Palantir’s $170 Jacket Sells Out in Seoul. Can Growth Support Its Stock?

A $170 white windbreaker sold out within hours at Palantir’s Seoul pop-up, Bloomberg reported on October 26. The jacket was exclusive to South Korea. Eliano Younes, the software company’s head of engagement, told Bloomberg that sales at the event rose 30% from a year earlier.

Just before the pop-up, Korean battery-materials producer POSCO Future M signed a software deal with Palantir. In an October 22 announcement, POSCO Future M said it would adopt Foundry and the Artificial Intelligence Platform, or AIP, initially for sales and marketing. It would assess the results before considering a broader rollout into manufacturing and other operations.

Foundry brings a company’s data together for analysis and day-to-day operations. AIP connects large language models to those workflows, with tools to manage access and evaluate their performance, according to Palantir’s documentation. A manufacturer, for example, could combine order, inventory and production records to assess delivery schedules or use AI to help carry out tasks.

Palantir charges for software subscriptions, maintenance and professional services. Contracts typically run for one to five years, with software revenue generally recognized over the contract term, its quarterly filing says. Customers can spend more as they extend the software to additional operations. If that expansion slows, Palantir would need more business from new customers to sustain growth.

Second-quarter results showed U.S. commercial revenue rising 149% from a year earlier, while U.S. government revenue increased 90%. Together, those customers accounted for about 81% of sales.

Total revenue rose 93% to $1.935 billion. Operating income under U.S. generally accepted accounting principles reached $912 million, a 47% margin. The business generated $1.216 billion in operating cash flow during the quarter.

The shares, which trade on Nasdaq under the ticker PLTR, closed at $196.75 on October 23, up 0.29% that day and about 5.8% from the October 16 close.

At that price, Palantir’s equity would be worth roughly $472.8 billion using the 2.403 billion common shares disclosed as outstanding on July 27. That is about 58 times the $8.154 billion midpoint of management’s 2026 revenue guidance. The estimate does not reflect any subsequent change in the share count.

In an illustrative scenario with no change in shares outstanding, even 50% revenue growth the following year would lift the equity valuation by only about 3.5% if the price-to-sales multiple fell from roughly 58 to 40. A lower multiple would absorb almost all the benefit of the higher revenue.

Stock-based compensation totaled $265 million in the second quarter, about 14% of revenue. Excluding that expense and related employer payroll taxes produced an adjusted operating margin of 62%, compared with 47% under GAAP. Equity awards reduce the need to pay compensation entirely in cash, but subsequent share issuance can dilute existing owners.

Government customers can cut orders, decline to renew contracts or cancel multiyear agreements if funding is unavailable in later years, Palantir says in its quarterly filing. Many contracts also allow early termination. The company says it has not historically converted the full value of all its contracts into revenue.

Palantir is scheduled to report third-quarter results after the U.S. market closes on November 2. Its most recent guidance called for quarterly revenue of $2.160 billion to $2.164 billion.