TLDR
- Palantir stock jumped 5% after being added to the S&P 100 index
- U.S. commercial revenue grew 64% year-over-year to $214 million in Q4
- Company’s Artificial Intelligence Platform (AIP) driving strong growth
- Palantir stock is up 28% in 2025 despite recent volatility
- Trump administration connections and AI partnerships boost investor confidence
Palantir Technologies, the AI software and data mining specialist, saw its stock climb higher on Monday, March 24, 2025. The rally came after the company was added to the S&P 100 index, an elite group of the largest companies in the United States.
Palantir stock rose as much as 7.1% on Monday. By 2:03 p.m. ET, it was still up 5% for the day.
The addition to the S&P 100 coincided with the index’s quarterly rebalancing. This move is significant for Palantir, as it puts the company in a group of the 100 largest companies in the country.
Being admitted to this benchmark brings several benefits. It will likely attract attention from hedge funds and institutional investors.
Exchange-traded funds (ETFs) that track the index will also need to buy Palantir shares. These funds mirror the holdings of the index they track.
However, any “index effect” that boosts the stock price in the short term tends to diminish over time. Investors ultimately focus on revenue growth and profitability.
Palantir is making impressive strides in both areas. In the fourth quarter, the company reported revenue of $828 million, which grew 36% year over year.
Adjusted earnings per share reached $0.14, surging 75%. This growth has been fueled by a rapid increase in customers.
There’s also robust demand for the company’s Artificial Intelligence Platform (AIP). This platform uses company-specific data to help management make data-driven decisions.
U.S. commercial revenue grew 64% year-over-year to $214 million in Q4. U.S. government revenue grew 45% to $343 million in the same period.
Recent Performance and Technical Analysis
Palantir stock has gained 28% in 2025 despite market volatility. It hit an all-time intraday high of 125.41 on February 19.
At one point in March, shares had retreated 40% from that high. However, the stock has since reclaimed its 50-day moving average, a key technical level.
The company has also returned to the IBD Leaderboard, a list of top-performing stocks. Palantir currently holds a Relative Strength Rating of 99 out of a best-possible 99.
Its Composite Rating stands at 98 out of 99, according to IBD Stock Check-up. The best growth stocks typically have a Composite Rating of 90 or better.
For 2025, Wall Street projects earnings per share of 53 cents, up 29%. Revenue is expected to grow 31% to $3.754 billion.
Government Connections and Partnerships
Palantir stock advanced 340% in 2024, with much of the gain coming after Donald Trump’s presidential election win. Several members of the incoming Trump administration have ties to Palantir.
The company was co-founded by venture capitalist Peter Thiel. David Sacks, tapped as White House artificial intelligence and crypto czar, has connections to Palantir through the “PayPal Mafia.”
Elon Musk, a key Trump advisor, is also part of this network along with Thiel and Sacks. This connection has fueled speculation that AI will play a bigger role in homeland security and defense spending.
In December, the federal government gave Palantir a higher rating for secure cloud computing services. The company also announced a partnership with Booz Allen Hamilton, a competitor in some government services.
Palantir formed an alliance with defense firm L3Harris in October. In November, Palantir and startup Anthropic announced a partnership with Amazon Web Services to provide U.S. intelligence agencies access to Claude 3 AI models.
Palantir gets nearly 60% of its revenue from government agencies. The company offers three platforms: Gotham for government agencies, Metropolis for financial services, and Foundry for corporate clients.
The company’s valuation remains high, selling for 171 times forward earnings and 47 times forward sales. However, its recent decline brought its forward price/earnings-to-growth ratio to 0.9, suggesting the stock might be fairly valued given its growth potential.
With its recent addition to the S&P 100, strong financial performance, and promising AI initiatives, Palantir continues to draw attention from investors despite its premium valuation.
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