Palantir (PLTR) Rapid Growth Justifies 42x Valuation Premium Over ServiceNow (NOW), Analysts Say

Palantir Technologies Inc. (PLTR) trades at a 42 times forward price-to-earnings ratio, far above ServiceNow Inc.’s (NOW) 6 times, but analysts argue that Palantir’s explosive contract wins and revenue acceleration justify that premium. The company’s government and commercial segments each delivered triple-digit growth in the first quarter of 2026. U.S. government revenue surged 84% to $687 million, while U.S. commercial revenue jumped 133% to $595 million. Palantir signed 206 deals over $1 million each, including 47 exceeding $10 million. Total contract value reached $4.262 billion, a 138% annual increase, and the company raised its full-year revenue guidance to $7.65–$7.66 billion. Analysts project 72% revenue growth in 2026 and 44% in 2027. ServiceNow reported a 22% rise in first-quarter revenue to $3.77 billion but cautioned that subscription growth is slowing due to contract delays in the Middle East. It guided for 22.5% subscription revenue growth in the second quarter. Market forecasts see 22% growth in 2026 and 18.4% in 2027, a far slower pace. The divergence in growth trajectories supports Palantir’s outsized valuation, analysts said.