What Palantir actually does
Palantir was founded in 2003 by Peter Thiel, Stephen Cohen, Joe Lonsdale, Alex Karp and Nathan Gettings. It builds software that brings together data from many sources and helps organisations make decisions from it. Its customers include government agencies, military and intelligence services, and a growing number of private companies.
It has four main platforms:
- Gotham, used mainly for defence and intelligence work.
- Foundry, for companies that want to integrate and analyse their data.
- Apollo, which handles software deployment.
- AIP, its artificial intelligence platform.
The company went public in September 2020 through a direct listing on the NYSE and moved to the Nasdaq in late 2024.
How the business makes money
Palantir sells software subscriptions and long-term contracts. A large share of revenue has come from governments, though the commercial side has been growing quickly. Contracts can be large and sometimes involve deep integration into a customer’s operations, which makes them sticky.
The dividend story
Palantir does not pay a dividend. It focuses on growth and the share price has often reflected very high expectations for future profits. The company has recently started to earn consistent profits, but returning cash through dividends is not part of its model today.
For readers focused on income, it is a reminder that a high-profile growth stock is a very different proposition from a company that returns cash regularly.
What to keep an eye on
- Valuation. The share price has often been priced for strong long-term growth.
- Government dependence. Contract timing and politics can affect revenue.
- Stock-based pay. Share issuance to employees dilutes existing holders.
- Competition. Large cloud providers and AI vendors are moving into the same space.
Quick take
Palantir is a high-profile AI and data-software growth company with no dividend. Use the chart below to see how sharply sentiment can move its share price.