Most software companies sell subscriptions. You pay a fixed amount every year, and the company only makes more money if it signs new customers or raises prices. That kind of growth is slow and limited.

Palantir works differently.

Palantir Gets Paid When Things Actually Improve

Palantir’s software is used to run real operations, not just store data. When its software helps a company work faster, cheaper, or with fewer mistakes, Palantir can get paid based on those results. This is often done through shared-savings contracts, meaning Palantir earns more when it saves its partner more time or money.

So instead of selling seats or licenses, Palantir becomes a partner in success.

A Simple Real-World Example: Navy Submarine Building

Here is a clear example of how this works.

After a recent announcement, the U.S. Navy confirmed that it ran a pilot program at General Dynamics Electric Boat, one of the main builders of U.S. submarines. Before Palantir, planning submarine schedules took about 160 hours of manual work. With Palantir’s system, that same planning was reduced to under 10 minutes.

That is not a small improvement. That is a complete change in how work gets done.

Because Palantir’s contracts are tied to impact, this kind of result directly benefits Palantir. Faster planning means fewer delays, lower costs, and better execution. The more value Palantir creates, the more it can earn without needing new customers or more employees.

Why the P/E Ratio Does Not Really Matter

This is why we believe Palantir’s price to earnings ratio is not very important right now. Palantir is not just selling software. It is helping organizations run better and sharing in the upside.

This is closer to how private equity works than how traditional software companies operate. Palantir embeds itself deep inside operations, becomes hard to replace, and grows as its partners grow.

This Works Beyond the Military

The same system can be used in many industries. Manufacturing, energy, healthcare, logistics, and transportation all deal with complex systems where small improvements save huge amounts of time and money. Anywhere results can be measured, Palantir can participate in the value it creates.

The Bottom Line

Palantir is not just a tech company. It is becoming part of how important work gets done. When its partners win, Palantir wins too.

That is why we remain long and strong Palantir.

At Italkstocks, we remain long and strong Palantir Technologies, and the reason is simple. Palantir is not a normal software company, so it should not be judged like one.

Most software companies sell subscriptions. You pay a fixed amount every year, and the company only makes more money if it signs new customers or raises prices. That kind of growth is slow and limited.

Palantir works differently.

Palantir Gets Paid When Things Actually Improve

Palantir’s software is used to run real operations, not just store data. When its software helps a company work faster, cheaper, or with fewer mistakes, Palantir can get paid based on those results. This is often done through shared-savings contracts, meaning Palantir earns more when it saves its partner more time or money.

So instead of selling seats or licenses, Palantir becomes a partner in success.

A Simple Real-World Example: Navy Submarine Building

Here is a clear example of how this works.

After a recent announcement, the U.S. Navy confirmed that it ran a pilot program at General Dynamics Electric Boat, one of the main builders of U.S. submarines. Before Palantir, planning submarine schedules took about 160 hours of manual work. With Palantir’s system, that same planning was reduced to under 10 minutes.

That is not a small improvement. That is a complete change in how work gets done.

Because Palantir’s contracts are tied to impact, this kind of result directly benefits Palantir. Faster planning means fewer delays, lower costs, and better execution. The more value Palantir creates, the more it can earn without needing new customers or more employees.

Why the P/E Ratio Does Not Really Matter

This is why we believe Palantir’s price to earnings ratio is not very important right now. Palantir is not just selling software. It is helping organizations run better and sharing in the upside.

This is closer to how private equity works than how traditional software companies operate. Palantir embeds itself deep inside operations, becomes hard to replace, and grows as its partners grow.

This Works Beyond the Military

The same system can be used in many industries. Manufacturing, energy, healthcare, logistics, and transportation all deal with complex systems where small improvements save huge amounts of time and money. Anywhere results can be measured, Palantir can participate in the value it creates.

The Bottom Line

Palantir is not just a tech company. It is becoming part of how important work gets done. When its partners win, Palantir wins too.

That is why we remain long and strong Palantir.