Palantir Technologies (PLTR) has become one of the most talked-about tech companies of 2025. Known for its data analytics and artificial intelligence (AI) software, the company has seen its stock surge more than 370% in the last year.
Investors see Palantir as more than just a government contractor. It is positioning itself as a leader in using AI for business, climate, and sustainability challenges.
Let’s explore Palantir’s stock momentum and how the company expands its markets. Lastly, let’s unravel how ESG goals and net-zero commitments are opening new opportunities for its software.
Riding the AI Wave: Palantir’s Stock Momentum
Palantir’s stock has climbed sharply since late 2024. Much of the growth comes from strong demand for its AI-driven Foundry and Gotham platforms. These systems help governments and companies make better choices. They analyze large amounts of data in real time.
The company has also shifted from relying mostly on government contracts to building a much larger commercial business. Palantir’s U.S. commercial revenue grew over 70% in the past year. Analysts note that this kind of growth is rare for a company of its size.
This expansion has turned Palantir into what some investors call a “cult stock.” It has gained a loyal base of supporters who believe the company’s tools can transform industries. They admire its work in AI, defense, and data analytics, which gives Palantir a devoted following. The company’s leadership style and the secrecy around some contracts also add to its mystique.
What causes the stock to climb higher?
Palantir’s stock rose about 300% over the past year and is up roughly 130–140% year-to-date in 2025. Retail investors have poured it into their portfolios, ranking it among the top three for net inflows behind Nvidia and Tesla. CEO Alex Karp has sold around $1.9 billion in shares since early 2024, highlighting the company’s high value.
Palantir’s stock has also climbed due to a major £750 million ($950 million) contract with the UK Ministry of Defence, finalized this month. This deal is ten times larger than its previous UK contract and will expand AI integration across military, health, and law enforcement systems.
The agreement positions London as Palantir’s European defense hub, supports up to 350 new jobs, and strengthens Western AI and defense partnerships. Combined with its commercial growth and strong ESG positioning, this contract adds another reason why investors are bullish on Palantir’s stock.
While these excitements fueled the company’s share price, it is Palantir’s role in ESG and sustainability that could define its long-term growth. Investors increasingly look at how the company manages carbon, energy use, and ethical practices alongside financial performance.
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Why ESG Data Is Palantir’s Secret Weapon
The global push toward net zero is changing the way businesses operate. Over 140 countries have set net-zero targets. Also, thousands of companies have pledged to reduce carbon emissions. Tracking and meeting these goals requires accurate data, clear reporting, and advanced forecasting tools.
This is where Palantir fits in. Its software can integrate data from across supply chains, energy use, shipping, and raw materials. By giving companies a complete picture of their environmental footprint, Palantir helps them track progress on emissions reduction and prepare for stricter climate regulations.
For example, Palantir can:
- Monitor Scope 1, 2, and 3 emissions across global supply chains.
- Run simulations to test how business decisions affect carbon output.
- Help companies meet new reporting rules, such as the EU’s Corporate Sustainability Reporting Directive (CSRD).
- Support governments in planning renewable energy infrastructure and grid optimization.
Palantir’s ESG focus makes it key in the global push for sustainability. This also gives investors another reason to back the stock. Here are the company’s emission reduction and energy efficiency works in connection to its software:
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Trafigura Supply Chain Tracking: Built a platform with Palantir Foundry to model and report lifecycle carbon intensity. Covered 10 million carbon pathways across crude oil, refined metals, and more. Helps companies understand and reduce Scope 3 emissions.
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Tree Energy Solutions (TES) Partnership: Supports green hydrogen and e-natural gas projects. Foundry used for supply chain management, site selection, asset management, and carbon tracking. Improves efficiency and lowers carbon costs globally.
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Nuclear Energy Collaboration: Co-developing a Nuclear Operating System (NOS) to speed up reactor construction. Improves safety, lowers costs, and supports faster clean energy deployment to cut emissions.
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Utility Grid Modeling: A European utility used Foundry to combine control system and geographic data. Built network models that improved outage management, maintenance, and planning. Reduced downtime and wasted energy.
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EV Charging Optimization: Foundry helps plan charging station locations. Cuts unnecessary infrastructure and costs. Supports EV adoption and reduces transport emissions.
Net-Zero Policies: Fuel for Foundry’s Growth
Governments worldwide are tightening climate policies. In the United States, the Inflation Reduction Act is channeling billions of dollars into clean energy and carbon tracking. In Europe, regulators are making carbon disclosures mandatory for many large firms. Meanwhile, in Asia, countries like Japan and Singapore are setting frameworks for voluntary carbon markets.
As companies work to comply, they are turning to advanced software to handle the complex data. Palantir’s Foundry platform helps energy companies manage renewable projects. It’s also used by manufacturers to track emissions.
McKinsey & Company estimates that the semiconductor industry alone could reduce emissions by up to 90% if it meets net-zero goals by 2050. Similar targets exist across industries such as automotive, steel, and logistics. To meet them, we need digital solutions that can handle millions of data points. Palantir excels in this area.
Palantir is also showing significant progress in cutting its own carbon footprint. It has achieved carbon neutrality in 2024, cutting emissions by 31% from its 2019 baseline. That year, it reported 23,018 metric tons of CO₂e, a small rise from 2023 due to increased travel. However, emissions per employee dropped 57% since 2019, now just 6 tCO₂e.
As a software company without factories, Palantir’s direct emissions are low, mostly from office energy use. Its largest impact is Scope 3, especially travel and cloud services.
Cloud emissions fell 32% between 2022 and 2023 thanks to energy-efficient data centers. To offset residuals, Palantir buys verified carbon credits supporting renewable energy and waste projects.
Why Investors Care
For ESG-focused investors, Palantir offers a mix of strong financial performance and sustainability potential. Its ability to connect AI with climate challenges is becoming a major selling point.
The ESG angle makes the story even stronger. Palantir helps businesses measure and reduce emissions. This puts the company in a strong spot as the world moves toward net zero. Investors looking for both growth and impact see this as a rare combination.
The Future of Palantir: AI at the Heart of Net Zero
Palantir is no longer just a defense contractor or niche software provider. It is becoming a mainstream AI company with a major role in the sustainability economy. The ability to link financial goals with ESG progress is a key advantage.
Looking ahead, Palantir’s growth will likely come from three main areas: commercial expansion, sustainability solutions, and government partnerships.
Palantir’s rise is more than just a stock story. It reflects a shift in how businesses and governments use AI to tackle climate change and net-zero goals. By giving organizations the tools to track emissions, improve efficiency, and meet ESG standards, Palantir has positioned itself at the center of two powerful trends: AI adoption and sustainability.
