Palantir Crossed A Line The Market Still Misses

Palantir generated 85% revenue growth while operating expenses rose only 32%, driving 60% adjusted operating margins and 57% free cash flow margins. Stable stock-based compensation alongside rapidly growing revenue is allowing earnings and free cash flow to compound much faster than sales. Remaining performance obligations surged 134% to $4.5 billion, while 150% net dollar retention highlights expanding customer spending after deployment. Although Palantir trades near 38x forward sales, its long-term economics increasingly resemble software infrastructure rather than traditional enterprise software. My earlier Palantir Technologies ( PLTR ) thesis was that the market mistakenly viewed AI as a threat to Palantir, whereas I believed it would become one of the key platforms enabling enterprise AI deployment.