Trump's Iran Strategy Puts Palantir in the Spotlight -- but Is This Defense‑Data Stock Built for Long‑Term Investors?

By Robert Izquierdo – Apr 17, 2026 at 11:00AM ESTKey PointsThe U.S. military is heavily using Palantir's technology in the war with Iran.The company's artificial intelligence solutions are in strong demand, and customers have been signing new multiyear contracts with it.Palantir's valuation remains high even after a significant share price drop in 2026.The U.S. war with Iran has further elevated the profile of Palantir Technologies (PLTR +3.41%).

President Donald Trump praised the company on his social media platform, stating, "Palantir Technologies (PLTR) has proven to have great war fighting capabilities and equipment." The tech titan's ability to analyze vast amounts of data and sift out actionable insights through artificial intelligence has given it a groundbreaking role in the conflict. According to Palantir Chief Technology Officer Shyam Sankar, the war with Iran is "the first large-scale combat operation that was really driven... with AI." Although Palantir's current role in the limelight may make it seem like a defense sector company, that may not last, especially after Trump leaves office. This raises the question: Is the stock a worthwhile long-term investment? Image source: Getty Images. Palantir's business growth Despite its role assisting the U.S. government, particularly its military and intelligence arms, Palantir's shares are down about 20% this year through April 16. That decline is in part a result of Wall Street's "Great Rotation" away from tech stocks. The company's actual financial performance, however, remains outstanding. In the fourth quarter, revenue rose a whopping 70% year over year to $1.4 billion. Breaking that top-line figure down further delivers useful insights. Government sales comprised $730 million of the total, a 60% year-over-year increase. This segment could see further growth in Q1 due to the Iran conflict. Yet what's more telling about Palantir's long-term business prospects is the portion of revenue it's getting from the commercial sector. Here, Q4 sales were $677 million, representing an impressive 82% year-over-year jump. That shows the company is successfully capturing new non-government customers. ExpandNASDAQ: PLTRPalantir TechnologiesToday's Change(3.41%) $4.87Current Price$147.63Key Data PointsMarket Cap$341BDay's Range$143.30 - $148.2852wk Range$89.31 - $207.52Volume782KAvg Vol53MGross Margin82.37% Palantir's AI achievements Palantir's commercial business is quickly growing thanks to its Artificial Intelligence Platform (AIP). For example, in March, the company extended its partnership with Stellantis for an additional five years. The automaker is using AIP to bring AI to its operations. The Stellantis deal is just the tip of the iceberg. Palantir is joining forces with fintech company Moder to build an AI-powered platform for the mortgage industry. And it signed a multiyear deal to expand its partnership with GE Aerospace in March, also involving the use of AIP. This customer demand validates Palantir CEO Alex Karp's assertion that, "We are still at the very start of things. This remains the beginning, the first moment of a first chapter." That sentiment makes sense, as organizations around the world are concluding that they will need to either adopt artificial intelligence tools or risk falling into obsolescence. This has led to numerous ambitious forecasts for the growth of the AI market. Statista, for example, predicts that the size of the space will expand from $335 billion in 2026 to a jaw-dropping $1.3 trillion by 2032. Palantir is benefiting from the AI tailwind, as its Q4 results attest, and there's no sign that a slowdown in sales is coming anytime soon. The company is guiding for revenue to accelerate to $1.5 billion in Q1, a massive increase from the prior-year period's $883.9 million. Not only that, management is driving that growth without sacrificing financial health. Palantir exited 2025 with a spectacular balance sheet. Total assets were $8.9 billion, with $1.4 billion of that in cash and equivalents, and $5.8 billion in marketable securities. Total liabilities were $1.4 billion, but more than $450 million of that was deferred revenue, which will eventually be recognized as sales, and the company has no debt. The long-term investment thesis Palantir's robust business growth resulted in Q4 net income of $611.6 million compared to $76.9 million in the prior-year period. In spite of that impressive bottom-line increase coupled with this year's share price decline, its stock valuation remains high: It still trades at a price-to-earnings ratio of more than 200. Data by YCharts. Even so, as the chart shows, Palantir's earnings multiple is around its 52-week low. This suggests that if you're interested in buying shares, now looks like a good time to do so. Beyond the U.S. conflict with Iran, Palantir's potential for business expansion remains vast, as exemplified by its significant commercial sales growth. This, combined with rapidly rising profits and an excellent balance sheet, points to the tech company being a solid long-term investment.Read NextApr 17, 2026 •By Brett SchaferTrump's Record Defense Budget Is Reshaping the Pentagon: 3 Stocks That Will BenefitApr 16, 2026 •By Will HealyAn Active Conflict Has Not Boosted Palantir Stock for This Forgotten ReasonApr 16, 2026 •By Micah ZimmermanGot $3,000?

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Read This FirstAbout the AuthorRobert "Izzy" Izquierdo is a contributing Motley Fool stock market analyst covering information technology, consumer discretionary, consumer staples, and communication services sectors. Prior to The Motley Fool, Izzy was head of product management at Target Media Partners, developing and launching multimillion-dollar software used by businesses such as Charter Communications. Prior to that, he worked at Yahoo! and startups on software products in connected TV, AI, consumer apps, and digital advertising. He holds a bachelor’s degree in English literature from UCLA and is certified in software product management.TMFWryWriteStocks MentionedPalantir TechnologiesNASDAQ: PLTR$147.63(+3.41%)+$4.87*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.