Palantir’s biggest stock risk may be shifting AI competition, not its valuation of 160 times trailing sales, The Motley Fool argues. AI agents have not yet been shown to displace SaaS services, but rivals could eventually match Palantir’s privacy-focused platform.
Palantir’s revenue rose 93% year over year in Q2 2026, including 104% growth in U.S. commercial revenue, while GAAP operating margin climbed to 47% from 27% a year earlier. Total contract value reached $3.37 billion at quarter-end, up 49%; Q3 revenue growth was expected to be about 83%, which would end the growth-acceleration streak.
Management says Palantir’s advantage is a complete, sovereign solution for customers wary of having proprietary data used to train public foundation models. The article notes that other AI companies may also develop privacy-protecting models, potentially eroding Palantir’s first-mover edge.
