Yahoo Financeยท2025-09-23 10:15Group 1 - Palantir and IBM are benefiting from increased government spending on AI-driven defense programs, with Palantir securing contracts with the U.S. Army, U.K. Ministry of Defence, and Canada's Department of National Defence, while IBM signed new semiconductor security contracts with the Department of Defense [1] - Palantir's stock has surged over 400% in the past 12 months, attracting growth investors, whereas IBM's stock has advanced just over 20%, appealing to value investors [2] - Palantir's revenue composition in the first half of 2025 was 55% from government business and 45% from commercial business, with growth driven by U.S. commercial business and government contracts [4] Group 2 - Palantir's revenue growth was 47% in 2020, 41% in 2021, but slowed to 24% in 2022 and 17% in 2023 due to timing of government contracts and macroeconomic challenges, though it became profitable in 2023 by streamlining spending [5] - In 2024, Palantir's revenue rose 29% and net income more than doubled, driven by U.S. commercial business expansion, AI application adoption, and increased government contracts due to conflicts [6] - Analysts project Palantir's revenue and earnings per share (EPS) to grow at a CAGR of 38% and 63% from 2024 to 2027, but the stock trades at 305 times next year's earnings, indicating potential for a pullback [7]