The AI Execution Era: Palantir and AppLovin's High-Growth Edge in 2025

The AI execution era is redefining the rules of growth investing. In 2025, two companies-Palantir Technologies and AppLovin-stand out as exemplars of how AI-driven execution can unlock unprecedented financial performance and strategic dominance. While Palantir focuses on embedding AI into enterprise workflows for governance and scalability, AppLovin has transformed its ad-tech platform into a high-margin, AI-first engine for global advertising. Together, they illustrate a new paradigm where execution, not just innovation, determines market leadership.

Palantir: Enterprise AI as a Scalable Infrastructure Play

Palantir Technologies has emerged as a critical infrastructure provider for enterprises seeking to operationalize AI. In Q3 2025, the company reported revenue of $1.181 billion, a 63% year-over-year increase, with U.S. commercial revenue surging 121% YoY according to CNBC. This growth is driven by its Artificial Intelligence Platform (AIP), launched in 2023, which integrates AI into mission-critical workflows while maintaining governance and security. According to CNBC, Palantir's AIP has become a "key growth driver across enterprise sectors," particularly for large corporations adopting AI-first strategies.

The company's strategic partnerships with Snowflake, Lumen, and Nvidia further solidify its position as a leader in enterprise AI according to CNBC. Notably, Palantir raised its full-year 2025 revenue guidance to $4.398 billion, reflecting sustained demand for its solutions. Its government segment, despite challenges from the U.S. government shutdown, grew 52% YoY to $486 million according to CNBC, underscoring the platform's resilience and broad applicability.

AppLovin: AI-Driven Ad-Tech as a Profitability Engine

AppLovin's transformation into a pure-play ad-tech company has unlocked explosive growth. In Q3 2025, the company reported revenue of $1.41 billion, a 68% year-over-year increase, with revenue per user rising 75% according to AppLovin's Q3 earnings. This was fueled by its Axon 2.0 AI platform, which optimizes real-time advertising decisions and expanded non-gaming ad spend quadrupling post-upgrade according to Klover.ai analysis.

AppLovin's strategic pivot to ad-tech-cemented by the sale of its mobile gaming business to Tripledot Studios for $400 million in May 2025-has redefined its financial model. The company now generates 78% of its revenue from the high-margin Software Platform segment, which includes Axon 2.0. Its profitability metrics are equally impressive: net income from continuing operations surged 93% YoY to $836 million, and adjusted EBITDA hit $1.16 billion with an 82% margin according to AppLovin's Q3 earnings.

Looking ahead, AppLovin's expansion into e-commerce, fintech, and Connected TV (CTV) positions it to capitalize on AI-driven ad spend growth. As stated by Klover.ai, the company's AXON 2.0 platform is designed to "dominate the ad-tech market by creating a fully integrated, data-driven ecosystem" according to Klover.ai analysis.

Comparative Edge: Execution-First AI in Action

Both Palantir and AppLovin exemplify the execution-first AI landscape, but their approaches differ. Palantir's strength lies in its enterprise infrastructure, where AI is embedded into workflows for governance and scalability. AppLovin, meanwhile, leverages AI to optimize real-time ad decisions, driving hyper-personalization and profitability.

Palantir's commercial business now accounts for 34% of total revenue, with a $1.3 billion TCV closed in 2025, reflecting its shift toward multi-year enterprise agreements. AppLovin's international expansion, with revenue evenly split between the U.S. and global markets, highlights its ability to scale AI-driven ad-tech globally according to WMedia Research.

Risks and Opportunities

Despite their success, both companies face challenges. AppLovin must navigate a demand-constrained ad market and improve onboarding for new advertisers according to Yahoo Finance, while Palantir's reliance on enterprise AI adoption could face headwinds if macroeconomic conditions deteriorate. However, their strong cash flows-AppLovin's $1.2 billion share buyback program according to Klover.ai analysis and Palantir's raised revenue guidance-suggest confidence in their long-term trajectories.

Conclusion: A New Benchmark for Growth Investing

Palantir and AppLovin are redefining growth investing by demonstrating that AI's value lies not in theoretical potential but in execution. Palantir's enterprise AI infrastructure and AppLovin's ad-tech engine both deliver scalable, high-margin growth, supported by robust financials and strategic clarity. For investors, these companies represent a compelling case study in how execution-first AI can drive market leadership in 2025 and beyond.