Palantir Technologies (PLTR) is no longer just a defense contractor with a promising commercial story. It is also the operating system for some of the most complex organizations on the planet, and a fresh wave of contracts is making that case harder to ignore.
On April 28, Cleveland-Cliffs (CLF) — one of North America's largest steel producers — announced a three-year strategic partnership with Palantir to embed artificial intelligence (AI) directly into its production planning, order entry, and operational workflows. The move puts Palantir's platform at the center of one of the most logistically demanding industries in the country.
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"What we have seen so far has been nothing short of a gamechanger," said Cleveland-Cliffs CEO Lourenco Goncalves about the deal. "Integrated steelmaking is extraordinarily complex and Palantir's platform allows us to solve problems in ways humans simply cannot."
www.barchart.com Palantir's Deal Flow Is Accelerating Fast
The Cleveland-Cliffs partnership is just the latest in a string of high-profile wins for Palantir.
For one, the company recently secured a $300 million Blanket Purchase Agreement with the U.S. Department of Agriculture (USDA) to modernize the agency's service delivery to U.S. farmers. The USDA's Landmark platform, powered by Palantir, already broke all prior agency records for online farmer sign-ups within 62 minutes of opening one program, delivering over $4.4 billion directly to farmers in just the first five days.
Back in March, Palantir also announced the renewal and expansion of its long-standing partnership with Stellantis (STLA), extending a collaboration that started in 2016. The new five-year agreement broadens the automaker's use of Palantir Foundry and introduces the company's Artificial Intelligence Platform (AIP) across “select business functions.”
The Numbers Behind the Palantir Story
Palantir's fourth-quarter earnings report showcased its spectacular growth trajectory.
For the period, revenue rose 70% year-over-year (YOY) to $1.41 billion, the highest growth rate in Palantir's history as a public company. U.S. revenue also crossed $1 billion in a single quarter for the first time. The U.S. commercial business, the segment most relevant to deals like Cleveland-Cliffs, grew 137% YOY to $507 million. That followed U.S. commercial revenue growth of 121% in Q3 2025 and 93% growth in Q2 2025.
The company's Rule of 40 score, a widely used benchmark that combines revenue growth and profit margin, reached 127% in Q4 2025. For context, a score above 40% is generally considered healthy. Palantir's score was more than three times that threshold.
Full-year 2025 adjusted free cash flow came in at $2.27 billion, indicating a 51% margin. The firm ended the quarter with $7.2 billion in cash.
For 2026, management guided for full-year revenue of $7.19 billion at the midpoint, representing 61% YOY growth.
Should You Buy, Sell, or Hold PLTR Stock?
Palantir is winning deals across defense, government, and commercial industries at an accelerating pace. However, the bear case centers on valuation. PLTR stock trades at a significant premium to most enterprise software peers, and any slowdown in deal momentum or macro pressure could quickly weigh on the stock, given how much future growth is already priced in. Trading at 74 times forward sales and 132 times forward earnings, PLTR stock is among the most expensive S&P 500 ($SPX) stocks.
Out of the 28 analysts covering PLTR stock, 17 recommend a “Strong Buy” rating, nine recommend a “Hold,” one has a “Moderate Sell,” and one analyst offers a “Strong Sell” rating. Overall, Palantir has a consensus “Moderate Buy” rating. The average price target of $195.04 suggests potential upside of 32% from current levels.
For long-term investors with a high tolerance for volatility, it's hard to argue with Palantir's fundamental picture. The recent deal flow and guidance raise give investors who are already holding shares little reason to exit. However, for those on the sidelines, the entry point after a strong run is the real question. Palantir is executing at a historic level. Whether PLTR stock fully reflects that is what every investor needs to decide for themselves.
www.barchart.com On the date of publication, Aditya Raghunath did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
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