$Palantir Tech(PLTR.US) After delivering better-than-expected results in Q4 2025, coupled with a significant contraction in valuation multiples, this company, which is deeply tied to the U.S. Department of Defense and possesses a model-agnostic AI platform, not only emerged unscathed from the changes in Anthropic's government contracts but also demonstrated a potential upside of about 24% over the next 12-24 months, thanks to its asset-light business model and explosive growth, becoming a target in the AI race that combines earnings certainty and valuation attractiveness.

Milestone Performance: 70% Revenue Growth +57% Profit Margin, Asset-Light Model Shows Strength

Financial report data shows that the company's Q4 revenue surged 70% year-over-year to $1.41 billion, exceeding market expectations by 4.88%. More notably, the revenue growth combined perfectly with a 57% adjusted operating profit margin, upgrading the original "Rule of 40" for measuring tech companies directly to the "Rule of 127," confirming the "high-quality" nature of its business expansion.

In terms of business structure, PLTR achieved dual-wheel drive from both government and commercial ends: government revenue grew 66% year-over-year, benefiting from deep integration with the U.S. Department of Defense's technology stack. The U.S. Navy alone awarded it a $448 million contract for shipbuilding supply chain modernization. Commercial revenue saw a 137% year-over-year explosion, primarily due to the large-scale adoption of AI integration products (AIP) by enterprise customers. The average revenue from the top 20 customers over the past 12 months reached $94 million, a 45% year-over-year increase, with many customers seeing their annual contract value multiply within a year.

The asset-light business model further elevated PLTR's profitability efficiency. In Q4, the company's net profit reached $608 million, operating cash flow was $773 million, while capital expenditure was only $13.3 million. Non-GAAP earnings per share grew over 78% year-over-year, exceeding market expectations by 8.60%. Based on this, management raised its performance guidance for fiscal year 2026, expecting sales to reach $7.19 billion, a 61% year-over-year increase, far surpassing the previous market consensus expectation of $6.2 billion, demonstrating strong confidence in future growth.

Immune to Bad News + Valuation Bottom: No Impact from Anthropic Event, P/E and P/S Both Halved

Market concerns about PLTR have mainly focused on two aspects: first, whether changes in Anthropic's contracts with the U.S. government would affect the AI defense industry chain, and second, whether the high valuation contained a bubble. Under the current market landscape, both these major concerns have been alleviated. Combined with valuations falling to a bottom, PLTR's allocation value has become prominent.

In the Anthropic event, PLTR became the biggest "immune one." The Trump administration recently ordered federal agencies to stop using Anthropic technology, which was listed as a national security supply chain risk. Related operations like the Pentagon's war simulations face switching. Investors like Amazon and Alphabet were affected by short-term negative news, while Microsoft gained a tactical advantage with Azure and OpenAI. However, for PLTR, the core advantage of its model-agnostic AI platform began to show—the company cooperates with both OpenAI and Anthropic, and its core technology is designed as a "brain" that can interoperate with any large model. Whether it's Claude or GPT-5.2, they are merely inference engines for its Common Operational Picture (COP). The real core value lies in its ability to integrate, analyze, and deploy massive data in real-world scenarios.

Currently, PLTR's technology is deeply integrated into the U.S. Department of Defense's military operations. Its Gotham platform can provide real-time data analysis and machine learning model training for Iran-related military actions, while its Apollo product is responsible for protecting theater network infrastructure, becoming an irreplaceable part of the U.S. defense system. With U.S. defense spending expected to reach $1.5 trillion by 2027, the intensification of geopolitical conflicts will drive continued growth in defense budgets, and the share of AI and IT spending within it will continue to expand, providing long-term incremental growth for PLTR's government business.

At the same time, PLTR's valuation has fallen to a historically relative bottom, completely shedding the label of a "high valuation bubble." Since the beginning of 2026, affected by market concerns about the SaaS sector, the company's forward P/E ratio has declined by about 54%, and the P/S ratio has plummeted by over 50%. As of March 4, 2026, its P/S ratio is 81.86, significantly contracted from its historical high, and its stock price has also fallen over 30% from its all-time high, with the correction being sufficient.

Conclusion: The Allocation Window for the AI Defense Leader Has Arrived

This company, once watched by the market due to its high valuation, has now proven the scalability and profitability of its business model with 70% revenue growth and a 57% adjusted operating profit margin. Its model-agnostic AI platform gives it a unique position in the competition of the AI industry chain, while its deep ties with the U.S. Department of Defense provide it with a long-term, stable performance foundation. The Anthropic event not only caused no impact but instead highlighted the core value of its technology.

Of course, investing in PLTR still requires attention to valuation fluctuation risks. If market preference for tech stock valuations declines further, its stock price may still face short-term corrections. However, in the long run, with the large-scale adoption of AI in defense and commercial fields, and the continued increase in AI spending within the U.S. defense budget, PLTR, as a leader in the AI defense sector, is poised to fully enjoy the industry's dividends.