Palantir Surpasses Salesforce in Market Value Despite Having Only a Tenth of Revenue

Palantir Technologies has reached a £750 million ($950 million) deal with the UK Ministry of Defence, extending its AI integration across British military, health, and law enforcement systems. The five-year contract replaces a £75 million three-year deal, a tenfold increase. Palantir CEO Alex Karp's move deepens the company's role in Western defense and puts rivals on notice. Despite controversy, Palantir's impressive performance has Salesforce CEO Marc Benioff praising the company, with a market capitalization of $432.51 billion.

Palantir Technologies (PLTR) has made a significant stride in its global expansion with a £750 million ($950 million) deal with the UK Ministry of Defence. This five-year contract, announced on September 19, 2025, represents a substantial increase from the company's previous £75 million, three-year deal, marking a tenfold expansion in value. The agreement will see Palantir's AI integration extend across British military, health, and law enforcement systems.

The deal underscores Palantir's growing influence in Western defense, a sector where it has traditionally operated with a high profile. CEO Alex Karp's move is a strategic play that puts rivals on notice, particularly in the face of increasing competition and geopolitical tensions. The contract is part of a larger £1.5 billion investment drive through 2030, which is estimated to create 350 new jobs.

Palantir's impressive financial performance has not gone unnoticed. In the second quarter of 2025, the company reported a Q2 revenue of $1.03 billion, up 48% year-over-year (YoY), and a net income of $327 million, up 144% YoY. The stock has seen a robust YTD share performance of +300%, with a market capitalization of $432.51 billion as of September 19, 2025 Salesforce CEO Praises Palantir as it Closes $950M UK Defense Deal^[1].

Salesforce CEO Marc Benioff, speaking at the Goldman Sachs' Communacopia + Technology conference, expressed both admiration and a touch of envy for Palantir's performance. "I am so inspired by that company," Benioff said. "Not just because they have 100 times multiple on their revenue, which I would love to have too. Maybe it’ll have 1,000 times on their revenue soon" Salesforce CEO Praises Palantir as it Closes $950M UK Defense Deal^[1].

Palantir's growth and market capitalization have led to a reevaluation of what AI leadership looks like in practice. While the company faces privacy and political concerns, its ability to secure high-value contracts and expand its AI footprint is a testament to its strategic prowess. The deal with the UK Ministry of Defence also coincides with President Donald Trump's diplomatic visit to the UK, highlighting the broader trend of strengthening Western AI ties Salesforce CEO Praises Palantir as it Closes $950M UK Defense Deal^[1].

The market's response to Palantir's performance has been overwhelmingly positive, with shares up over 19% since the start of the third quarter. Analysts estimate full-year sales to exceed $4.14 billion, up from $2.87 billion last year Salesforce CEO Praises Palantir as it Closes $950M UK Defense Deal^[1].