Palantir Technologies

The Rule of 40 adds a software company's rate of revenue growth with its profit margin, where a score above 40 is deemed as a good thing. A Rule of 40 score of 145 is one of the highest scores recorded by a large software company, Palantir has an adjusted operating margin of 60% and revenue growth of 85%. Karp stated that, Palantir's performance is far exceeding AI leaders like Nvidia, Micron, and SK Hynix, with Palantir's AI software capturing value at the software layer while those companies capture value at the AI hardware layer. Additionally, Palantir's 88% adjusted gross margin, and operating cash flows of $899 million, and adjusted free cash flows of $925 million all signal its profitability and revenue are moving up together.

Palantir's customers are also increasing at a faster pace. Following the implementation of Palantir AIP, GE Aerospace has achieved a 26% increase in production output. S.