Palantir Technologies (NASDAQ: PLTR) is once again in the spotlight as its stock edges closer to record highs. The company is gaining momentum thanks to strong demand in the U.S. and a new partnership with Boeing Defense, Space & Security.
Palantir’s data analytics and AI platforms are becoming more important. They impact both government and commercial markets. At the same time, investors remain focused on whether the AI company can balance growth with its high valuation.
From Data to Defense: Palantir’s Boeing Breakthrough
The company’s latest deal with Boeing is a key reason behind its recent stock rally. Boeing will integrate Palantir’s Foundry platform across its defense and space operations. Foundry will help Boeing manage data better, optimize supply chains, and make smarter decisions in its manufacturing facilities.
Steve Parker, president and CEO of Boeing Defense, Space and Security, noted:
“The game-changing capabilities this provides us … is it allows us to make decisions not in weeks, but in days and hours…This is really the AI synthesizing data, allowing us to make decisions.”
For Boeing, the partnership offers tools. These tools help cut costs from supply chain delays and production issues. For Palantir, it strengthens credibility with one of the largest aerospace and defense contractors in the world. This collaboration also shows how Palantir’s technology can move beyond government contracts into major commercial and industrial operations.
Palantir has been steadily growing its commercial business. Today, over 40% of its revenue comes from commercial clients. This is a shift from earlier years, when it focused almost entirely on government work. The Boeing partnership is expected to help drive more adoption of Palantir’s AI solutions across industries.
U.S. Market Momentum: Earnings on the Rise
Palantir’s financial performance in 2025 has been marked by rapid expansion in the U.S. market. In its most recent quarter, the company reported revenue of $884 million, beating analyst expectations.
U.S. commercial revenue grew 71% year over year, while U.S. government contracts rose 45%. These results show that Palantir is successfully expanding its reach in both defense and commercial sectors.
However, the picture is not equally strong across all regions. Palantir’s European commercial revenue fell by about 5%, suggesting weaker demand outside the U.S.
Even so, the company raised its full-year revenue forecast to nearly $3.9 billion, reflecting confidence in continued growth.
Investors have taken note of this momentum. Palantir shares have recovered from their late summer pullback, gaining nearly 18% and trading close to previous highs at $185. Analysts have set price targets that suggest further upside if the company can keep delivering growth.
AI in the Sky: Why Boeing Chose Palantir
The Boeing agreement shows how Palantir is placing itself at the heart of digital change in defense and aerospace. Boeing will use Palantir’s software to integrate data across its factories and programs. This could help the company predict supply chain issues, make decisions faster, and boost the readiness of its defense systems.
For Palantir, the partnership shows that its platforms can be applied to large-scale industrial problems. It may also open doors to further contracts with aerospace and defense companies worldwide. As more companies use AI-driven analytics, Palantir can grow in industries that need efficiency and security.
Mike Gallagher, Palantir’s head of defense, remarked on this partnership, saying:
“type of partnership that I think has the possibility to unlock transformation within the defense industrial base and enhance deterrence in the near term, not in a matter of distant decades.”
The deal also adds to Palantir’s credibility with investors. Palantir’s tech works well beyond government and niche markets. Their partnerships with big companies show this clearly. Instead, it is proving useful in some of the most complex and regulated industries.
Riding the Wave of Explosive Growth in AI and Data Analytics
The global data analytics software market is growing fast. In 2024, it was worth about $69 billion, and it’s expected to climb to $302 billion by 2030, with a compound annual growth rate (CAGR) of ~28%.
Meanwhile, the enterprise AI market could expand from around $97 billion in 2025 to $229.3 billion by 2030, growing at ~18.9 % per year.
These trends show strong demand for tools like Palantir’s platforms. As more companies adopt AI and analytics, Palantir may benefit from this rising tide of investment and interest.
Behind these financial and market momentum, the AI company is also paying attention to its sustainability commitments.
ESG and Emission Reduction: Palantir’s Net Zero Pathway
Palantir has committed to reaching net zero emissions across all scopes under its 2021 Climate Pledge. The company is working to cut emissions where possible and balance the rest with high-quality carbon offsets. This shows an effort to address both immediate impacts and long-term climate goals.
In 2019, Palantir set a baseline for its greenhouse gas emissions. By 2024, total emissions had risen slightly to about 23,000 tonnes of CO₂ equivalent, a reduction of about 31% compared to the 2019 baseline. This increase of 1.7% from 2023 was due to a gradual return to business travel and operational activities. But overall emissions per employee have dropped 57% since 2019.
The company also achieved carbon neutrality for its UK operations in 2023, covering remaining emissions through offsets.
- SEE MORE: Palantir (PLTR Stock): AI for Carbon Neutrality – A Software Giant’s Sustainable Footprint in 2025
To support this progress, Palantir is taking these actions:
-
Invests in better measurement and reporting. This improves how the company tracks emissions from business travel, cloud computing, and employee commuting.
-
It uses energy-efficient data centers and optimizes software workloads to reduce cloud computing emissions.
-
For emissions it can’t fully cut, it buys verified offsets and uses sustainable aviation fuel (SAF) for travel.
Overall, Palantir’s ESG strategy shows steady progress. While the reductions are gradual, the company is building systems to manage its footprint while aligning with broader net-zero goals.
Flying High or Overvalued? What’s Next for PLTR
Palantir’s path depends on its success in moving from government contracts to commercial industries. The Boeing partnership shows progress on this front, while strong U.S. demand continues to fuel revenue growth.
At the same time, investors remain aware of risks tied to valuation and uneven international performance. The company’s challenge will be to prove that it can replicate U.S. growth in other markets and continue delivering large-scale contracts.
If Palantir succeeds, it could strengthen its status as a top AI-driven software company. This would boost its influence in both public and private sectors. The coming quarters will reveal whether the Boeing deal and other partnerships translate into long-term performance.
As the company looks ahead, success will depend on expanding its global presence, managing valuation concerns, and delivering measurable results from its partnerships. For now, Palantir remains a key player to watch in the evolving world of AI and data analytics.
