Palantir Technologies’ (PLTR) meteoric revenue growth over the past few quarters demonstrates no signs of slowing down as the company experiences strong enterprise-level adoption of its artificial intelligence offerings and its government contracts continue to mount, according to Bank of America Research.
“We continue to see PLTR unmatched in their ability to rapidly achieve in-production solutions and provide human-machine teams with the ability to make the most informed decisions,” said BofA analysts, led by Mariana Perez Mora, in a Monday investor note. “The Ontology is key to providing guardrails, training and incorporating feedback when working with AI, including LLMs and agentic AI. In the build vs. buy a data operating system dilemma, time is of the essence. As improvements in AI accelerate, enterprises are realizing that the infrastructure offered by Palantir is critical for them to incorporate these rapidly evolving capabilities.”
In the government sector, BofA pointed to Palantir’s recent $448M two-year deal with the U.S. Navy.
Under a new effort known as ShipOS, Palantir will provide its Foundry platform and Artificial Intelligence Platform to the Navy. The U.S. Navy will use Palantir to support its long-running push to accelerate submarine construction, betting that the software company’s data and AI tools can help identify bottlenecks across a strained shipbuilding supply chain. The partnership has the chance to extend to surface ships as well.
BofA also said that Palantir continues to focus on improving their existing products to streamline operations, increase interoperability with open-source and other software applications, speed up development times, and enhance security and governance controls. These improvements require little in capital expenditures.
The financial firm reiterated its Buy rating and $255 price target on Palantir.
Over the past three quarters going backwards, Palantir’s year-over-year revenue growth was 63%, 48% and 39%, respectively.