Palantir Shares
Legacy enterprise software and data platforms are being repriced as investors weigh disruptive “agentic” AI against the resilience of incumbent providers.
What's happening
Shares of Palantir Technologies and ServiceNow are rebounding after a sharp sector-wide sell-off dubbed the “SaaSpocalypse,” triggered by fears that autonomous AI agents from Anthropic and OpenAI could erode traditional seat-based software models. Recent analyst commentary argues that valuations became deeply oversold and that established, “sticky” platforms with entrenched roles in compliance, governance, and complex data workflows may be more durable than initially feared. At the same time, Palantir’s latest results underscore how some incumbents are still posting exceptionally strong growth despite market volatility.
Key points
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Palantir reported Q4 2025 revenue of $1.41 billion, beating guidance and lifting year-over-year growth to 70%, its tenth straight quarter of accelerating growth.
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U.S. commercial revenue for Palantir jumped 137% to $507 million, with remaining deal value up 145% to $4.38 billion and total U.S. commercial deals value rising 67% to $1.34 billion.
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Palantir’s adjusted earnings per share increased from $0.14 to $0.25, net revenue retention reached 139%, and its customer count grew about 34%, supporting its positioning as a premier AI-driven software provider.
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Despite strong fundamentals, Palantir shares are down about 14.7% year-to-date and trade roughly 31% below their November 2025 high, amid concerns that AI agents could bypass traditional software.
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ServiceNow shares, down about 29.8% year-to-date and roughly 50.4% below their July 2025 peak, rose around 3% as investors reassessed oversold valuations and the stickiness of incumbent platforms.
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The catalyst for sector volatility is the launch of Anthropic’s Claude Opus 4.6 and OpenAI’s Frontier platform, which can automate complex enterprise workflows via APIs, raising fears of commoditized software and disrupted licensing models.
Context and implications
The tension between rapid AI innovation and the durability of enterprise software contracts is driving large price swings in AI-adjacent stocks. Analysts argue that migrations away from entrenched systems are slow and heavily constrained by compliance, governance, and switching costs, which may give leading incumbents time to adapt their products and pricing.
Palantir’s accelerating growth suggests that, for now, advanced AI capabilities can reinforce rather than replace certain platforms, especially those central to data integration and mission-critical operations. Yet the emergence of powerful autonomous agents capable of “software-hunting” and executing work directly through APIs introduces real uncertainty about the long-term viability of seat-based licensing and specialized applications.
Investors are oscillating between disruption fears and confidence in incumbency advantages, with volatility likely to persist as enterprises experiment with agentic AI in production. Key metrics to watch include net revenue retention, contract duration, and how quickly companies embed or partner with leading AI models.
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