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Palantir's AIP Platform Sees Soaring Adoption Across Enterprises (Revised)

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Key Takeaways

  • PLTR's AIP platform pushed U.S. commercial revenue up 71% YoY and 19% sequentially in Q1 2025.
  • Total contract value in the U.S. commercial segment surged 239% YoY, with $1M deals closed.
  • AIP bootcamps and AI agents help clients rapidly deploy AI workflows and compress decision timelines.

Big data and AI specialist Palantir Technologies (PLTR - Free Report) is gaining significant momentum with its Artificial Intelligence Platform (AIP), which is quickly emerging as the company’s most powerful enterprise growth engine.

AIP adoption is snowballing, pushing U.S. commercial revenue up 71% year over year and 19% sequentially in the first quarter of 2025, breaking the $1 billion annual run rate barrier for the first time. Total contract value in this segment skyrocketed 239% YoY, with deal sizes proliferating, more than double the number of $1 million contracts closed compared to last year.

The company’s AIP bootcamps, short, intensive training programs designed to help clients implement the platform, have surged in popularity. These sessions are enabling customers to deploy production-grade AI workflows quickly, drastically reducing time-to-value and highlighting AIP’s usability.

Palantir's AIP is enabling enterprises to deploy autonomous AI agents that drastically compress decision timelines and increase productivity not by percentages, but by multiples. Recently, Walgreens deployed AI-powered workflows to 4,000 stores in just eight months. At its recent Investor Day, AIG said its agentic AI ecosystem with Palantir, Anthropic, and AWS can accelerate the underwriting process up to 5X.

While the market obsesses over AI model development, PLTR is dominating the demand side, delivering enterprise-ready solutions that generate quantified exceptionalism from day one. The U.S. commercial business now seems to be the company's most dynamic growth engine, and AIP is the accelerant.

The Surge in Enterprise AI Integration

Alphabet’s (GOOGL - Free Report) Google, Microsoft (MSFT - Free Report) , and Salesforce (CRM - Free Report) are rapidly advancing generative AI. Microsoft integrates AI in Office via Copilot and expands Azure’s AI. Google embeds AI in Workspace and enhances Vertex AI. Salesforce incorporates AI across its CRM, especially through Einstein Copilot and Data Cloud. Microsoft is also focusing on AI governance, while Google is strengthening AI security. Salesforce further refines dynamic customer experiences.

Yet, Palantir stands apart, excelling in secure, high-stakes domains like defense and healthcare. Unlike Salesforce and Google’s customer-facing tools, or Microsoft’s broader approach, Palantir’s AIP uniquely powers core operational decisions in ways Salesforce, Microsoft and Google have yet to match.

PLTR’s Price Performance, Valuation, Estimates

The stock has surged a whopping 76% year to date, significantly outperforming the industry’s 10% rally.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

From a valuation standpoint, PLTR trades at a forward price-to-sales ratio of 71.64, well above the industry’s 5.53. It carries a Value Score of F.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

The Zacks Consensus Estimate for PLTR’s earnings has been on the rise over the past 30 days.

 

Zacks Investment ResearchImage Source: Zacks Investment Research

PLTR stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

(We are reissuing this article to correct a mistake. The original article, issued on June 2, 2025, should no longer be relied upon.)

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