The most richly valued stock in the S&P 500 might actually be worth the price. PalantirPLTR

just surpassed expectations by crossing the $1B quarterly revenue threshold for the first time while delivering a 48% year-over-year revenue growth. The data analytics powerhouse has transformed from a CIA-backed startup to one of the top 20 most valuable US companies, with shares more than doubling this year as the AI boom fuels unprecedented demand.

• US revenue surged 93% while government contracts rose 53% annually, boosted by an Army deal worth $10B over a decade and Trump’s efficiency push.
• Although the company trades at 276x forward earnings, over 8x pricier than tech peers — CEO Alex Karp says skeptics have reduced and been “bent into a kind of submission.”

Raising the bar: Palantir raised its full-year revenue outlook to $4.15B, marking its second upward revision this year. DA Davidson’s Gil Luria noted that Palantir has “more momentum than any other publicly traded software company.” Still, Robert W Baird & Co.’s Ted Mortonson warned that the lofty valuation means the company must continue to “absolutely annihilate the Street” to maintain investor confidence in its AI-powered future.