Palantir (PLTR) Stock: Gains 10% as Oracle Partnership Fuels AI Growth

TLDR

• Oracle’s CEO Safra Catz announced $455 billion in contracted sales, with forecasts showing cloud revenue growing from $18B to $144B by fiscal 2029
• Palantir stock rose 9.82% this week driven by AI sector optimism and Oracle’s partnership benefits
• Oracle signed four multibillion-dollar contracts in Q1, with several more expected as AI demand surges
• Palantir’s U.S. commercial segment grew 93% year-over-year in Q2, powered by its AI Platform (AIP)
• Despite growth momentum, Palantir trades at 196 times next year’s expected earnings, raising valuation concerns

Palantir Technologies stock jumped 9.82% this week after Oracle delivered blockbuster forecasts that could reshape the cloud computing landscape. The data analytics company is positioned to benefit directly from Oracle’s aggressive expansion plans through their existing partnership.

Oracle CEO Safra Catz dropped a bombshell Tuesday when she announced the company signed four multibillion-dollar contracts in the first quarter alone. The tech giant’s remaining performance obligation soared 359% to a record $455 billion in contracted sales.

The company projects fiscal 2026 cloud revenue of $18 billion, up 77% from current levels. By fiscal 2029, Oracle expects cloud revenue to hit $144 billion, representing a more than sevenfold increase over five years.

Oracle’s cloud infrastructure division has historically lagged behind Amazon Web Services, Microsoft Azure, and Google Cloud. In the second quarter of 2025, Oracle Cloud Infrastructure controlled just 3% of the market compared to AWS’s 30% share.

Partnership Creates Growth Pipeline

Palantir forged a wide-ranging partnership with Oracle last year that positions the company to ride Oracle’s wave of expansion. Under the deal, Palantir moved its Foundry workloads to Oracle Cloud and made its AI Platform deployable across Oracle’s distributed infrastructure.

This partnership gives Palantir access to a growing pool of potential enterprise customers as Oracle expands its cloud footprint. The timing couldn’t be better as businesses scramble to adopt AI tools that deliver proven returns on investment.

Palantir’s AI Platform has emerged as the company’s primary growth engine in recent quarters. The platform embeds deeply into existing customer systems to provide real-time, actionable insights for business challenges.

The company’s U.S. commercial segment, which includes AIP, posted 93% year-over-year growth in the second quarter. Quarter-over-quarter growth reached 20% as enterprise adoption accelerated.

Palantir runs hands-on boot camps where developers work directly with company engineers to create solutions for real-world business problems. These sessions have proven effective at demonstrating the platform’s capabilities to potential customers.

Riding the AI Spending Wave

Enterprise AI spending is expected to reach $1.15 trillion between 2025 and 2027, creating a massive opportunity for companies like Palantir. The data analytics firm is working to expand beyond its traditional government contracts into commercial markets.

Analyst Derek Yan from KraneShares defended Palantir against recent investor concerns, arguing that selling pressure came from broader market factors rather than fundamental company issues. The company’s expanding client base and successful AI demonstrations support this view.

Palantir has generated stock gains of 2,500% over the past two years as investors bet on the AI revolution. The company evolved from serving primarily U.S. intelligence agencies to building enterprise-focused AI solutions.

Revenue growth hit 48% year-over-year in the latest quarter, demonstrating the company’s ability to monetize AI demand effectively. The commercial segment’s rapid expansion shows Palantir’s success in diversifying beyond government contracts.

Oracle’s massive contracted sales backlog provides visibility into sustained AI demand over multiple years. Most of Oracle’s revenue guidance is already secured through existing contracts, with additional deals potentially boosting forecasts further.

Valuation Concerns Persist

Wall Street analysts maintain a consensus “Hold” rating on Palantir stock despite the growth prospects. The company trades at 196 times next year’s expected earnings, making it one of the most expensive stocks in the technology sector.

Some investors point to Palantir’s reliance on sentiment-driven trading and high valuation metrics as potential risks. The stock’s recent decline from peaks near $190 has created what some view as a more reasonable entry point.

However, concerns about customer concentration and market volatility continue to weigh on investor sentiment. The company’s success remains closely tied to continued AI adoption and its ability to win commercial customers.

Oracle’s contracted sales of $455 billion represent the largest backlog announcement in recent memory, with several additional multibillion-dollar deals expected in coming quarters.

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