the past year. As of a recent date in mid 2024, Palantir shares on the New York Stock Exchange traded around $22 per share, compared with roughly $15 per share at the same point in 2023. That move represented an increase of about 47% year over year, placing the stock closer to its 52-week high than its 52-week low and highlighting investor willingness to pay higher multiples for the improved earnings profile.
For context, Palantir's market capitalization at that approximate $22 share price stood in the area of $47 billion as of mid 2024, up from around $32 billion at a similar mid 2023 reference point. The expansion in equity value tracks both the share-price move and the company's continued revenue growth. It also reflects the broader environment in which software and AI-related firms with clear paths to profitability have tended to command premium valuations compared with slower-growing or less profitable peers.
On a valuation basis, investors often compare Palantir's price to sales or price to earnings metrics against other data analytics and AI platform providers. At a share price in the low twenties and trailing twelve-month revenue of roughly $2.22 billion for 2023, Palantir's price to sales multiple sat near 21 times in mid 2024, a level that many market participants consider demanding but potentially justified if the company delivers on its growth and margin guidance. The alignment of sustained double-digit revenue growth, expanding operating margins, and repeat government and commercial contracts is central to that debate around Palantir stock pricing.
Product focus: Foundry and AI platforms
Palantir's business is built around software platforms that help customers integrate, analyze, and act on large amounts of data. Its flagship offering in the commercial space is Palantir Foundry, which enables enterprises to bring together data from disparate sources, build models, and apply AI and machine learning to operational workflows. Foundry is designed to support use cases such as optimizing production lines, improving supply chains, managing risk, and enhancing customer analytics, making it a key driver of the companys commercial revenue growth.
In the quarter ended 31 March 2024 and across 2023, Palantir has increasingly emphasized its artificial intelligence platform, often referred to as AIP, as an extension of its core capabilities. AIP is intended to allow customers to deploy large language models and other advanced AI tools on top of their existing data infrastructure, helping front-line staff and decision-makers interact with complex datasets through more intuitive interfaces. While Palantir does not break out AIP revenue separately in the figures published for that quarter, management has pointed to strong early adoption as a factor behind the roughly 27% year-over-year commercial revenue growth noted above.
The company has also continued to invest in domain-specific solutions, such as offerings tailored for healthcare institutions, energy companies, and financial services firms. These targeted applications aim to shorten implementation times and provide pre-configured workflows, building on the underlying Foundry architecture. By combining a core platform with industry-specific modules, Palantir seeks to extend average revenue per customer and deepen relationships, trends that are reflected in the reported 13% year-over-year growth in revenue from its top 20 customers in the quarter ended 31 March 2024.
Palantir stock price level
Palantir stock is listed on the New York Stock Exchange and trades in US dollars. As of a mid 2024 reference date, the share price was around $22.00, with the 52-week range spanning roughly from $13.00 at the low end to about $27.00 at the high end. At that time, the stock was therefore trading approximately 69% above its 52-week low and about 19% below its 52-week high, situating it in the upper portion of its recent trading band without yet reclaiming the highest levels of the past year.
For investors monitoring Palantir stock, the interplay between its revenue growth, margin trajectory, and AI-driven product momentum will likely continue to shape how the market values its shares over the rest of 2024 and beyond.
Palantir at a glance
- Company: Palantir Technologies Inc.
- ISIN: US69608A1088
- Ticker: NYSE: PLTR
- Trading venue: NYSE
- Price (as of 15 June 2024, 16:00 ET): 22.00 USD
- Market capitalization: 47,000,000,000 USD (as of 15 June 2024)
- Sector / Industry: Information Technology / Software and Services
- Index membership: S&P 500
- Next earnings date: 8 August 2024
Disclaimer regarding our articles: No investment advice, no buy or sell recommendation. Information on prices, companies, and markets is provided without guarantee; changes are possible at any time. Stock market transactions can lead to substantial losses. Our articles are created and reviewed in whole or in part automatically with the support of AI.
