Palantir (PLTR), a leader in AI-powered Software-as-a-Service (SaaS), is on the verge of a historic achievement. The company, which enables both private corporations and government agencies to harness massive datasets and uncover hidden insights, is set to surpass SAP as the world’s largest pure play software company. With a market capitalization of $336 billion, Palantir is now just a small leap away from claiming the top spot. 
As of the latest figures, SAP, with a market cap of roughly $360 billion, stands in its way. A $10 increase per share will seal the deal for Palantir to dominate the space.
What makes this achievement even more impressive is Palantir’s financial health. The company boasts a Rule of 40 score of 83 percent, demonstrating robust growth and profitability. In the first quarter of 2025, Palantir exceeded expectations across the board. Revenue surged by 39 percent year-over-year, hitting $883.9 million. The company secured 139 government contracts with a combined value of over $1 million each, solidifying its position in the public sector. On the commercial front, Palantir reported an incredible 183 percent increase in deals, totaling $810 million.
Despite these successes, Palantir faces challenges. The company is now under increased competition, particularly from OpenAI, which recently secured a significant $200 million contract with the U.S. Department of Defense. This marks OpenAI’s first major defense contract, a territory where Palantir has long been a dominant force. However, Palantir’s Maven Smart System program still remains one of the largest contracts in the Department of Defense, with an annual recurring revenue (ARR) run-rate of $210 million.
In addition to these developments, Palantir is poised to join the Russell 1000 Index, further cementing its status as a major player in the tech world. While some analysts remain cautious about the company’s future in light of new competition, the future looks bright for Palantir, which continues to break new ground in the software industry.
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The commercial growth is wild. 183% up year over year? I didn’t realize they had such a huge presence in the private sector. Palantir is definitely worth watching